Lending People Money
In the poker culture, people are always going broke, or getting rich quickly. Inevitably, someone you become acquainted with will need money to get in a game, and you will be faced with a decision. Having a predetermined set of guidelines for who you lend to, how much you lend them, and what their arrangement for paying you back is will protect you and allow you turn a favor into an investment. Never loan or stake someone who you don’t believe would return the favor, or that you are weary of collecting from in the event they are resistant to paying you back. In this case, you are basically giving them a free roll, because they don’t ever plan on paying you back.
Rather than considering a loan to a friend a favor, consider it a business proposition. If you are confident in your friend’s abilities, offer to stake him and arrange to get your stake back plus a percentage of your winnings. The standard agreement is stake back plus half of the winnings, and can be based on number of sessions or a specified time frame.
If you decide to go the straight loan route, get a percentage back on your loan in the range of interest that a bank would offer. Again, it is important you know that the individual you are dealing with is an upstanding person, and will be able to pay the loan.
If you are ever in the position where you need a loan, make sure to pay back as soon as you are able to, and if you are faced with a decision of paying a loan or being short money, pay the loan. Your virtual bankroll will be much larger if you maintain good credit with your lenders in the poker community.
Loans are a general practice in poker , and learning to properly manage the money you loan or invest in other people will not only save you money in the long run, it will earn you money if you lend and invest wisely.
