How to borrow money from your friends and pay them back

Asking a friend or family members to borrow a large sum of money is a stressful situation. Who do you ask, and for how much? How do you set up a payment plan that works for everyone involved? Nothing. Corn. Stress.

Google Wallet, Square Cash, and PayPal all offer convenient ways to lend money, but none of them are automated. Every time someone wants to send money, they have to launch the app and follow a series of steps.

Flange is a service that you access using an application on your mobile phone, currently iOS or Android. The service acts as an intermediary, where you set up a campaign to borrow money. You give your campaign a name, set the amount you want to borrow, an interest rate you’re willing to pay those who participate, and how long you’ll pay off your debt.

You can see an example of a Ledge campaign here.

Screenshot by Jason Cipriani/CNET

You can borrow between $50 and $5,000, depending on the laws of your country of residence.

Each month, Ledge will charge your linked Venmo account a portion of the loan amount and split it among those who lent you money. Monthly installments will be made until the loan is fully repaid.

You can think of Ledge as a similar service to GoFundMe, only people who give you money will eventually get it back plus a bit more.

After creating your campaign, you can share the link widely, asking your friends and family members to lend you money. Contributors can enter the amount they want to lend you, so you don’t have to ask one person for the total amount or figure out how to split it.

As soon as your campaign is fully funded, Ledge will charge lenders on Venmo accounts for the pledged amount and then transfer the money to your Venmo account. You have 30 days to convince enough people to give you money before the campaign ends.

For its part, Ledge does not currently charge users to use the service.

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