When a person is about to give a loan, he should remember that the Sages said, “One who gives a loan to his fellow without witnesses, transgresses the prohibition of, Do not place a stumbling block before a blind person, and he brings a curse upon himself.” Therefore, before extending any type of loan, whether money or merchandise, one should do it a document with witnesses, or with a handwritten promissory note which is as binding as a document with witnesses. If having a document prepared will incur an expense, he should not be concerned about the expense, for it has happened many times that people have been unable to collect their debts simply because they did not have document to prove it. In fact, such people deserve their loss of money because they went against the words of the Sages.
And if a poor person comes and asks for a small loan, one should not turn the man away, even if it is not likely he will be able to pay, but he should tell the man that it is a gift, so that the man will not be considered a wicked one who borrows but repays not (Tehillim 37:21). Otherwise, by giving money to the man, it is like placing a stumbling block in front of the blind. It would not suffice to forgive the man in his heart, because if the borrower is not aware that he has been forgiven, he continues to intend on withholding the loan. Therefore, the lender should tell the man explicitly, “Do not be upset that you cannot pay; I really do not mind, and I consider it as if I have already received the money. When Hashem will give you the opportunity, you can pay me then.” In this manner, one has the merit of two mitzvos – giving a loan and tzedakah – and Hashem will pay him. An upright Jew who believes with complete faith in the words of our Sages, which were said with Truth, will not have any difficulty if he gave a loan to a poor person in distress and the fellow consumed it. Rather, he will believe with complete faith that Hashem has already paid him back, and then some, and so he will not look disfavorably at his impoverished fellow Jew.
And if one is not in the position to give the loan at that time, and so he will be unable to fulfill the poor person’s request, he should not push the fellow off with a “go and come back later” response. Rather, he should tell the fellow explicitly that he does not have the funds, and he should sooth the fellow with such words as, “I feel bad about your situation; I wish I could help you with all my soul, but what can I do? I do not have it.”
