Lending money?
#1
Lending money?
I've been asked to lend a friend money- 10K sterling.
I hate being put into the position. He is having cash flow problems but should be fine once he gets paid by an outstanding job which should be in the next 6 weeks and will pay me back then. His credit rating with the bank means he can't borrow it from there.
Would you loan it?
In theory I don't need the money until later this year. He is a good friend and a colleague who I have previously had a shared business venture with and I do trust him. He has said that if he is unable to pay back by 1st June he will sell his car ( worth 7 1/2K) and some of his kit (worth thousands) to pay me back so he does have the collateral.
If you would what would you put in a contract? does a contract need to be drawn up by a solicitor?
With this kind of thing if he were not to pay would I be able to take him to the small claims court?
Anyone? Advice please.
I hate being put into the position. He is having cash flow problems but should be fine once he gets paid by an outstanding job which should be in the next 6 weeks and will pay me back then. His credit rating with the bank means he can't borrow it from there.
Would you loan it?
In theory I don't need the money until later this year. He is a good friend and a colleague who I have previously had a shared business venture with and I do trust him. He has said that if he is unable to pay back by 1st June he will sell his car ( worth 7 1/2K) and some of his kit (worth thousands) to pay me back so he does have the collateral.
If you would what would you put in a contract? does a contract need to be drawn up by a solicitor?
With this kind of thing if he were not to pay would I be able to take him to the small claims court?
Anyone? Advice please.
Last edited by kittycat1; Jan 24th 2013 at 7:28 am. Reason: extra questions
#2
Re: Lending money?
He is having cash flow problems but should be fine once he gets paid by an outstanding job which should be in the next 6 weeks and will pay me back then. His credit rating with the bank means he can't borrow it from there.
Last edited by weasel decentral; Jan 24th 2013 at 7:34 am.
#3
Re: Lending money?
I've been asked to lend a friend money- 10K sterling.
I hate being put into the position. He is having cash flow problems but should be fine once he gets paid by an outstanding job which should be in the next 6 weeks and will pay me back then. His credit rating with the bank means he can't borrow it from there.
Would you loan it?
In theory I don't need the money until later this year. He is a good friend and a colleague who I have previously had a shared business venture with and I do trust him. He has said that if he is unable to pay back by 1st June he will sell his car ( worth 7 1/2K) and some of his kit (worth thousands) to pay me back so he does have the collateral.
If you would what would you put in a contract? does a contract need to be drawn up by a solicitor?
With this kind of thing if he were not to pay would I be able to take him to the small claims court?
Anyone? Advice please.
I hate being put into the position. He is having cash flow problems but should be fine once he gets paid by an outstanding job which should be in the next 6 weeks and will pay me back then. His credit rating with the bank means he can't borrow it from there.
Would you loan it?
In theory I don't need the money until later this year. He is a good friend and a colleague who I have previously had a shared business venture with and I do trust him. He has said that if he is unable to pay back by 1st June he will sell his car ( worth 7 1/2K) and some of his kit (worth thousands) to pay me back so he does have the collateral.
If you would what would you put in a contract? does a contract need to be drawn up by a solicitor?
With this kind of thing if he were not to pay would I be able to take him to the small claims court?
Anyone? Advice please.
#4
Re: Lending money?
Brit- of course i can't afford to lose it. I have also had my fingers burnt before which is one of the reasons I'm hesitant and would want a legal document confirming terms etc, I don't know what level of contract. Is something written down by us and signed by both of us enough to stand up in court? I would need to take to the small claims court though.
#5
Re: Lending money?
Brit- of course i can't afford to lose it. I have also had my fingers burnt before which is one of the reasons I'm hesitant and would want a legal document confirming terms etc, I don't know what level of contract. Is something written down by us and signed by both of us enough to stand up in court? I would need to take to the small claims court though.
#6
Re: Lending money?
I would want to put it in writing just so he understands my terms completely- and i want no room for misunderstandings. I would do that whether he was my brother or parent as well.
I'm too much of a girl as I hate to say no as I know he hasn't asked easily
I'm too much of a girl as I hate to say no as I know he hasn't asked easily
#9
Re: Lending money?
Hmmmm. In my eyes its either a no brainer or a no I think the fact you asked the masses reveals you are hesitant. 10k is not small change and anyone that cannot raise that sort of money from a bank etc obviously has a history of missed payments or defaults. Why would lending from you be any different?
#10
Lost in BE Cyberspace
Joined: Nov 2012
Location: bute
Posts: 9,740
Re: Lending money?
50 quid - yes. 10,000 ???????
NO
NO
#11
Account Closed
Joined: Mar 2012
Location: Dubai, working at Dust World Central
Posts: 3,706
Re: Lending money?
No, it'll only end in tears.
#14
BE Forum Addict
Joined: Jun 2008
Location: Abu Dhabi by body and Sydney by soul
Posts: 1,841
Re: Lending money?
That amount is too large to mess with. It's your deposit for a house, you don't have it spare though it is a liquid asset at the moment.
Maybe offer 1k and get him to find the rest from 9 others if you really believe him when he says he'll pay it back.
Maybe offer 1k and get him to find the rest from 9 others if you really believe him when he says he'll pay it back.
#15
Forum Regular
Joined: Oct 2012
Location: The Land That Sense Forgot (thanks Ash786)
Posts: 35
Re: Lending money?
Tell him that, while you're not expecting to need the money 'til later in the year, if the right place comes on the market before hand, then you need to have that money available at short notice.
1K is more than sufficient risk IMHO, particularly if you're as unsure as you seem to be...