Re: Lending money?
 

Cant you loan him £5k instead of the full amount and say to him you have some unexpected expenses ?

Re: Lending money?
 

no no no...tell him the truth, that you are saving up for a home, it's the only reason you are giving up your freedom.

Re: Lending money?
 

+1

Don't lie to your friend - be honest tell him you are uncomfortable with lending that sum of money to him.

Re: Lending money?
 

If you have to ask on here then you already know that the answer should be a resounding NO.

Its you who will be screwed not him if he doesn't pay you back
If he doesn't then small claims will be of no use as he cant apy anyway
If his credit rating is insufficient to borrow then he has proved to many others that he doesn't repay debt
if he has collateral he can sell to repay you then why not sell it now to raise the funds in the first place

and just i case your confused.
NO

Re: Lending money?
 

I don't like his reason for the loan...after all, don't we all get cash flow problems? If it was for some essential hospital treatment, then maybe. My answer would be no. Ask yourself why he has not looked elsewhere for the money. He probably assumes that, working in Dubai, you must be loaded and won't miss it if he never pays you back.

Re: Lending money?
 

Just to add my 2fils worth, he is saying he'll pay you back in 6 weeks and then mentions if he hasn't by 1st June he'll sell stuff. The 1st of June is 18 weeks away!

Too many inconsistencies for my liking.

No.

Re: Lending money?
 

You say he's a good friend. I guess we all have different ways of assessing that. I have perhaps half-a-dozen friends who I would lend money to, and I did to one of them when I was in my 20's. I knew and trusted him well enough to know that he'd pay it back.

But here's the rub: I went a bit overboard in the contract I drew up, and it damaged our friendship for a while.

Only you can decide how deeply you trust him. If you go ahead, it would be wise to have a simple contract. Doesn't need to be drawn up by a solicitor, it just needs to be sufficiently clear and enforceable. But you need to know that he really does own assets that could be converted to cash if he fails to pay and you decide to enforce the contract. I'm assuming he's in the UK: in which case those assets must also be in the UK. His car seems to be a major one: does he actually own it?

Not sure of the limits at the small claims court. You don't need to be represented by a lawyer there, but it would be hassle.

The real risk is not the money. If he's truly a good friend then, and if it goes pear-shaped, you could lose that friendship.

Re: Lending money?
 

No.
a. only lend money that you can afford to lose.
B. money business between friends usually ends bad.
C. he already has money problems, that shows he is not exactly good at handling money matters...why should it be different when it comes to the money you gave to him?

Re: Lending money?
 

NO, NO, NO. And what’s with this if you can afford to lose it business?

I put all of my cash in the 'can't afford to lose it bracket'. Whether it is 10 bob, or 10 grand. It's mine, as it is yours, no doubt you have worked hard to earn it, and no amount should be lost through doing someone a massive favor.

A lifelong friend of the wife’s borrowed money from us as she got herself into the shit through being owed money from her firm, nearly £8K in all, we even paid to fly her home, and put her up for 3 months. She finally got her money, but we never. She left for OZ as she had been offered a position shortly after.

Her parents made the very kind gesture of offering to pay on her behalf, as the misses has known them from childhood, and they were both deeply embarrassed , but the wife turned it down, probably the right thing, although had I of been there I would have taken it.

This may not happen to you, but my/our experience from someone my wife trusted and was friends with from nursery, has left me not wanting to part with a penny to anyone.

I am also of the opinion that friends should not put you such a position. A couple of grand perhaps, but £10K:thumbdown:

Re: Lending money?
 

No, Kitty - don't do it. None of us know how long we are here for. Imagine if you had to leave tomorrow. Would you still have enough (minus the 10k) for a deposit? I would help anybody in a jam, but not to the tune of 10k. It's too much.

If he needs the money that desperately, then he should sell his car and get a hire car for a while.

Re: Lending money?
 

Don't do it - my husband lent a family member a substantial sum last year and they promised to pay back in instalments each month. 13 months on they have paid some but missed three instalments and bought a new car! The payment gets later every month and I am not confident that we will get it all back.

Re: Lending money?
 

Madness! Loans over £50-100 are the domain of the banks. Not your mates. Unless it's a gift. You stand to lose so much if said mate bails.

Re: Lending money?
 

I learnt the hard way that lending money always looses you friends, and sometimes that money as well ;)
Say no and if he is a good friend he wouldn't be offended
If he does get offended.....

Re: Lending money?
 

You don't need a solicitor to draw up a legally binding contract, but I'd advise you not to do it. Tell him the money is tied up in a savings account that you can't access for six months.

Re: Lending money?
 

What does your friend need the 10K sterling for? If it's for paying bills has he asked for an extension of the due date? Has he asked for an advance payment of the outstanding job, perhaps if he gets 85 percent of it now instead of 100 percent in 6 weeks? Is there any other credit institute that will lend him the money but with a higher interest?

I assume the friend is in the UK so what's the worst thing that could happen to him? His credit rating seems to be rather low anyway.

If you can have the car in your name and at your place, the same thing with the other assets that would be a different story. Sort of like a beneficial pawn shop. I guess that's not possible though. Bear in mind that as it is now other creditors might be entitled to a share of his assets.

I would have offered him advice on how to sort out the situation.