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lending money to mates

What can I do, i have lent several thousand pounds to a mate to start a business on a short term basis. He now can't a remorgage to pay me back, and finished the business.

Comments

  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    Have you read the 'Sticky' above about lending money to friends and family?
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
  • Did you have an agreement?
    Abbey Loan £6,000
    Tesco loan £3,000
    Tesco points --- £100 worth £400 in deals for holiday! :j :T
    "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." (Charles Darwin)
  • ts_aly2000 wrote:
    Wider issue. Somehow though, lending money to people to *start* businesses I've never quite understood as if they had any accumen in the first place then they wouldn't need to borrow any money. The rule is to start small and grow. Not to have great expectations and be turning over your first million by Q1. Which inevitiably does not happen.
    Sorry slightly off topic;
    I'd have to disagree with the above comment, to a degree.
    Fair enough, i dont think you should lend friends great amounts of money if its going to effect your life if they dont pay it back.

    Plus if you know nothing about business then you should have got a professional to check out your friends business plan, and please say he did have a written business plan?

    But i dont neccessarily think if you borrow money to start your own business you dont have any business accumen,there are plently of very smart business people out there that have borrowed to start a successful large business.

    If you think small you stay small.

    "Make no small plans for they have no power to stir the soul." (Niccolo Machiavelli)
    Abbey Loan £6,000
    Tesco loan £3,000
    Tesco points --- £100 worth £400 in deals for holiday! :j :T
    "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." (Charles Darwin)
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ...He now can't a remorgage to pay me back, and finished the business.
    Remortgage and the business are not the only possible sources of money. He can sell his belongings and get some job ...
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