Real-life MMD: Should I act as guarantor for oldest friend's son? 28 November 2013 at 4:48PM edited 3 December 2013 at 5:35PM in MoneySaving polls 74 replies 14.8K views

Johnbyte

Don't do it - unless you're prepared to kiss goodbye to £5000+.


The only business acumen your friend's son has demonstrated, is the ability to get into financial trouble.

DigForVictory

Apologise but soften it with weblinks & advice eg PT & small business startup info.
Share the risk with other taxpayers, don't try to carry it alone!

Your friend may well appreciate that good advice now may be worth more than 5K & a trashed friendship, or not.

janiebquick

Has the son tried one of the micro loan companies, such as Zopa?

kryssykk

As with most of the others I say NO and NO again.
I live by the old adage
"Neither a lender or a borrower be"
perhaps you could take it up as your answer to your friend who should never have asked such a question and put you in this position in the first place.

mumf

No. I have been put in this position with my bankrupt Brother. I said no. He got over it after a week.
Don't do it.

MeanJean

I would never ask an old friend to take on a financial risk for me or my family. I agree with all that has been said - no no no don,t act as a guarantor. AND take a searching look at what kind of friend this person is. Some people are true friends and others are people you socialise with. No true friend who values you would ask this of you, surely?

Winter_Phoenix

If you are an expert in the kind of business the son wants to start, AND you think his idea is brilliant, AND you don't much mind losing £5K+, then by all means take on the role of guarantor - why not?

Otherwise, say 'NO,' kindly but firmly. (There's a lot of super advice on how to soften the blow in several posts here.) That way, you have a sporting chance of keeping the friendship (and the money).

Good luck!

pennyfox_2

No, don't do it. It will only damage the relationship with your friend and you run a risk of losing your hard-earned cash.

I recently took out a loan for a close relative. It made me feel depressed and it seriously damaged our relationship, even though he was paying it back. It is really not worth it.

Think about it - would you take out a loan for £5000 for yourself if you had a business idea you were really not sure about?

meknowalot-51

Your friends son applied for a business loan and was turned down.Then he tried banks and different companies and they all TURNED HIM DOWN.They all turned him down as he is considered high risk,this means there's a good chance he will not pay the money back as agreed.When this happens a few times some people apply for bankruptsy or like your very good friend an IVA.This family could do with some education on budgeting.My advice to you is stay well clear,do not lend them anything.

sarahlouisexo

No, you stand to lose too much if it all goes tits up, especially if you don't even believe in the business plan, or business man!

Plus is it even really worth the worry and stress you will go through?