Lending money to friend - need contract template

wundress

Hi


Hope this is in the right topic.


I'm buying a laptop on behalf of a friend and she will be paying me back in monthly instalments.


I've been trying to draft a contract so we both know where we stand but I'm struggling with the wording and wondered if there are any decent templates for this sort of thing?


I want to include a clause that interest will not be payable unless my friend defaults or doesn't pay back full amount within the time frame. Basically I want it in as a scare clause. Got to cover myself!


Does anyone know where I could find such a sample contract? Google didn't come up with anything useful.

nomoneytoday

Why not just give your friend the laptop and save the aggro if it goes wrong?

Clive_Woody

Dear Friend,

I bought you a laptop, I would be ever-so-grateful if you would please pay me back within __months.

Failure to repay as agreed will result in the termination of our friendship.

I understand that you are unable to get credit to buy this yourself so the banks consider you too much of a risk but hell I'll give it a shot anyway.

Never forget...I know where you live!!!

Love and kisses
Wundress
x

umami

I found a draft on the internet when I lent my sister's friend some money.
Good luck.

dealer_wins

chun wrote: »

I found a draft on the internet when I lent my sister's friend some money.
Good luck.

All you need now is a consumer credit licence and your good to go

19lottie82

A "contract" is unlikely to help you if they stop paying. Only "lend" them the money, if you can afford (and are willing), to write the money off as a gift, if they stop paying.

wundress

Yeah thanks for the sarcasm that's REALLY helpful

I never ever lend anyone money but I found out she was buying a laptop through Bright house with 100% interest or some such crazy nonsense. She got accepted to buy through them with repayments of 50 quid a month.

She's set herself up as a photographer but doesn't have any credit history. She works part time along side her new venture and I know her spouse works too.

As I say, I never lend money usually but I couldn't see her be ripped off and she needs the computer for her venture.

End of the day it wouldn't kill me if she never paid the money back but I want something in writing so that there's no mistaking that this was a gift.

wiltsguy_2

before lending her the money/buying the laptop, ask yourself one question; Can I afford to lose £xxx if she does not pay you back, and how would it affect your friendship?

Just because the banks wont lend her money does not mean she wont pay you back, but the risk of losing the cash and friendship is on you.

The fact you want a contract prooves that there is already an element of doubt in your mind of being paid back and on time.

wundress

Yeah or go on Judge Rinder!

wundress

There's always doubt! I'm just trying to minimise the risk as much as possible. It's always best to have it in writing just in case. I'm a careful person like that. I also work in the legal sector so I know how these things can turn out even when both parties have the best of intentions.

wiltsguy wrote: »

before lending her the money/buying the laptop, ask yourself one question; Can I afford to lose £xxx if she does not pay you back, and how would it affect your friendship?

Just because the banks wont lend her money does not mean she wont pay you back, but the risk of losing the cash and friendship is on you.

The fact you want a contract prooves that there is already an element of doubt in your mind of being paid back and on time.

wiltsguy_2

wundress wrote: »

There's always doubt! I'm just trying to minimise the risk as much as possible. It's always best to have it in writing just in case. I'm a careful person like that. I also work in the legal sector so I know how these things can turn out even when both parties have the best of intentions.

it's also called human kindness-helping a mate out. I have loaned money to friends/family lots of times. it's your call at the end of the day and nobody knows how good the level of friendship is. I have friends i could trust with my life, also have others i wouldn't trust with the price of a snickers bar....