Want to borrow against redundancy

reekishawnee

Hi,
Excuse the bizarre post but I'm looking too borrow a fraction of my redundancy for a generous return to anyone wishing to help.    July 31st next year I'm being made redundant after 21 years service and subsequently will receive a well above average settlement that's already been decided upon (approx 100k).   So I'd like to borrow £1500 and happily pay back £2500 next year (much higher interest rate than any savings will account pay you.  Of course everything can be proved and I'm happy to sign any supporting documents that may  be required etc

Given the official redundancy notice made by my employer that's made borrowing via the usual routes very hard if not impossible as I have to state not only my employer also answer questions regarding future change in circumstances.   

Does anyone know of a social platforms or a solution that works help me with this?

Grumpy_chap

That all sounds very odd - please explain more.  How can any employer know that you will be made redundant in over 12 month's time?

daveyjp

Grumpy_chap said:

That all sounds very odd - please explain more.  How can any employer know that you will be made redundant in over 12 month's time?

It sometimes takes time for business closure to happen, especially if its a takeover/outsourcing situation.  A relative had 15 months notice of their redundancy.

reekishawnee

Indeed daveyjp.
Nothing odd grumpy_chap at all.

Company announced closure publicly last year actually.   Just Google Honda Swindon closure and you see for yourself.   Since then all the relevant topics have been discussed and concluded with the Union and all is set to close as I originally posted it.

McKneff

A million things could happen to you in the meantime which could stop you getting redundancy. 

Can you not borrow from a bank or get cash for a credit card if you are desperate

Grumpy_chap

reekishawnee said:

Indeed daveyjp.
Nothing odd grumpy_chap at all.

Company announced closure publicly last year actually.   Just Google Honda Swindon closure and you see for yourself.   Since then all the relevant topics have been discussed and concluded with the Union and all is set to close as I originally posted it.

OK - thanks, that explains things, so not 'odd' but not the immediate thing one thinks of when contemplating a redundancy situation. 

As for the borrowing, can you take the £1,500 on an interest-free credit card?

Oddly, with all the stuff that is happening, you are in a more secure financial position that those with a proper secure job right now.  Most don't have the certainty of a year's income followed by corporate settlement.

reekishawnee

Not so many things but I do get your point.   Redundancy programme is well underway with many staff already have left and with the rest leaving between now and July 21.   Having officially announced redundancy it's massively hindered borrowing legitimately as I did  allude too in theothe post.     

I appreciate this  unorthodox but it does benefit both parties, morso the lender given the return once they can become comfortable with it...

Mickey666

So you’re asking for £1500 now and will repay £2500 in a year’s time?  If I’d received such an ‘offer’ by email I’d be immediately thinking ‘scam’ and would delete it immediately!
What security are you offering the lender?
Why can’t you get simple bank loan or overdraft if you have £100k coming in next year?  I don’t see why your pending change in circumstance would count against a one year loan when you have a ‘guaranteed‘ means to pay it off in full.
Why can’t you get a credit card, or two?

Also, what is so urgent that you’re prepared to pay £2500 next year for only £1500 today?
All sounds very odd to me.

reekishawnee

Mickey666

I do totally understand what you're saying and I would be very naive to think others wouldn't do as well.    No bank or financial institution will lend me money knowing in just over 12 months time I'm unemployed irrespective of my redundancy package, just won't happen (you call your bank and ask a question in principle and you wouldn't even get to apply)   Obviously I have tried these avenues and even the sub prime lenders after interested!

It's certainly no scam and anyone interested would not only have to be comfortable and clearly would undertake due diligence to a point.   Confirmation of the facts etc and so on
to their satisfaction..

Given the unorthodox nature I just couldn't expect someone to help me out without the appropriate reward.   To expect somebody to risk their money offering a smaller return isn't going to cut it so therefore an appropriate reward is an order.    You wouldn't gain that amount of interest in 13 months or so  would you?     So that's why I made that offer...... If I posted  it at the regular high street interest rates it would attract even less interest than this, wouldn't it.     

Grumpy_chap

You are asking for a small amount of money in the scheme of things, so I struggle to understand how it will make the massive difference that will be worth offering such a return to the lender.

Can you not get a loan by providing some security?  Pawn or log book loans?  Or pay-day loan?

Given the level of redundancy you stand to gain, your monthly salary must be at a reasonable level.  Can you live like a hermit for a month and, hey presto, £1,500?  We've all been restricted by lock-down, so does that help the living like a hermit plan?  OR, use the money that maybe you would have spent on your summer holiday that you can't now go on?

reekishawnee

Hi,

I do appreciate you taking the time to reply back to me and your advice but I've exhausted all my borrowing options.   Lenders simply won't lend to me knowing my employment situation is changing in 12 months time and cannot take redundancy as collateral.   The redundancy payout is an enhanced one and I have over 20 years service, my salary is a bit over the average wage but not  much.

Lockdown has caused some financial problems and i could really do with some extra cash hence why I put my offer out there.      

It wasn't so much I was asking people here directly to lend me the money....... I thought maybe there was some peer-to-peer social landing platform out there or something similar to crowdfunding but where are people wanting to borrow can interact with people willing to lend, maybe making their money work better than if it was just in a saving account & at same time cutting out of the financial institutions and benefit in themselves (both parties).     If someone can get comfortable with the idea then they benefit with an extra £1,000 in 12 months time and I benefit obviously by having the money lent to me.