Have / Would you borrow or lend money to/from a friend for a business?

[Spookwriter]

Given only the details contained within the original post
there is insufficient information to form a reasonable yes or
no.

For many people, thirty thousand is a hugh amount of money.
But for others, maybe that thirty thousand isn't so great an amount.
That is certainly something to consider. How much is actually at
risk? And in that same line of thought, where would this money come
from? Would it result from raiding another account, loss of interest,
withdrawal penalties? Certainly important to consider the position of
the person who now has the money. How much would the total loss of
the money change their financial future?

Then I would have to consider the person asking for the loan. Not as my
friend, but in the line of business. How much faith would I have in them to
succeed? Why does this person consider now as the right time to open a
new business venture? Are there other similar business in the area?

It's tough out there. Many things to consider. Take a hard look at the plan.

But if I believed in the person, their chances of success, I would do it. Might
want to be a partner, but I would be there.

If it looked shaky...walk away.

 

[MeatKing]

My sister lent me 25 000 once to buy a house cleaning bissness from her, the the cost of buying the franchise, plus it came with a full clientele and employees. She all paid up, I did a few times have to ask her to wait till the 2nd or 3rd to cash checks dated for the first. (Just to coinside with the way income came in) Since the buss, was orginaly hers, she understood the math, I was working with. And was really good that way!! I would not have been able to get a loan for this "bad credit at the time" She belived in me, she got paid back in full, on time.. The last cheaque wrote to her, she mailed it back to me.. (I would write cheaques for a year at a time) so I was waiting and waiting for the money to come out've my account, and there was a card in the mail, lawyers signed off, paid in full. (we got a lawyer and wrote up, the right papers)
We are still best of friends..

 

[annie3001]

that is too much money to be playing with. a few thousand, yeah, not 30,000. jmo.

 

[easttxchick]

Depends on the friend, some friends, NO WAY, others, yeah, we've done it and been paid back VERY quickly.
Guess I like to think they would be there if we needed them, too, and I have no doubt, they would.

 

[chrisf]

If they cant "borrow" it from a bank, they have no business starting a business. Banks want to see a business plan, and a very well put together one at that.................................................................................Chrisf

 

[suzettex5]

Quote:
Banks will NOT loan someone $ for a start up business. Unless there is ALOT of colateral. If you were a bank, and Joe Schmoe told you- 'Hey, I have no money, no nothin' but a great business plan, but I'd really like you to risk your $ on me, even though I have zero garuntee of success. But, I promise I'm good for it". I imagine no bank in the country would stay in business very long if they gave out loans to people like that. Like I said earlier, 90% of all new business' fail in the first year. Banks know that, thats why they wont do it.

If you start very small, get some purchase orders, make an actual profit, then MAYBE (in this economy especially) a bank will give you a tiny, small business loan.

 

[chickencrazymamahen]

Quote:
x2

 

[GeneJordan]

No!!!

You are better off just giving them the money, and residing yourself to never seeing the money (or them) again...

 

[redhen]

If you cant afford to lose the money.,.then NO.. dont do it.
And if you do do it..get a legal contract written up..for that amount of money.

 

[The Chicken Lady]

Quote:
Very good post. I agree 100%.