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

[SillyChicken]

NO... Not now, not for NO ONE, NOT EVER!!!

I tried to tell my DH NOT to co-sign on a truck for his "buddy" that could NEVER hold a job. But, he went behind my back and did it anyway.. Later I found out that my DH got the lease in his name and his buddy co signed.....(yes I wanted to KILL him). 1 year later, we find after they had a "falling out"... that his good ol buddy, hadn't made payments in several months, the interior of the truck was trashed... there were late FEES on top of late FEES. In order to save my DH's credit, we had to fork over several thousand dollars. I told my DH that we need to get that truck so we took it in the middle of the night. (at least he listened to me enough to have a set of keys for it). We had to take a loss as it was a lease truck. I told my DH if he EVER did that again I was not only leaving him , I would take him for everything he had!

 

[rowan1]

I loaned $50,000 to a friend who insisted we sign papers because it was the right thing to do. i got the money back on a payment plan like we agreed on. even though it worked for me, in general i think it's a bad idea. if you go through with it, absolutely have legal papers.

 

[TigerLilly]

My motto is, never loan money that you can't afford to lose. Plain & simple.

 

[Buff Hooligans]

Quote:
Yes, has the potential business owner asked a bank for a loan? If not, why? If he did, why was he turned down? That would be a good thing to know.

My gut instinct follows what others here have written. Things happen, to people with the best of intentions.

 

[australorpchick]

DH and I have an agreement that we will only loan money to or cosign for our children. No one else, including siblings or parents.

 

[teach1rusl]

I would consider making a legalized buisiness loan to a casual friend moreso than a close friend. With a close friend, I think I'd loan only what I was willing to lose/give away. I feel the same way when it comes to family - only loan what you're willing to give - going into it knowing there's a possibility it won't be paid back.

 

[NGT ANGL]

Never mix business and pleasure. Odds are it just won't work.

 

[key west chick]

Now having said that the other day, hubby is asking his boss for a loan to help with some housing issues we are having...