Hi ,

An acquaintance has asked me for some money ($25K) for putting in his business on which he would pay me some interest .

I wish to know what paper work I should do to protect my repayment and prove the transaction -- I would give a cheque but wondeirng if there s any format / stamp paper / witnessed statement which I can take to validate the transaction as a loan and the conditions of repayment .

Please advise .

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Fido.

I would advice you to think twice as sometimes money makes enemy - Better to have good relationship with your acquaintance than feel sorry later on. Thats my opinion and you have the choice. Sorry to interfere but i had seen so many examples thats why i want you to be careful.

Like they say 'Lending money to relatives or friends, gives them amenesia'. Again, talking from experience - Have been bitten one time too many.

I appreciate the response and the feeling behind it .. I too feel the same , but have decided to go ahead after careful consideration .

I request to know what paper works can be carried out to prove that there has been a loan transaction ... and if possible repayment conditions ...

In India , I believe a stamp paper statement signed by both the parties , witnessed and notarized should have been sufficient , but here in Canada , I seek awareness on the same .

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Fido.

The paper work is a must but any amount of documentation is no better than personal rapport. Even an easily liquidable collateral security is of not big help sometimes. This is from my experience in India. Never dealt with this kind of loans in Canada, but things should be somewhat similar.

With rock bottom rates of interest associated with investing in banks, idea of (private) lending is good; the one question you may want to ask is the why the borrower not taking advantage of these low low borrowing rates from financial institutions.

-Ben

now is not the right time to invest in business, since big big business house has failed due to bad economy. My advise is if you are so determined to go ahead, take lawyers advise and do everything legally and safeguard yourself. later on you will only have regret about lawyers fees but your funds will be safe.

let me tell you something about friendship. It is like mango, sweet from outside but when you come to the seed it is sour.

so be careful, since your money is hard earned.

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The best way to find yourself is to lose yourself in the service of others.”
Mahatma Gandhi

Quote:

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Originally posted by new york

I would advice you to think twice as sometimes money makes enemy - Better to have good relationship with your acquaintance than feel sorry later on. Thats my opinion and you have the choice. Sorry to interfere but i had seen so many examples thats why i want you to be careful.

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Chandresh

Advice is free – lessons I charge for!!