Help Drafting Handloan Agreements

Lramchalluri on 27/11/2015 - 14:09

Hi,

I want to lend some money to one of friend to start his own business. On the face of it he is a very good guy and I don't have to worry anything about it. He is going to return the money back in 6 months.

I do want to help my friend here, but the amount is large enough that I can't afford to not have it back.

So, what are my options to safe guard the return. I am happy to take a legal opinion if I have to but I am not sure as to who would be able to help me in this situation.

So, what I want is

1) What can I put in place as an legal agreement for getting my money back
2) If I need to take legal help to either get an understanding of the process or to get help in drafting an agreement, who do I need to talk to.
3) if you know if anyone here in Canberra please do share their contact details.

Thank you very much.

Financial

Comments

  • ozhunter on 27/11/2015 - 14:30

    Do you know how is going to get money to pay you back? I hope you're not relying on his business profits.

    I'd go tell him to get a personal loan.

    I guess the fact that you want a drawn up agreement is that you are willing to go to court if it ever comes to that.

  • blitz on 27/11/2015 - 14:42
    +4

    You are a good friend. But my advice is to never mix business with pleasure. You will destroy one or both.

    • ESEMCE on 27/11/2015 - 14:52

      Doubly so when you can't afford the loss

  • berger on 27/11/2015 - 15:42
    +1

    is there a reason he cant get a personal loan? he can claim back the interest paid on the personal loan if its business?

  • ramchalluri on 27/11/2015 - 15:52

    I appreciate all the responses and concerns. I have thought through all of this before and I am obligated to give the money. Thanks "oscargamer" for your response. I have checked the site and it will help me draft the document and they even have the service to proof read the document.

    My question still remains. Does anyone know, who should I be contacting in terms of legal advice in drafting and legalizing the document. If you know of someone in Canberra that is even better.

    • ESEMCE on 27/11/2015 - 16:21

      You want to be listed as a Primary Creditor (I think is the terminology)
      So that in the event he declares bankruptcy, you're first in line to be paid out.

      I'd start with any lawyer… they will be able to point you in the right direction if they can't help themselves.

  • Baysew on 27/11/2015 - 16:18

    How much money are we talking about here ?

  • altomic on 27/11/2015 - 16:49

    what does your friend have as collateral?

    • Bonsaichop on 27/11/2015 - 18:13

      Two legs with no broken bones.. yet ;)

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