How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Aston Lawyer Your Own Question

Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10409
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
16368554
Type Your Law Question Here...
Aston Lawyer is online now

A friend wants to borrow about £20K to help his business as

Resolved Question:

A friend wants to borrow about £20K to help his business as his bank has withdrawn his overdraft facility for no good reason. I cannot afford to lose this money so is there a way we can come to a contractual arrangement that secures my money. I would want the money repaid with interest in a reasonable timescale
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.
Hello and thanks for using Just Answer.

My name is XXXXX XXXXX am happy to assist you with your enquiry.

The only way you can guarantee security is by putting a Charge on your friend's residential property or business property (if he owns the Freehold for either). However, this would only guarantee you your money back as and when either of the properties are sold, and would rank behind any Bank Mortgage he already has over either of the properties.

In short, if you do lend him the money, there is no 100% fool proof way of getting your money back within a fixed time period even if you have a legally binding agreement which a local Solicitor could draw up without too much trouble- unfortunately, if your friend is unable to repay you as promised, "you can't get blood out of a stone" so you would be stuck with pursuing him for the money.

From what you have told me, my advice has to be that, although he is a friend, business is business, and if you are only prepared to lend the money if you need it back, with interest, within a set time frame, that you really shouldn't lend. Even though he may have every intention of repaying it, if you are lending it to him for his business, there is of course no guarantee that he will be able to repay.

Please let me know if you require any further clarification.

Kind Regards
AL
Customer: replied 3 years ago.

Thank you for your advice. I know my friend has a big mortgage on his house but I don't know the extent of his business commitments. He has paid off his overdraft but that leaves him with little working capital. I suppose there is no other solution like becoming a business partner assuming that the business has a healthy set of accounts etc.?

Expert:  Aston Lawyer replied 3 years ago.

Hi Anne,

Thanks for your reply.

Even if you were to become a business partner, which is possible to do, provided your friend agrees, this would only give you a share in the profits, so if no profits were made, you wouldn't be any better off and as partner, you would also be liable for any business debts too, so I can't really advise this as a way of getting your money back.

Hope this helps.

Kind Regards
AL
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10409
Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
Aston Lawyer and 2 other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice