# loaning money



## 67flh (Sep 26, 2011)

my wife works in a family owned business,everyones real tight and they all take girl vacations together which the owner pays for. now the owners a nice lady, flighty, but nice. my wifes came into a large sum of money lately and put it in her saving acct (i told her too). well the boss just hit my wife up to borrow 20,000 dollars, now she oply needs to borrow it for a week (so she said)and even offered us a couple grand extra for our troubles. i'm awful leary to do this, but it will probable hurt wifes relationship with her boss. could someone offer me some insite on how to handle this?


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## 2nd_t!me iz_best (Feb 28, 2011)

first off, she should have known something like this would happen and should have told no one.
i wouldnt do it.
she can tell the boss it was invested and cant be touched.


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## 67flh (Sep 26, 2011)

was kinda hard for the boss not to know, as it was a well know court case (in papers etc.) i told my wife to tell her boss that it's tied up in cd's. i feel nothing but bad things coming over this.


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## Shaggy (Jul 17, 2011)

For that kind of money you would absolutely need signed agreements to pay it back so you could later sue.

but loaning money to friends, bosses, and family is always the best way to end that relationship.


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## that_girl (Jul 6, 2011)

My grandpa always said (and he died with millions in the bank for my gramma off his investments) was:

"Never loan money to family or friends, unless you plan to hate them and cut them out of your life."

This is sooooo true. Even me, his own granddaughter, when I asked to borrow 3,000 (i hit hard times when I first became a single mom), he agreed but sent a promisory (sp?) note that I signed and it had the payment schedule in place BEFORE he sent the check.

I paid every penny back, even after he died. My gramma said I didn't need to, but a promise is a promise.

If you feel stuck with her boss, make it BUSINESS. People understand business. Draw up papers and payment plan. If they won't sign, they don't get the money. if they sign and skip payments, you can take them to court. A hassle, but may be the lesson your wife needs to learn.

That's fair.


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## EleGirl (Dec 3, 2011)

that_girl said:


> My grandpa always said (and he died with millions in the bank for my gramma off his investments) was:
> 
> "Never loan money to family or friends, unless you plan to hate them and cut them out of your life."
> 
> ...


:iagree:


Call your bank, they might be able to handle the promissory note part of it, with interest if the payback is not make is the stipulated month or so.

Maybe your wife could end up partial owner of the business if the boss defaults on the loan.


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## 67flh (Sep 26, 2011)

lots of good advice, my wife was thinking of making this a personal loan (papers signed ) rather than a business loan, as creditors usually only recieve pennies on a dollar when things go bad.the reason for needing the loan is, the accountant screwed up and paid end of month bills mid month and screwed the financies up. he has since been shown the door, wasn't his first screw up.


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## 2nd_t!me iz_best (Feb 28, 2011)

how about she become a partner in the business rather than it be a loan?


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## 67flh (Sep 26, 2011)

i just suggested that to her, about her being half owner. this lady had lent my wife money before, when we've been in a pinch,never asked about a repayment schedule or anything.but i'm talking about 500 bucks or so..she's talking 20 grand===hellva difference


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## 2nd_t!me iz_best (Feb 28, 2011)

67flh said:


> i just suggested that to her, about her being half owner. this lady had lent my wife money before, when we've been in a pinch,never asked about a repayment schedule or anything.but i'm talking about 500 bucks or so..she's talking 20 grand===hellva difference


this is true, there is a big difference between the amounts plus her boss had the option to pull payments from wifes pay if it came to that.
wife doesnt have that option.

i think the investment is probably her best option if she wants tom help her boss, especially if the business is stable.


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## 67flh (Sep 26, 2011)

thank you, i will agree that it's probable her best option..but it sure is nerve wracking.but there is still this nagging feeling iin the back of my head.this woman (boss) just moved into a 4,500 square foot house last year,cemented driveway 3 football fields long (not a overstatement). i mean,surely she must have this kinda cash laying around. but on the other hand when the economy first went into the tank and i got laid off, she put me to work,and trusted me completely. hell even gave me a set of keys for the place.


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## Coffee Amore (Dec 15, 2011)

Make sure the papers are drawn up properly. Don't do this yourselves because if you miss putting in some crucial clause, your wife's boss will have an out.

Next time don't share information like this with others no matter how tight you are with them. Once you come in to a large sum of money, you'll be surprised at how many people come out of the woodwork wanting a loan. 

Some loans don't get repaid so protect yourselves or you'll really regret giving anything to this boss.


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## I'mInLoveWithMyHubby (Nov 7, 2011)

NO! Don't do it. How selfish of someone to borrow such a great deal of money. This lady can get a loan or refinance on their home.

Don't expect to get it back. Your wife would be very foolish if she went ahead and lent her the money. I've borrowed money once to a coworker, never to be seen again. Luckily it was only a few hundred dollars, but I was a single parent of one child. I needed that money to pay my bills. 

20,000 is an absurd amount.
_Posted via Mobile Device_


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## SimplyAmorous (Nov 25, 2009)

67flh said:


> thank you, i will agree that it's probable her best option..but it sure is nerve wracking.but there is still this nagging feeling iin the back of my head.this woman (boss) just moved into a 4,500 square foot house last year,cemented driveway 3 football fields long (not a overstatement). i mean,surely she must have this kinda cash laying around. but on the other hand when the economy first went into the tank and i got laid off, she put me to work,and trusted me completely. hell even gave me a set of keys for the place.


Sounds like a really wonderful boss she has, has helped you in the past big time, this is what makes it really tough!! I can see your dilemma, makes it so much harder to say no.

You would think with a house like you just described she could get a Home Equity loan-easily to do this without putting you both on the spot. 

Me & my husband has never been rolling in the dough, yet some of our friends struggle much more financially & have gotten themselves in a few binds over the years. They have hinted kinda heavily they needed help at times......what we generally do is offer so much -(I think the most being $500) and give as a GIFT because I know it would be a real hardship for them to pay it back anyway, we could spare it and I didn't want to be worried about them paying me back on time. .....I know me, and I would be very upset if somene didn't keep thier word, we wanted to avoid that whole scenerio. 

So we felt good to help them out with "something" but never an outrageous amount . 

Generally our friends would help us in others ways , generous with their time, a helping hand to my husband -but money was not something they had. So we all help where we can help ,ya know. 

I personally would hate to win the lottery, you would have a ton of friends suddenly want to be chummy. 

It is a very sticky situation and it has the potential to destroy what was once a good relationship- if not handled in the right manner. 

Although if it was someone like her boss, who appears to have the high potential to pay back and even give more, someone financially responsible with a high paying job, I could see getting something drawn up - a binding contract - allowing her this loan - and making sure you are safeguarded for every dime. So long as she was not offended by that. If so, don't do it. 

Still a sticky situation though...what decision did you come too?


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## 67flh (Sep 26, 2011)

i thank you all for your suggestions. she did loan her the money, and made her sign personal loan papers(signed and notarised-sp)i totally put this up to my wife, as i feel for what she went thourgh to get this money that it's her money.we will fimd out here soon,how this is all going to end.


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## 2nd_t!me iz_best (Feb 28, 2011)

:/


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## anotherguy (Dec 14, 2011)

Yeah, mixing business with relationships is a recipe for disaster.

For family and friends, never EVER loan money. If you have it to give as a 'gift', by all means go ahead - but never expect to get paid back. Never expect to even raise the topic again. If they choose someday to pay it back - thats great too.

As for busness relationships, its also a bad idea. There are simply too many ways to mess it up and create problems - create hard feeling. If I was going to do it, I would look at it as an inversment in the company and maybe we can talk about part ownership if I was that interested in the survival of a business that is having cash flow problems - because face it: thats what this is. Note that is also putting the money at 100% risk, and you would need to buy into that idea.

'borrowing' 20K in this case is just too opportunistic. I wouldnt do it without checking the books and having a *lawyer* draw up a simple collateralized contract. Notarization doesnt mean squat unless it is legally binding. It is NOT as simple as just borrowing 20 grand - from a personal settlement because someone else things the money is 'available'.


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## Mella (Jan 18, 2012)

67flh said:


> i thank you all for your suggestions. she did loan her the money, and made her sign personal loan papers(signed and notarised-sp)i totally put this up to my wife, as i feel for what she went thourgh to get this money that it's her money.we will fimd out here soon,how this is all going to end.


Sounds reasonable and smart of you to defer to your wife on this. You'll just have to see how upstanding the boss lady is. Believe it or not there are responsible people in the world. We don't always have to be jaded in life. A promissory note should give your wife adequate protection if the boss turns false on her.

Upside is that if the boss lady does come through you have further cemented your relationship with her.


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