DP wants to loan money from me

Yes I think you would. If he has a viable business then I don’t buy that he could borrow from a bank. He’s telling you porkies. And you’ve only known him 3 years, that he can’t ask anyone with whom he’s got more credit as it were speaks volumes. Don’t do it.

And I’d also be tempted to run a credit check on him

So he's barely earned any money for a year? There is a saying that a business which doesn't pay you enough to live on is not a business its a hobby.....

As PP have said no invoices or their payment terms are too complicated for a bank to understand. Don't lend him a penny and don't feel guilty if he loses the 'business '.

I closed a 'luxury' business thanks to the COL crisis - it went from paying its way to losing money so I sold my stock at cost and closed down. It was upsetting but that's business. At the moment businesses, pubs, restaurants, shops etc are closing down at a vast rate, but more will open again when the economy is better, and it has always been like that.

Absolutely No.
I've been self-employed for years now. In the 1st few years I hit some rough patches. I got off my backside and did agency work whenever that happened. It was Hospitality and I hated it. But needs must. I didnt expect anyone to prop up my business and Id have felt embarassed to ask.

He’s struggling with depression due to his situation but also not able or willing to support me in ways I need, like emotionally and physically, because of this
He has lied to me about his financial position in the past

It'd be goodbye from me. The man's a liability what do you want to be with a man like that for anyway? He'll just drag you down.

"He has lied to me about his financial position in the past. Exaggerated his income and net worth to impress me at the beginning."

You've pretty much answered your own question.

Look at his accounts on Companies House, they are easily found.

And I think you'll find the truth about this business.

He's bullshitting you - and blackmailing you - to get his hands on your money.

Cut off the money supply, cut off the sympathy - and cut him off. Because he's going to bleed you dry emotionally and financially.

Unless his client is someone like Tesco (who have awful payment terms) it's unlikely that it takes 3-6 months to be paid by every client. I do have some that pay slowly but that's because of bureaucracy. I could still go to the bank and get a business overdraft if needed.
I really wouldn't get involved.

Financial institutions assess the risk and if they won't loan then it's because they think he won't be able to repay. As we always hear on MN, only loan if you can afford to not get repaid. If you do loan him money, make sure you have a written document showing the loan amount and your terms for being repaid. Get him to sign and date it.

Do you have children?

You won't get your money back.

If a bank thought they would get their money back, they would have lent to him.
The fact they won't says it all and the have far better methods of assessing risk than you.

These are all lies.

Only lend him what you are prepared to never get back. Personally for me that would be nothing at all. His business is not viable and he should let it fold and get a job.

You need to change the title to 'dp wants to borrow money from me' as your current title is causing confusion hence the votes.

I can't believe you have to ask 🙄

No one knows if the invoice will even get paid on time. Never bank on money you (general) haven't got.

I wouldn't lend him any money. But then I wouldn't trust him at all since he has lied about finances.

Can I suggest that if you plan to loan him any sort of serious money, before you do, pay for an accountant to go through his books. Also make sure that you have a repayment plan done up and that he agrees with that repayment plan.

Lenders will not lend where they know there is absolutely no chance of getting money back.

Therefore he is absolutely broke, has nothing worth anything, they will not touch him. So nor should you.

What he needs to do is get a job, earn enough to save sufficient to re-start his business, with a 'float' and credit to carry him through and as a ltd co. where he can pay himself a wage that he lives on, rather than treating company income as personal funds and spaff the lot the moment it hits his account.

How can the invoices be so compliant that a bank can't deal with them? 🙄

Don't lend the money! What would he do if you weren't around?

If nobody wants to loan him money, it's because he either doesn't repay it back or takes the piss repaying it back.

Don't do it.

This! If you’re his last resort then it’s not looking good for his business.

Yes, this.

Doesn't make sense to me about the invoices. That's such a long time. Would be impossible to budget.

Come on. You can't possibly be this naive? Everything you are saying he's told you absolutely screams con artist

Why do you even have to ask. Run a mile