Friend asked dh for 2 year loan

I just twigged that this guy is ‘in finance ‘. Whatever that means.

however, in most finance jobs, going bankrupt means automatic disqualification/disbarment.

does he not have home equity he could borrow against? If not, why not?

Now he is targeting his friends because he knows that he’d struggle to repay any loans. Assuming any financial institution would be prepared to even consider lending him money.

It doesn't sound viable, you have to put your foot down.

I'm really struggling with being signed off work but when childhood friend offered me money this year I said no. It didn't sound like a good idea.

If I could afford to I'd help but with an solid installment plan in place, written agreement signed and make it clear legal action will be taken if the money isn't repaid. I'd also want him to tell his wife before agreeing.

I've learnt the hard way not to lend money to family or friends unless in extreme situations, you'll never see it again in most cases. I'd be very cautious.

Everything about this is wrong. Tell his wife.

I'm sorry but he is a fool.

That's factually correct based on what he is doing.

He's giving money to a man who works in finance who cannot raise the cash in any other way.

Just how many banks, credit unions, credit card companies, alternative lenders are there in the UK?

And if he works in finance, he will have any understanding of how they work and should be able to negotiate debt better than the average person!

And he can't get the money from any single one of them? Your husband is the only one who thinks he's a good bet?

Come on now- your husband is beyond foolish, naive and irresponsible to put this man ahead of his family.

There's no irony it - you mixing up irony woth stupidity.

Also, the wife doesn't work? I'm sure she could get a job that pays the 25k he so desperately needs. But he'd rather put out your family (and at least the other one he owes to) than have his own family take some responsibility for THEIR spending?

If he cannot borrow from the bank, his situation is far, far worse than he is letting on. He has probably maxed out credit cards, and is clearly lying to the wife about everything.

I’ve told dh if he defaults on one payment and my friend tells me they’re going away, I’m telling her. It also pisses me off that he asked dh not to tell me, which is lying to his wife.

Why wouldn't you just tell her now? He's clearly in serious financial trouble, which means she is too! Even if he makes the re-payments (although doubtful) doesn't necessarily mean all is ok and that this womans home and her childrens security isn't at risk. For all you know, he could be borrowing off someone else to pay your DH back!

Never. Loan. Money.
You are not a bank.

Surely this is a joint decision? That's what would piss me off, DH agreeing to loan the money without discussing with me first.

Unless happy to kiss goodbye to £25k forever. Don’t do it

I’ve said before on another thread. I did a loan for a family member as they had bad credit

they paid it for a year. Then lost job. Got ill (own fault) and now on uc and Havnt paid loan for a year and guess who pays me. Me !!!

as in my name

I will never loan money to any friend family or anyone ever agaib once this sodding loan has Beenpaid off. I have 4yrs to go 😡

if they say paying it back in 2yrs how will they afford the £2k monthly payments

What MylittleNest said

I do however wonder if you asked the friend to show you 12 months bank statements proving the money was paid back on time each month what you would see.

I wonder why the friend wants the money back all of a sudden.

Why won’t a bank lend him it?

But no I wouldn’t lend it to him, not unless I was prepared to not get it back. He’s clearly a liar - he lies to his wife - you 100% know he’s prepared to lie to his wife daily and he’s happy to live as a liar, booking holiday etc. Why does your husband think he’s more special than her?

he could be gambling etc many possibilities

'Never a borrower nor lender be'
Do not do it, I can guarantee he will have other debts racked up. He needs to sort the problem not the symptoms ie not how to get a loan, but to stop living an unsustainable lifestyle they can't afford. Is the loan with interest ? I bet the first friend he borrowed off has called it in because he's defaulted on the payments.
And how is he going to set up a dd for regular repayment without wife seeing bank statements etc.
I'd tell her if I were you.
This loan will be the last you see of 25k snd the friendship...and iam speaking from experience not 25k but 7.5k

If he's been paying this other friend off in installments up until now and the friend now wants a lump sum of 25 grand - then how the hell much did he owe him in the first place and what did he use all that lump sum for?

Personally I think this story is bullshit. There is no friend he has to pay back -because just how many friends does this guy have willing to lend him 25 grand plus? This is all very fishy and I wouldn't touch it with a barge pole.

I think it’s fine to lend a friend money if he thinks he’ll get it back. But he should get it in writing and he needs to tell his wife.

at the end of the day it money from his business not I assume from the family pot.

It’s fine to give him counsel on what you think he should do but at the end of the day it’s on him.

Finance?
Playing the stock market?
Lots of losses for gamblers/investors recently.
Its a bloodbath out there for a lot of them.
Even the most conservative have been badly hit.

A lot of guys in Finance play the stock market because they THINK they have special powers.

Its fancy gambling often, and just as lethal.

So many things, many of which have been said.

1. If the friend can't pay back the other friend, he will not be able to pay back your husband.
2. I don't see how your husband can just take the money out of his business. Even if he owns the business, it is not that simple. It is not his personal money to do with as he pleases. He should consult an attorney.
3. Trying to hide this from the wives is shady and unethical and deeply selfish on the part of the friend.
4. Your husband may be worried about upsetting the friendship, but he should be more worried about upsetting the marriage.
5. This friendship is going to end on worse terms if he lends the money. Much worse.
6. He wouldn't need to borrow so much if he was honest with his wife and she cut back on their lifestyle. How are you going to feel when she talks about her new handbag or the Christmas gifts they bought, etc? That will be funded with YOUR money!
7. The friend has made it your problem when in fact, it is his.

Also, OP, if this friend has a grand a month free to make the repayments, then where is he taking that from? It’s not just extra left over from his wages because if he had that much to play with, he wouldn’t have needed the loan in the first place? If your DH is Paul, who is the Peter he’ll be robbing to pay him?

No chance.

If he's coming to friends for a loan, its because he can't get a loan anywhere else. If he can't get a loan anywhere else, then he's a credit risk. If he's a credit risk, the chances of you seeing that £2k again are minimal.

Just no.

ESPECIALLY if he's hiding it from his wife.

Is it legal for him to draw on his company funds?

Would the loan count as directors drawings that DH would then be obliged to pay tax on in his next tax return?

Or will it be a loan made by the company, in which case, there needs to be a contract protecting the money plus interest charged for his company in case a future financial auditor questions what the money is for and why it hasn’t been repaid (with interest, upon which tax would also be due)?

Honestly - DH is being very very naive - at least encourage him to speak to his accountant/auditor before releasing the funds so that he is fully aware of all the legal and tax implications.

ETA I see you are a shareholder/director… this implicates you too. As the brilliant post upthread states, this is all very dodgy.

Just because you don’t work it’s still your liability your dh might be generous but you are a partner so have as much say in this. Even families would be hesitant with this situation especially if there not going to change the way they live. Why are you surprised he didn’t want you to know if he can lie to his own wife he’s not going to care about you if it’s just between the men if something happens to your dh he wouldn’t have to repay you. I would be saying that’s a no from me I’m out.

Wife doesn’t work and they go on quite a few holidays a year

She doesn’t work and he wants to borrow money off of you!!
I’d be absolutely raging.

I understand the pressure that friend is under but it’s tough, he needs to tell his wife and adjust their lifestyle/she get a job until it’s paid back.

He wants to maintain a lifestyle which he just can’t afford and it’s not fair that DH bails him out because both him and the wife don’t keep a close enough eye on their finances.

If DH wants to risk lending him the money out of his own business, then that’s his choice but id be telling him to tell the friend to tell the wife first.

Who’s going to report him? You’d never have a peaceful night’s sleep again!

There are 3 giant red flags waving in this scenario.

1. this man is extremely unlikely to pay back the loan in a timely fashion. If he has taken loans before it is a pattern. He should not be trusted. Did anything even get put in writing?
2. your husband never should have agreed to this without talking to you first. If the money hasn’t transferred yet, I would not let this go.
3. most importantly, you are complicit in this man committing financial infidelity. How would you feel if you found out your spouse had secret debt?

The friend asking for you not to be told is outrageous.

There is absolutely no way I wouldn't be telling his wife.
I would also be telling her that I was very upset and it had caused an argument because her husband wanted both women kept in the dark.

Deeply disrespectful and misogynistic of his friend.
He knows your husband is a mug, that's why.

No way I would be letting this fly.
Highly highly unlikely that money will be seen again.
The friendship will be damaged as you will understandably not want to be around him going forward.

Spell all this out to your husband, plus the tax implications, the flat etc.

He hasn't thought this through.

Oh and god knows what shit he is up to if he is happy to lie to his wife.

As for the tears? 🙄
Wouldn't trust him as far as I would throw him.

My jaw dropped at my friends BIL's gambling coming to light 2 years ago.
He'd been juggling for years and years.

I will NEVER be surprised again.