Lending money to a friend..how to keep a proof

Where to buy? Where can I find? How do I? Getting started.
biz_it
Posts: 112
Joined: Thu May 15, 2014 4:31 am

Lending money to a friend..how to keep a proof

Post by biz_it » Tue May 19, 2015 4:02 pm

Hi,

If a friend wants to borrow some money from me, Is the bank transfer proof enough or should I have a written agreement that he borrowed the money from me. Its not a very big amount but still want to know what is the normal practice here
We provide BI and Data warehousing solutions. Please visit www.aricrypta.com for further information

Lending money to a friend..how to keep a proof

Sponsor:

Finland Forum Ad-O-Matic
 

betelgeuse
Posts: 2621
Joined: Thu Aug 29, 2013 1:24 am

Re: Lending money to a friend..how to keep a proof

Post by betelgeuse » Tue May 19, 2015 4:08 pm

biz_it wrote: If a friend wants to borrow some money from me, Is the bank transfer proof enough or should I have a written agreement that he borrowed the money from me. Its not a very big amount but still want to know what is the normal practice here
Just a bank transfer out does not include the other party acknowledging the dept. Depending on the amount I would make the counter party acknowledge the debt (by for example moving one cent back and ack in the message). This only matters for going to court and the other party disputing the dept. You are unlikely to do this for small amounts, hence no need.


Rip
Posts: 5583
Joined: Tue Dec 30, 2008 12:08 pm

Re: Lending money to a friend..how to keep a proof

Post by Rip » Tue May 19, 2015 5:01 pm

If you want to be sure, written agreement, and also eventually written acknowledgment the debt has been paid back (if there is first one, the second is equally important).

Smaller sums with somebody I'd trust, I would not bother.


Upphew
Posts: 9910
Joined: Tue Apr 08, 2008 10:55 pm
Location: Lappeenranta

Re: Lending money to a friend..how to keep a proof

Post by Upphew » Tue May 19, 2015 6:00 pm

Rip wrote:If you want to be sure, written agreement, and also eventually written acknowledgment the debt has been paid back (if there is first one, the second is equally important).

Smaller sums with somebody I'd trust, I would not bother.
Smaller sums with somebody I don't trust, I would not lend.
http://google.com http://translate.google.com http://urbandictionary.com
Visa is for visiting, Residence Permit for residing.


User avatar
ajdias
Posts: 2471
Joined: Sun May 04, 2003 9:01 pm
Contact:

Re: Lending money to a friend..how to keep a proof

Post by ajdias » Tue May 19, 2015 6:07 pm

Upphew wrote:
Rip wrote:If you want to be sure, written agreement, and also eventually written acknowledgment the debt has been paid back (if there is first one, the second is equally important).

Smaller sums with somebody I'd trust, I would not bother.
Smaller sums with somebody I don't trust, I would not lend.
On the other hand, it can be a very expedite and cheap way to get rid of them :D


Upphew
Posts: 9910
Joined: Tue Apr 08, 2008 10:55 pm
Location: Lappeenranta

Re: Lending money to a friend..how to keep a proof

Post by Upphew » Tue May 19, 2015 6:25 pm

ajdias wrote:
Upphew wrote:
Rip wrote:If you want to be sure, written agreement, and also eventually written acknowledgment the debt has been paid back (if there is first one, the second is equally important).

Smaller sums with somebody I'd trust, I would not bother.
Smaller sums with somebody I don't trust, I would not lend.
On the other hand, it can be a very expedite and cheap way to get rid of them :D
!
Excellent point!
http://google.com http://translate.google.com http://urbandictionary.com
Visa is for visiting, Residence Permit for residing.


vedrancek
Posts: 3
Joined: Wed Feb 20, 2013 11:03 am

Re: Lending money to a friend..how to keep a proof

Post by vedrancek » Tue May 19, 2015 8:44 pm

If he or she is your real friend,why would you need proof?just my opinion :shock:


Rip
Posts: 5583
Joined: Tue Dec 30, 2008 12:08 pm

Re: Lending money to a friend..how to keep a proof

Post by Rip » Wed May 20, 2015 9:21 am

Upphew wrote: Smaller sums with somebody I don't trust, I would not lend.
Yeah (though I agree, Ajdias makes a point too :) ). I meant both conditions should be fulfilled. (Somewhere around 10 000 I'd probably draft a A4 even with a sibling (we are in good terms). It would just seem proper.)


biz_it
Posts: 112
Joined: Thu May 15, 2014 4:31 am

Re: Lending money to a friend..how to keep a proof

Post by biz_it » Wed May 20, 2015 9:50 am

vedrancek wrote:If he or she is your real friend,why would you need proof?just my opinion :shock:
The tax department does need proof in some cases :) Even if you lend money to friends in smaller amount and eventually it sums up to 4000 euros, you will have to pay tax on them when you get them back...unless you have a proof that it was a loan you lended to a friend. Otherwise that is considered a gift
We provide BI and Data warehousing solutions. Please visit www.aricrypta.com for further information


User avatar
ajdias
Posts: 2471
Joined: Sun May 04, 2003 9:01 pm
Contact:

Re: Lending money to a friend..how to keep a proof

Post by ajdias » Wed May 20, 2015 10:56 am

re: getting paid back. Even if you trust your friend, it will make your life easier to ask your friend by when he or she will pay back and how.
Agreeing on a specific date will avoid many of those "just one more week or month" and will force the person to plan in advance.


biz_it
Posts: 112
Joined: Thu May 15, 2014 4:31 am

Re: Lending money to a friend..how to keep a proof

Post by biz_it » Wed May 20, 2015 12:22 pm

ajdias wrote:re: getting paid back. Even if you trust your friend, it will make your life easier to ask your friend by when he or she will pay back and how.
Agreeing on a specific date will avoid many of those "just one more week or month" and will force the person to plan in advance.
Agreed. Puts the mind at peace and does not harm to do it anyway
We provide BI and Data warehousing solutions. Please visit www.aricrypta.com for further information


legolas
Posts: 6
Joined: Wed Aug 26, 2015 7:55 pm

Re: Lending money to a friend..how to keep a proof

Post by legolas » Sat Sep 09, 2017 3:48 pm

I've got another question about a debt: what are the ways to force the borrower to pay back? (legal of course)

I've got a written proof of the debt: a promissory note signed by me and the borrower. If the borrower doesn't pay back after the date stated in the note what would be the best course of action (talking is not an option, two months of polite talking got me nowhere so far, though, I'd still like to resolve the conflict in most peaceful manner): contact some debt collection agency or police or whom?
Thanks in advance!


User avatar
Piet
Posts: 456
Joined: Thu Aug 13, 2015 3:45 pm
Location: Finland

Re: Lending money to a friend..how to keep a proof

Post by Piet » Sat Sep 09, 2017 9:14 pm

legolas wrote:I've got another question about a debt: what are the ways to force the borrower to pay back? (legal of course)

I've got a written proof of the debt: a promissory note signed by me and the borrower. If the borrower doesn't pay back after the date stated in the note what would be the best course of action (talking is not an option, two months of polite talking got me nowhere so far, though, I'd still like to resolve the conflict in most peaceful manner): contact some debt collection agency or police or whom?
Thanks in advance!
I guess you should start to write him a letter (bill) in which you summon him to pay up within 14 days because the mutual agreed pay back term has passed. State in this same letter that if no full payment of the debt is received within those 14 days, you will send him (or her) a last request to pay within 3 days, before you will turn the debt collection over to a debt collector, state also that all cost for debt collection will be for his account to bare.
Further state that you will charge legal interest of 7% on yearly basis, from that day, besides administration costs (postal costs)
Send this letter by registered mail which only he can collect (no one else can sign for it, even not with a power of attorney). Save the receipt from the postal office, and when he has collected the letter from the post office, print out the tracking results from the webpage where it states he has picked it up.

When he does not pick it up, drop it in his postbox yourself while video taping you putting the letter in his postbox (of his door!!!!not the outside one).
No you have served him with a notice to pay and after this time is passed you can hand over the proof and all copies of the contract to the debt collector agency (interim justitia for example).

Now wait and see..

At least that is what I would try 8)

Otherwise you maybe can tell him that your friends from your motor club are happy to help you out and pick up the cash for you at his place because you are so busy, they will come by his place next week 8) :lol: :lol:
If god would give us the source code, we could change the world
Image


legolas
Posts: 6
Joined: Wed Aug 26, 2015 7:55 pm

Re: Lending money to a friend..how to keep a proof

Post by legolas » Sun Sep 10, 2017 1:58 pm

Thanks @Piet for such a detailed reply! I haven't got his home address and if he decides not to tell it to me, is there a way to find it out knowing his social security code e.g.?


betelgeuse
Posts: 2621
Joined: Thu Aug 29, 2013 1:24 am

Re: Lending money to a friend..how to keep a proof

Post by betelgeuse » Sun Sep 10, 2017 9:38 pm

Piet wrote: I guess you should start to write him a letter (bill) in which you summon him to pay up within 14 days because the mutual agreed pay back term has passed. State in this same letter that if no full payment of the debt is received within those 14 days, you will send him (or her) a last request to pay within 3 days, before you will turn the debt collection over to a debt collector, state also that all cost for debt collection will be for his account to bare.
Further state that you will charge legal interest of 7% on yearly basis, from that day, besides administration costs (postal costs)
Send this letter by registered mail which only he can collect (no one else can sign for it, even not with a power of attorney). Save the receipt from the postal office, and when he has collected the letter from the post office, print out the tracking results from the webpage where it states he has picked it up.

When he does not pick it up, drop it in his postbox yourself while video taping you putting the letter in his postbox (of his door!!!!not the outside one).
No you have served him with a notice to pay and after this time is passed you can hand over the proof and all copies of the contract to the debt collector agency (interim justitia for example).
Using registered mail for payment notice is waste of money. It's not required.
legolas wrote:Thanks @Piet for such a detailed reply! I haven't got his home address and if he decides not to tell it to me, is there a way to find it out knowing his social security code e.g.?
http://vrk.fi/en/address-service
legolas wrote:I've got another question about a debt: what are the ways to force the borrower to pay back? (legal of course)!
There is only one way to force it. You take the issue to court and with the decision you can have enforcement collect the money for you.

https://oikeus.fi/tuomioistuimet/karaja ... kemus.html


Post Reply