Julia
In Memoriam
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It's not. It's dead set right.
Thanks Julia for your comment
I sometimes wonder if my post's make sense
I just feel with all the posts advising against
and from personal experiences
This young fella(if he is young)could be making a big mistake
So if the Boss is Trustworthy there will be a 20% profit
If he is not what is the profit??????????
Cheers
Des
Thanks guys but I already gave him the loan before my OP. Just wanted to check with you guys to see if it was a good idea. Obviously should have checked before giving the loan, but I have a signed agreement from him and we have quite a bit of work coming up (new contracts) so should be ok, but reading all your responses I'm a bit worried now. I'll let you know how it goes. He's actually paying me back in monthly installments so I'll have an update in a month. Cheers
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I would suggest that you learn to tell the truth in future, it may even get you out of being a security guard and into a position of trust and respect !
People on here are making genuine responses to your initial post and trying to be helpful, you and your boss are obviously well suited and both of you seem to have the ability to mislead.
Good Luck
Mods:- this whole thread should be removed imo.
I would suggest that you learn to tell the truth in future, it may even get you out of being a security guard and into a position of trust and respect !
People on here are making genuine responses to your initial post and trying to be helpful, you and your boss are obviously well suited and both of you seem to have the ability to mislead.
Good Luck
Good post Boggo it is disappointing that the Young fella has already made his dision Before advise was given
And a lot of posters spent the time to advise
hope all goes well for him??????????
Lets see if he post,s in 1 months time
Cheers
Des
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Hey, lighten up. $10k is cheap for a good education.
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dzek, you've only known this person for a very short time!!!
Did he perchance volunteer to show you a copy of his most recent report/s from the relevant credit reporting agancy/ies?
Even if he did, there may be other trusting people like yourself lending him money in recent times.
He may have a lot of work coming in, however, this will be small comfort to you as he's probably already overcommitted elsewhere. The fact that the banks can't offer him additional credit/overdraft facilities is a strong indication that this is so!
Furthermore, you've used his accountant to draft the written agreement (most unwise!)
Did you verify the professional standing of said accountant? Do you know the meaning of the phrase "conflict of interest" ?
Who were the witnesses to the signing of this document? What clauses were included? Will this document have legal standing in the event of default (i.e. your boss doesn't pay and you have to pursue him for recovery of the debt)?
At the very least, one would be well advised to involve their own solicitor/lawyer in the preparation and signing of such documents!!!
If you lose your job you'll probably need your boss to give you a good reference for future employment. Is he likely to give you a good wrap when you're pursuing him for the money that he owes you?
Do you realise that In the event of unemployment, Centrelink may (depending upon interpretation) treat this debt as a liquid asset and make you wait longer before they start paying your fortnightly entitlements?
@Boggo, there has been a lot of great advice given in this thread, and I believe it may prove to be valuable to future subscribers to this forum as dzek's situation is far from unique. I for one, hope that this thread remains, let's overlook the deceitful bathwater for the sake of the babies (insightful responses).
@Tannin, spot on! I believe this is one of those occasions where life experience is likely to prove to be the most effective teacher! Much as I wouldn't wish bad debts upon anyone, some people will only discover the value of prudence after completing a costly semester in the "school of hard knocks". It may seem harsh of me saying this, but, based on dzek's posts, I believe that if the boss acts with integrity and willingly honours the debt, he will, in effect, have denied dzek a much needed learning experience.
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Don't close the thread, I'm interested to hear the outcome. Could make a good story.
Keep the updates coming through.
Keep the updates coming through.
+1
One doesn't want to be too negative about this, particularly in light of the fact dzek has already made the loan. But its hard to see this working out well.
Dzek, ask yourself this: are you getting paid for the work you're doing for him? Presumably yes. Where is that money coming from? From you! Do you see what's wrong with this picture!? Likewise, the monthly 'installments' are also coming from you.
But you're committed now, so the question is where to go from here.
First, be very much on the lookout for this guy asking for more money. This request is likely to be accompanied by things such as :-
- If you don't lend me more, you'll lose your $10k.
- You need to lend me another $5 to save your $10
- I'll double the interest if you lend me more
- I'll give you a percentage of the business
- I can't pay you your wages unless you lend me more
- Can you borrow it from your parents then lend it to me
- If you stop working for me, I won't be able to pay you back
Any of these things should cause you to chalk your $10k up to a leaning experience and run like hell.
Another thing to watch out for is any late payroll or bounced cheques. Again, run like hell.
You don't need to call him names, you just need to tell him you don't have any more money to lend, nor can you get any, nor can you afford to work without getting paid in a timely manner.
If it does go pear-shaped, then maybe you can put a debt-collector onto him. If not that, at least turn up to the local courthouse and get a winding-up order on his business. It costs you nothing, it's unlikely to yield any result, but it's good sport.
Also, if the paperwork is up to scratch, you might be able to claim the $10k as a capital loss and knock it off any capital gains you have or will have (but get proper advice on this). So at least that's something.
But in the meantime don't go around glowering at this guy and calling him a bastard, otherwise it'll all become self-fulfilling.
Expect the best while preparing for the worst. With any luck, he'll turn the corner and you'll make your 20% and breathe a sigh of relief.
Just don't do it again
Sdajii
Sdaji
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This has been a really interesting thread. Lots of people have very much the same advice and experience (mine matches too, so I won't add more of exactly the same).
I would love to see the paperwork. You'd laugh (if it wasn't you who signed it!) if there was a clause along the lines of 'this money is to be used in the business and if it screws up that's too bad for both'. It may alternatively/also have stupid clauses along the lines of 'if the money can't be repayed in time a delay can be arranged by increasing the interest...' or some such nonsense. The fact that this guy's own accountant drew up the contract should be sounding the alarms and flashing the red warning lights.
Assuming the boss isn't absolutely 100% deceitful (perhaps likely) I do think this boss is figuring that the business needs some capital and it's a risky proposition. Invest the money, if it goes well it'll be wonderful, if it goes bad all the money is lost. In this situation he is simply risking someone else's money rather than his own. It's a bit like going to the casino, betting someone else's money on red, if you lose you only lose their money (none of your own) and if you win you still take 80% of the winnings. If I could game like that I'd spend a couple of years at the casino then retire a billionaire.
I think that's a great point. Some of my biggest life lessons have involved losing thousands or tens of thousands of dollars. Sometimes, especially when you're young, that's the only way you're capable of learning. If you can look back at the situation in a few years and say that you've benefited more than $10k from what you learned, it'll be worth it even if you lose your money. It's possible that this person would actually be worse off if he ended up getting his $12k, a bit like lots of people would be worse off if red came up on their first spin of the roulette wheel - to a lot of people this apparently proves that a bad risk is a good investment, so they become programmed to take that risk again.
I'd say I feel bad, but I can't really say I'm much of a fan of bouncers
:fan:
I would love to see the paperwork. You'd laugh (if it wasn't you who signed it!) if there was a clause along the lines of 'this money is to be used in the business and if it screws up that's too bad for both'. It may alternatively/also have stupid clauses along the lines of 'if the money can't be repayed in time a delay can be arranged by increasing the interest...' or some such nonsense. The fact that this guy's own accountant drew up the contract should be sounding the alarms and flashing the red warning lights.
Assuming the boss isn't absolutely 100% deceitful (perhaps likely) I do think this boss is figuring that the business needs some capital and it's a risky proposition. Invest the money, if it goes well it'll be wonderful, if it goes bad all the money is lost. In this situation he is simply risking someone else's money rather than his own. It's a bit like going to the casino, betting someone else's money on red, if you lose you only lose their money (none of your own) and if you win you still take 80% of the winnings. If I could game like that I'd spend a couple of years at the casino then retire a billionaire.
I think that's a great point. Some of my biggest life lessons have involved losing thousands or tens of thousands of dollars. Sometimes, especially when you're young, that's the only way you're capable of learning. If you can look back at the situation in a few years and say that you've benefited more than $10k from what you learned, it'll be worth it even if you lose your money. It's possible that this person would actually be worse off if he ended up getting his $12k, a bit like lots of people would be worse off if red came up on their first spin of the roulette wheel - to a lot of people this apparently proves that a bad risk is a good investment, so they become programmed to take that risk again.
I'd say I feel bad, but I can't really say I'm much of a fan of bouncers
:fan:
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I hope that the bluntness of my earlier posts to this thread haven't dissuaded you from giving the promised update. I am sure that many ASF'ers will be interested to read the next exciting instalment of your entrepreneurial adventures.
The absence of further advice from yourself is likely to result in many forming the opinion that things didn't quite go according to plan.
I do hope that you'll let us know either way. Your willingness to share these episodes of your new found career (as a financier) may serve to enlighten others. Your candidness could potentially save future visitors to this thread from a similarly draining experience.
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