2007-03-13 05:42:02 · 13 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Write in memo section "Personal loan to John Doe to be paid in full by xxxxdate with 10% simple interest from loan date to payment date"
2007-03-13 07:08:58 · answer #1 · answered by xxx 4 · 1⤊ 0⤋
First of all, recognize this as a gift as anyone needing to borrow money from a friend rather than a bank has a history of not paying back loans. A simple step you should take to provide some protection and legal recourse would be to write up a simple promissory note it can even be in handwriting and on a piece of normal paper...nothing fancy: make sure to include:
1. The legal name/address of the lender and borrower
2. The loan amount
3. The terms: date of the loan, interest if any, re-payment schedule, collateral if any etc.
4. Date the document
5. Go to your bank with the borrower and have your signatures notarized.
6. Write out the check and in the memo write loan to (name of borrower): promissory note dated ______
Keep a copy of the check and the promissory note and when the check clears your account ask the bank for a copy of the front and back of the check so that if needed in the future you can easily prove that the funds were received by the borrower.
2007-03-13 05:54:02 · answer #2 · answered by SmittyJ 3 · 1⤊ 0⤋
Put a note on the memo that it's a loan for the amount stated in the check. Take it from a person who loaned so many friends some money, it's not always a good idea to loan money to a friend cause it could destroy friendship.
2007-03-13 05:54:14 · answer #3 · answered by J J 2 · 1⤊ 0⤋
just make sure this is a good friend before doing this. This is a quick way to cause problems or loose a friend. But the best way to do this is to write on the check loan for (name). Then I would suggest you type up a letter stating the terms and conditions of the loan and have your friend sign it. This would make sure if anything would happen down the line, everyone would know this was a loan and not a gift.
2007-03-13 05:47:52 · answer #4 · answered by aaron b 4 · 3⤊ 0⤋
Write For: loan on the bottom of the check, and make him sign an agreement to pay you back. If it is a large amount and you really want/need it back, specify a certain amount of time. I have some close friends that I would not make do this, but I have been burned in the past. If you don't trust them, its best to have the agreement.
2007-03-13 05:48:03 · answer #5 · answered by DizziDazi 4 · 3⤊ 1⤋
Put On the checks corner loan to be paid back make photo copy and a promised note to pay you back Good Luck
2007-03-13 06:02:04 · answer #6 · answered by pattibcacl 6 · 1⤊ 0⤋
Your only legal recourse should a dispute arise will be contract. Just writing on a check is not concrete enough. You will need a witness for verifying the memo was stipulated and presented at the same timeframe the check was issued. A contract is better, with both parties signing and both parties receiving a copy.
2007-03-13 05:53:46 · answer #7 · answered by Anonymous · 1⤊ 0⤋
It would be better to draw up a seperate document. Simply writing loan on the check would not sufficiently protect you; i.e., when would it be due, what are the payments, is interest being charged, etc.
2007-03-13 05:48:22 · answer #8 · answered by Shawn F 1 · 2⤊ 0⤋
Dont you know you never do busn. with friends and or family cardinal rule #1!!! Now if you plan to still loan money to your friend dont expect to get it back. You could end up loosing your friend. Let him or her find a different way.
2007-03-13 05:47:11 · answer #9 · answered by Anonymous · 5⤊ 0⤋
In the memo section of the check on the lower left side, write "loan - to be repaid". Simple as that. Make a copy of the check. Make your friend sign a promissory note.
2007-03-13 05:45:29 · answer #10 · answered by ☺SDgurl☺ 3 · 6⤊ 1⤋