He was my coworker. I know him at work for years. It is unlikely he take money and run away.
He ask me a loan to scale up his business, promised to pay 15% annually.
His work is in manufactures industry, maybe B2B. He said he his business don’t depend on number of customer available. I don’t know. I am a salary man. I know nothing about business and investment.
I haven’t ask him into the detail yet. I know nothing about this type of business. He seem confident, but I feel the 15% is so unlikely that will come with (hidden) risk. Maybe my friend is also a victim of another scam, or he just overconfident.
People of Lemmy, I ask you, those who are investor and business owner: is >= 15% annually ROI possible ?
The reason he can’t go to the bank because he have take enough loan and can’t take anymore. He said I can make money by apply for loan against property, and loan to him and pocket the different.
It seem that he want to take more loan than the bank want to give him.
Yeah it seem risky as fuck. So i am asking.
That sounds sketchy af. I would run, FAR …
So he wants you to take a loan out using your property as collateral to invest in his business? And if he doesn’t get you the promised return, what do you think happens to your collateral when you can’t pay back your loan?
If his business would be viable, banks would give him loans up to a reasonable amount.
If he can’t pay back the bank loans, how will he be able to pay back yours?
That’s not how that works. For a business, if he can show the bank his business plan, they’ll loan him whatever they think he can afford to pay, and at a lot better rate than 15%. The fact that the bank isn’t suggests they think he’s full of shit.
You never give loans to someone that you’re not completely prepared to write off. You absolutely don’t give loans with loans (unless you’re a bank and getting those loans from a central bank, which I doubt you are).
Absolutely do not take a loan out to loan to him
Anyone who would suggest this does not have your best interests at heart