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  1. #1
    Join Date
    Dec 2010
    Posts
    2

    Question Business Loan Gone Bad

    I'm really not sure what to do right now. I made a loan to a business 7 months ago with a set repayment rate and have been getting the run-around ever since. Prior to submitting the money the owner was in constant contact with me and this continued about 3 weeks past that, and ever since he has been hard to get a hold of. No longer will he meet in person, talk over the phone, etc. -- it's either emails or text messaging only.

    As for my problem, we signed into two contracts together, totaling almost $30,000. As part of the deal, and due to the amount of it, he was to pay 10% a month of that amount, with the principal at the end. Despite the interest rate, I saw nothing wrong with this as A) he has stated over and over that he is a lawyer and can draft his own documents (and he even left town many times to help other companies/people with their legal problems) and B) He claimed to have someone else already locked into a contract with him that had been going on for a while.

    Despite not following our contracts at *all*, he has been looking on a daily basis for the past 7 months for more investors.

    Now my problem is I'm unsure what to do. Every time I contact him it's always "tomorrow" or "end of the week." That has been going on for at least a month and a half now.

    As to our agreement, he was supposed to have sent the first payment 6 months ago. His business is still open and is earning money so that's at least partial relief (it's not like it tanked or anything and he's got nothing).

    Any help would be much appreciated. I left out some details as the "Before You Post" message said to try keeping it anonymous. But I'm willing to share any information that would help get this resolved or get me on the right path. Also, I posted it in this area as it was the only one dealing with loans, and these was business loans.

    Thanks in advance.

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Business Loan Gone Bad

    You haven't made clear whether he's in default. You haven't told us the state involved.

  3. #3
    Join Date
    Dec 2010
    Posts
    2

    Default Re: Business Loan Gone Bad

    Sorry about that. As far as I know he would be in default (based on my understanding) as he has broken both of our contracts for the past 6 months. He has also claimed time and time again that he would get it resolved yet has done nothing to work towards it.

    As of right now I have been at his mercy regarding everything -- more or less I have to keep texting/emailing/calling until he finally texts me back and it's usually a one liner like "end of the week" or something like that.

    The first payment to me (according to our written/signed contracts) was supposed to be on June 16, 2010, with another payment every month on the 16th thereafter. Starting in June is when he was giving me the run-around and to this date I have still received absolutely nothing.

  4. #4
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Business Loan Gone Bad

    Then you sue him for breach of contract. That is your proper option to resolve the problem.

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