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 ?
Get it in writing.
But yeah, it’s sketchy as fuck. If he could guarantee that ROI he could just go to a bank.
If you can afford to lose the money and maybe tolerate a lengthy trial go for it. Personally I couldn’t.
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.
He said I can make money by apply for loan against property, and loan to him and pocket the different.
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).
Get all the details, then come ask us.
This sounds incredibly risky. Proceed with caution!
The risk is that the business fails. There are no “sure thing” investments, especially at higher returns.
Ask him how his business can fail. If he doesn’t give you a variety of possibilities and ways he’s hoping to prevent them, I’d be very worried that he’s overconfident and not prepared for difficulties.
his business don’t depend on number of customer available
Clarify this with them. If the business does not depend on customers and selling a product/service to them, then it’s most likely a pyramid scheme/MLM. If he continues to be vague about what exactly the business is, that’s another red flag. A legit business shouldn’t be hard to explain, especially to people they want to ask for investment from.
