Comment by nodesocket
2 months ago
I had a friend who I lent money to his startup during Covid. He promised would be paid back within a year. Multiple hard conversations and it’s 4 years later and not one cent has been paid back to me. We currently don’t speak to each other. He’s delusional with his startup ideas, lives in lala fantasy land. Refuses to get a job and take any responsibility. He has zero track record of success, so it’s somewhat my fault for loaning him money.
It's your fault for lending money rather than asking for a % of profits (if any) like a normal early investor.
I tend to think having fiscal responsibility, morals and not being a shyster as the person who’s at fault.
Never loan money to friends is like “having money 101.” You can gift it or you can invest it with appropriate caveats given to any external investor, but never lend it.
This is common advice because it turns good relationships bad, that manifests as viewing former friends as shysters
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Never lend what you would not happily consider a gift.