how to lend money

pierods

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Sep 22, 2006
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Hi,

a friend of mine asked me to lend him some money.

What's a sure way to get it back later?

I thought this might do it:

My friend does not own any real estate, nor a car, so I cannot get a lien on property.

I keep his cedula, and also I have him sign a debt acknowledgement, in presence of a witness.

I'm trying to protect myself against a very classic "disappearing act", being that even if you know somebody's address and phone number, going on the hide in DR is so easy.

Are these measures enough future trouble so that the person pays the money back?
 
Mar 2, 2008
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That's not a real guarantee, in my opinion. He can get a replacement for his cedula.

I don't believe there is a way to get an iron-clad guarantee of repayment, and it is preferable to assume there will be no repayment. By preferable I mean, it is better to expect nothing and get something than to expect something and get nada.

In the words of Ben Franklin, "Neither a lender or a borrower be."

Just my opinion.
 

SantiagoDR

"46"
Jan 12, 2006
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What's a sure way to get it back later?

In all honesty, you are looking at PURE TROUBLE lending money to a Dominican!

The odds are probably 100% you are watching your money fly away, never to return.

They will come up with reasons you never dreamed of as to why they are not paying you back. If you convert dollars to pesos for the loan, you will lose again if the exchange rate goes up, as they will repay (lol) in pesos.

If you fail to specify a time limit, that gives them until forever to repay (lol) you.

Those that do loans in the DR do so because they have the means to enforce repayments.

Listen to CatcherInTheRye.


Don SantiagoDR
 

donluis99

Bronze
Jul 12, 2004
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banks in business

If you are considering giving a loan, if it is to a dominican friend, depending on his/her economic status, most likly they would translate the word load, that is if you are a "extranjero" the translation would be Loan = Gift, thank you very much.

If you are dominican and they he/she is dominican, and you are both on in the relative same economic class, then he/she would not seek a loan from you because he/she would know that first, most likly you do no have to load, second they would understand if they did borrow, it muyst be paid back and that you would be on their tail every minute until is is paid up.

Bens earlier words, GOOD ADVICE!
 

sweetdbt

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Sep 17, 2004
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Actually, catcherintherye, it was Wil Shakespeare who first penned that sage advice.

"Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry."

Spoken by Lord Polonius in Hamlet

IMHO, any money you "loan" to a friend or family member should be considered a gift. If you get it back it's a bonus
 

mountainannie

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Dec 11, 2003
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I heartily agree with the above posters. It doesn't do any good to lend money to people who are poor - it just puts them into debt.

What I have done, is just say "yes" when and if I have the money to "give" and then say "Look I know that you want to pay this back but I just don't make loans. So what would be great is if you can "pay it forward" - in other words, don't think about giving the money back to me, but when you have it together, give the money to someone who really needs it."

One family was so thrilled with this. and so proud that they were able to help buy a new zinc roof for some poorer neighbors.
 

Chirimoya

Moderator - East Coast & Headline News
Dec 9, 2002
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Unless they are an employee and you can deduct it from their wages in installments, or they can repay you by providing some sort of service.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
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No solid collateral? No loan. That is pretty much how banks do it.
 

Celt202

Gold
May 22, 2004
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Hi,

a friend of mine asked me to lend him some money.

What's a sure way to get it back later?

I thought this might do it:

My friend does not own any real estate, nor a car, so I cannot get a lien on property.

I keep his cedula, and also I have him sign a debt acknowledgement, in presence of a witness.

I'm trying to protect myself against a very classic "disappearing act", being that even if you know somebody's address and phone number, going on the hide in DR is so easy.

Are these measures enough future trouble so that the person pays the money back?

He's not a friend.

There is no sure way.

He has no assets.

He can laugh in your face and never pay you and you have NO recourse. He doesn't need to disappear.

It's the law of tigueraje. Tell any lie, make any promise to get your hands on money. Then move on to the next challenge.
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
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Don't lend money there unless you don't expect it back.

Years ago my Dominican husband's younger brother, newly married at the time and still in graduate school, asked to borrow money to buy a car. He promised to pay it back within 2 years. We gave him the money, and when the two years were coming close we heard through the family that he and his (Dominican) wife had had a terrible fight about paying it back. She insisted that money lent between family and friends didn't have to be repaid. Unfortunately, that's not an unusual sentiment with Dominicans. (He did pay it back, they did get divorced, and he remarried a wonderful girl and has 3 gorgeous children.)

Don't lend money there unless you don't expect it back. If you do get it repaid consider it a pleasant surprise.

When we were there in March the caretaker of our property asked to 'borrow' 3500 pesos to buy something he needed for his house. (he's never done that before, and he's been with us for years). To him it was a lot of money, to us just $100. We 'lent' him the money, but consider it a gift.
 

las2137

New member
Sep 1, 2008
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Most likely this person has come to you because: a) they think you are a rich gringo (if you are a gringo/a); or b) no one else will lend them any money and think you are a sucker.

Ask yourself why no one else will lend him the money to do whatever it is he wants to do. What efforts have they made to find alternative funding? Are you the first person he's come to looking for money?

To give an example... I rather stupidly lent money to someone I considered a true friend and a "sure thing" in terms of repayment. It was for the funeral of her mother (and yes, her mother did really die, I accompanied my friend throughout the stressful death). When she came to me with tears in her eyes, asking for help, my bleeding heart couldn't take it and I lent her the money. We worked out a payment schedule that she signed.

She paid back 1/2 then bought herself a new car and has since given me sob stories about "demasiado cuentas que pagar."

The first sign that I shouldn't have lent her the money? None of the Dominican friends we have in common lent her ANY money. I learned my lesson and whenever people ask me for money, I tell them I send it all to my parents in the States.
 
Mar 2, 2008
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"Actually, catcherintherye, it was Wil Shakespeare who first penned that sage advice."

I stand corrected.

I guess Ben just 'borrowed' it from William. I'm sure he would have paid it back;).
 
Mar 1, 2009
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I love some advice I read on this site which is to respond to tigueraje with tigueraje.

Tiguere #1: Oye manito, mira loco pretame 3500, pa pode comprarle uno regalo a tu sobrino'?
Tiguere #2: (Either with a smile, or a pained look) Ay loco/manito yo no tengo ahora. Deja que yo cobre en tres mese y yo te dejo saber" :)

I got a bunch a cuzins just waiting for me to land drooling at the mouth. I ain't lending them a dime either, nor am telling them when I am getting there!

Good luck pierods
Be a tiguere or be P*nd*j*.
 

Chip

Platinum
Jul 25, 2007
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Santiago
Just remember the following phrase: Estoy pel?.

Seriously though, most here have given good advice. Dominicans do lend money among themselves and it typically still has to be secured with something like a television and they also have to sign a promissary note. This is very common in the campos and in fact my father in law does this.
 

J NewBeginning

New member
Dec 23, 2008
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Micro-Lending Institution could help this person

You may want to consider directing your friend to a micro-lending institution in the D.R., such as KIVA. The whole purpose behind the micro-lender is to enable poorer borrowers, without the means to provide collateral, a way to obtain loans at very low interest rates with reasonable time frames to pay back, depending on their situation. Just a suggestion.
 

MrMike

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Mar 2, 2003
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There are money lenders EVERYWERE in the DR, they know who to lend money to, they know how much interest to charge to make it worth the hassle and they have the muscle to get their money back.

If someone wants to borrow from you, its usually because they don't intend to pay you back and they know you cant do anything about it. Often they need the money to pay back someone who can.

The only success I have had lending money is giving payroll advances to employees based on the severance pay they can expect if fired. I cant charge interest on it legally, (so I don't) but I win anyway because employees are not as eager to get fired as they would be if they hadn't already squandered their severance money.
 

Thandie

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Nov 27, 2007
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I love some advice I read on this site which is to respond to tigueraje with tigueraje.

I got a bunch a cuzins just waiting for me to land drooling at the mouth. I ain't lending them a dime either, nor am telling them when I am getting there!

Good luck pierods
Be a tiguere or be P*nd*j*.

Yup the island game. I have an aunt who does surprise vacations too. LOL
One cousin says...as soon as I step off the plane I start begging them before they have a chance to beg me first. lol She calls herself cheap before they call her that first. She could care less.
My good Cuban friend in Toronto said he is returning to Cuba for the 1st time in years and will probably just visit family/friends for a day and then head off to a part of the island where he knows no one so he can have some peace. Kind of sad really.
My Dominican friends dad when he returns to the DR he refuses to stay with family and stays at Playa Dorado because he hates people asking him for stuff and lets everyone know he brings/gives nothing to no one.
My other friend said she knew a guy who works in resort and wouldnt even go visit his grandma in the campo because all his cousins would be begging him for money.

My friend says.....'they got by all their life without my money before they will get by without it now'. And never lend to people you couldnt turn to in your time of need. Some people are just leeches
Sure people have emergencies, thats an exception, but I have learned the hard way that giving money to most people who are just plain irresponsible with their money is ENABLING them to keep being irresponsible! You are not actually helping them you are hurting them!!!!!!!!! They will never learn how to be self reliant. Let people fall in their mistake and then they will learn to choose differently next time. A baby learns how to walk by falling and giving some people monet is like catching them before they fall.
If you constantly bail people out they will never learn to set important priorities or their are consequences for their actions because hey 'this' person will help me in a bind. Just like children most people learn this way best. They need to feel discomfort or pain to learn lifes most valuable lessons.

"Oh darn you are going to be evicted because you have not payed your rent.
Thats too bad for you. But if you were not so irresponsible and bought the latest cell phone or spent all your rent money on Presidentes making Mr. President and his family more richer that god (they thank you from their private jet and luxury mansions all over the world LOL), you wouldnt have the problem you have now".
So maybe sleeping on the street one night will be the kick in the butt they need. Saying no is a good thing sometimes. It is not an evil word.
 
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Berzin

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Nov 17, 2004
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A question-why does it seem impossible to just say no when a Dominican asks for money?

Why does the response have to be qualified with, "I'm broke" or any other type of excuse?

Are Dominicans so childlike that the truth is unbearable to them? Or are people scared of the repercussions of just saying "I'm not lending you money because I know you won't pay me back"?

There are money lenders they can go to if they need cash, with a very subtle difference. Those guys need to get paid back or else. If fear is the only thing they respect in regards to money matters, either be able to scare them into paying you or just tell them NO and that's it.

And if they ask why, just tell them "PORQUE NO". That is a very Dominican response that they should understand without explanation.