Lending money to Cambodian legals
Re: Lending money to Cambodian legals
-----brisie wrote: ↑Thu Feb 11, 2021 3:09 pm Got a khmer friend who wants to borrow a substantial amount of money for business purposes.
They've already borrowed from the banks to their limit and need me to give them a boost. The loan is to buy import and resell to an upper class market of cambodian cash throwers. The debt is expected to be repaid 2-3 months after shipment arrives and is sold.
What could possibly go wrong and how can I protect myself if all of a sudden after the loan magically I become a total bastard to avoid the debt.
As others have pointed out the worst is that you lose all of the loan. And the most likely outcome is that you lose the entirety of the loan.
In a business situation, they are insolvent. If your going to give them a loan you sure as heck better get a ton of equity in addition to the loan terms. The issue you have is that there is no legal recourse here in Cambodia and your an outsider.
I'd also suggest that perhaps you don't have a "friend". You can find that one out relatively easily by declining to make the loan.
Good luck.
- newkidontheblock
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Re: Lending money to Cambodian legals
You are the foreigner. They are the locals. How do things ever work out in the Kingdom of Wonder if there’s a disagreement?
Consider it a donation to a local, never an investment to a local in the Kingdom of Wonder.
There will be no returns.
Consider it a donation to a local, never an investment to a local in the Kingdom of Wonder.
There will be no returns.
- Ghostwriter
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Re: Lending money to Cambodian legals
I wouldn't import someone's stuff on my name without thouroughly check it before packing. Could be anyhing in it.
I wouldn't lend to someone importing in his own totally corrupt land unless a deep relationship, like true and long childhood / family friendship. Could happen anything with made up excuses.
I wouldn't lend to someone importing in his own totally corrupt land unless a deep relationship, like true and long childhood / family friendship. Could happen anything with made up excuses.
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Re: Lending money to Cambodian legals
Seems likely that with all the will in the world you’ll be very last in line for repayment after your friend settles with the banks and takes good care of his own family first.
Good luck.
Good luck.
- truffledog
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Re: Lending money to Cambodian legals
Topic reminds me of what happened to me in 2016. I bought bits and pieces of gold at Ly Hour from monthly residual income as back then I used to have far greater trust in the stability of gold than in the integrity of banks here. Over the years I accumulated 11 damlung (តម្លឹង) of gold. I didn't have a home vault or safe and a (now ex) local friend offered to have the gold kept in his safe. To make the long story short, I never saw the gold again and he pretended like nothing happened. I had no recourse to any avenue of recovery.
Money you lend or entrust someone for safekeeping in this country is money forever gone.
Money you lend or entrust someone for safekeeping in this country is money forever gone.
Re: Lending money to Cambodian legals
...and owning in your name. The loan sought will have to be enough to cover the import duties and vat anyway, so he will be on the hook for those obligations anyway.Kammekor wrote: ↑Thu Feb 11, 2021 4:32 pmImporting in your name, taxing in your name, legal obligation to pay taxes for you as importer as well.Doc67 wrote: ↑Thu Feb 11, 2021 4:11 pm What are they planning to import?
If you do go ahead (after all due diligence), don't lend them the money to import products in their name. Import them in your name and release the goods to order when the "cash throwers" throw money at you. Be a partner, not a financier.
If there is any excuses as to why the imports have to be in their name, and not yours, then this should be the end of the discussion. It might also give you a way to say no, by getting them to say no.
I'd give that one another thought....
Without knowing what the product to be imported is, it is impossible to know if this way is even practical.
For the avoidance of doubt, my first and overriding advice is just to refuse, the import ownership option was just an idea to keep control of the money and assets as much as possible should the OP go ahead.
Last edited by Doc67 on Fri Feb 12, 2021 8:28 am, edited 1 time in total.
Re: Lending money to Cambodian legals
Here's a question:
How many amongst us actually have Khmer friends that would have the nerve to ask for such a business loan?
I am talking here about a real, genuine friend. Not a server in a bar or your favourite tuk-tuk, They are just acquaintances. Girlfriends are out too.
I mean someone you actively and regularly socialise with.
How many amongst us actually have Khmer friends that would have the nerve to ask for such a business loan?
I am talking here about a real, genuine friend. Not a server in a bar or your favourite tuk-tuk, They are just acquaintances. Girlfriends are out too.
I mean someone you actively and regularly socialise with.
- Bitte_Kein_Lexus
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Re: Lending money to Cambodian legals
Great idea... Lending to people who have maxed out with banks. Either start running a loan sharking operation with 50% interest rates or maybe...take a pass?
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Re: Lending money to Cambodian legals
Doc67 wrote: ↑Thu Feb 11, 2021 4:11 pm What are they planning to import?
If you do go ahead (after all due diligence), don't lend them the money to import products in their name. Import them in your name and release the goods to order when the "cash throwers" throw money at you. Be a partner, not a financier.
If there is any excuses as to why the imports have to be in their name, and not yours, then this should be the end of the discussion. It might also give you a way to say no, by getting them to say no.
This very sound info. The goods come to you in your name and you control the flow. Depending on the type of goods..
I have lent money two times here. But both times lost the money
Last edited by Oumedc on Fri Feb 12, 2021 10:41 am, edited 1 time in total.
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