smallbusiness.co.uk: Helping your business think big

A promising venture

Previously, we’ve looked at the reasons why many describe the...
Have your say »

RSS

Q: I gave someone £5,000 as a business loan. What is my legal recourse for getting the money back without a contract?

Jun 22 2009

If you have no contract or agreement in writing you face a very difficult task. You first of all have to prove that you lent the individual the sum. If you paid them by cheque that should provide evidence of an amount leaving your account and going into theirs. If the loan was in cash, you have to find evidence of the transaction. Even with this evidence, you will have difficulty proving it was a loan and not a gift.

You do not say whether you have asked for the money back and what the response was to this request. That might give an indication as to what your next steps might be. Your problem is that you might be throwing good money after bad if you employ a solicitor to fight the case.

You might like to try a claim through the Small Claims Court.

Your local Citizens Advice Bureau might be able to offer some further advice.

Comments

There are currently no comments on this article

FREE Legal, Financial, Accountancy & HR Help

Aska Professional understands the challenges faced by small businesses. That’s why we provide instant access to professional advice and legal templates. FREE access to Solicitors, Accountants, Financial Advisors & HR Specialists. Ask our experts a question and get a personal response within 60 minutes. Sign up now to ask a question - FREE.

Hiscox business insurance for small & medium businesses

Hiscox offer specialist business insurance for office based professionals and consultants. Hiscox understand's every business is different and work hard to understand the specific risks small businesses face. Find out which business insurance is suitable for you.

Bupa for Businesses

We understand that all businesses are different. To help you choose the right healthcare package for you and your employees, call us today on 08457 66 11 15 or alternatively find out more here.

Polls

Small claims Questions & Answers

Business insurance

Jason Stockwood, Simply Business Ask a question

Legal Advice

John Staniforth, Partner - Kingston Smith LLP Ask a question

Trade marks

Gary Johnston, Mathys & Squire LLP Ask a question

News

smallbusiness.co.uk: Helping your business think big

SMEs need to act now to develop green products

CBI: SMEs must embrace low carbon opportunities

The Confederation of British Industry has urged small businesses to take advantage of low-carbon opportunities ahead of its climate change summit.

SMEs set to embrace new IP initiative

A government tax incentive that rewards UK-patented intellectual property will be welcomed by all small businesses that invest in innovation, says a law firm.

Auto-enrolment delay could cause problems

The government’s decision to delay introducing auto-enrolment pensions for small and medium sized businesses is likely to be a mixed blessing for the sector, according to a law firm.

New EU law could break down trade barriers

Small businesses in the UK could find it easier to sell goods or services to other European countries thanks to a new EU-wide sales law, according to the Federation of Small Businesses (FSB)

FPB: Let's protect SME patent rights

The Forum of Private Business is calling for small businesses' patent rights to be better protected amid concerns that many cannot afford to sue companies which steal their ideas.

Government aims to cut red tape in manufacturing

Manufacturing businesses are being asked to play their part in cutting bureaucracy and red tape in the latest phase of a government campaign.

SMEs unfamiliar with Bribery Act

Almost three quarters of small businesses do not understand what the impending Bribery Act is or how it is likely to affect the way they do business, research finds.

Government launches website to cut red tape

The government has introduced a website challenging the public to help cut unnecessary regulations.

CIPD: Employment tribunal system ‘broken’

Employers believe the current system for resolving workplace disputes is failing them, with 69 per cent saying they have no protection against employees making claims to tribunals.

Stamp duty land tax could hit unwary SMEs

Businesses have been warned to finalise quickly any purchase of more expensive properties or face an increased stamp duty land tax (SDLT).

Employee law a burden for SMEs

Small businesses feel strangled by employee law and legislation.

Guides & Tips

Starting the small claims process

If you have a claim to make against another business or sole-trader, you may need to go through the small claims process. SmallBusiness.co.uk tells you how to start the process.

Dealing with insurance claims

A study carried out recently indicated that the majority of businesses that suffered a major insurance claim, where production fell by more than 80 per cent, failed after a year, regardless of how good their insurance cover was. SmallBusiness.co.uk provides some points to help you if you need to make a claim.

How to avoid unfair dismissal claims

Dismissing an employee can be a difficult area to tackle for employers. This guide from SmallBusiness.co.uk gives an overview of the basics to help you avoid paying any unnecessary compensation and explains the basis for claims of ‘unfair’ dismissal.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.