My question regards XXXXX XXXXX loan made to a friend (which I was taught to never do). My friend owns an entertainment company. He recently had an event in which I was a sponsor. The event rolled around and he was short on money. He didn't know what to do so I took out a high-interest loan and we discussed and agreed that it would be paid back immediately after the event. Well, naturally, I was avoided for several days until I got in touch with him.
Backing up a bit, before I made the loan, he said that I needed to speak with his partner Shane (another friend). I inquired about partnership
, and I was told that yes, Shane was working with Mike (the friend who received the loan). That's as far as the discussion went. I was told to wait a day or so to make sure that the event would even go through. It did, and I paid Mike (not Shane....no discussion was ever pursued about Shane's role other than he was helping Mike).
Now, Mike claims that I need to approach Shane for the money as well as they are "business
partners" (this is the first that I have heard of this). I was informed of the name of their partnership (which never was brought up during the discussion about the loan). Thus, I was instructed that I made a loan to the partnership (which I didn't even know existed) which is titled Event Brother's.
I made a personal loan to Mike. It was with the knowledge that he needed it for the event, but I loaned the money on Mike's behalf to do whatever was needed with it. Personally, I hated to see the event crash after having been a sponsor (in which I do not receive compensation). But, he is now saying the he and Shane are too broke to repay, the loan was made to them, and they will pay when they can pay. It's a debt so all I can do is wait for my money or send them a bill.... that's what I was told. As far as I'm concerned, there is no "them" to it. The money was borrowed on MIke's behalf, and given to him.
Where do I truly stand with this???