Legal Question in Business Law in California

The general rule is yes, a private individual can sue to collect on a loan.

If the amount of the loan is outside the jurisdictional limits of small claims court, you may want to speak with an attorney as to how to proceed. If the amount in question justfies the expense, you may even want a short consultation with an attorney to learn how to present your case.

I agree with Mr. Perry. Individual lenders are generally allowed to enforce their loan agreements through the courts. But whether the courts are available to you is a different question from whether you could win this particular suit. That would depend on the facts, including the terms of the written agreement.

Only commercial lenders need to be licensed. Most loans from one individual to another don't qualify as commercial. I would need more information before I could say whether this one does.

Your question merely implies that the borrower has breached the agreement, but it doesn't say so and it offers no details one way or the other. Even if he has breached, and even if the breach is material, there may be other reasons why you couldn't win a lawsuit. As Mr. Perry suggests, you may want to consult with a lawyer about your situation in more detail.

Good luck.