Should have just said no, flat out - and gave the reasons you did in your OP here. You started off well with your text but weakened by the end!
You're not an employee of theirs.
This really. Claiming you're not ready to do this yet leaves the door open for the future where a firm no would have closed it.
To those claiming he's been done a favour and now owes one it sound more like they're doing each other a favour as he claims it is mutually beneficial for him to be there and I'd assume this means he's sorting out work for them in return.
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