subject: Easy and Fast Money with a Money Lending Business [print this page] Easy and Fast Money with a Money Lending Business
Loan Money to individuals
To start will be better as the market is saturated with big banks, large financial institutions and tycoons offering loans to individuals. You want to concentrate on the average person who needs a small loan such as payday advances and check cashing.
Set up your office
If you start a business and you set up your office, make sure it is presentable as to attract customers. Usually people are already scared and anxious who will enter your office, you must make it inviting with a relaxed atmosphere. If you are doing it as part of only an online service, ensure you place great and attractive advertisements. A great looking website will also encourage more people to apply for your loans. Whatever you choose it must be positive with a friendly attitude and environment.
Charges for your services
You need to display your rates clearly in your office and online if you have a website or advertisements. Once you have established whether you are doing business on a larger scale or on small scale, you can offer certain type of loans with the added interest. You can also decide to take on customers who pay you back on a loan on a weekly basis. You can also offer a specialized service where you go to their homes to collect money owed. This way you spare them the trouble and you are also more assured of getting your money.
Money lending Tips
This type of business will take some money output initially, but it is one of the most lucrative if operated correctly. Proper documentation to keep track of the money is essential and proper contracts must exist between you and the clients. If you do not know how to raw up proper documentation it is advised to get a lawyer to assist with documentation. Clients may try to find a loophole in the contract and a lawyer will be able to eliminate the possibility thereof.
Secure your start-up balance
You can either use your own money or obtain a loan yourself with a bank or investors or a combination of the mentioned three. It can vary as it will be your decision on how much you are prepared to loan to customers, if you decide on a micro loan business, you may need very little capital only ranging in the hundreds instead of thousands as in the case of a mortgage lending business.
Obtain the proper licenses and registration
Your specific State will be able to inform you of the licenses needed as well as the registration of your business. The application fee usually ranges from $1,000 to $4,000 and you will need to register with Internal Revenue as well.
