Starting Your Own Money Lending Business

Summary: Venturing into a money lending business is a good idea especially people need money nowadays. You need to focus on small market if you want to be competitive. It will be best if you will be starting up small.

Make sure that you have a presentable office so that your clients will not be scared in acquiring your service.

A money lending company is a kind of business that is becoming popular nowadays. This is due to the fact that people are now being affected by economic crisis. Money lending businesses usually provides people the opportunity to gain credit in different ways whether by means of credit cards, personal loans and other types. The market for money lending companies is already saturated by big banks, tycoons and other business that have enough money to lend people in need. If you think about starting your own money lending business but you fear that it will not work, then probably you might want to take the risk. There are money lending firms that focus on small market that offers money via check cashing, payday advance, loans and other credit service. Remember if you are starting this kind of business, it would be best to start up small.

There is now a high demand when it comes to money lending companies and it will be growing in the next years due to the fact that a lot of people consider borrowing money from lenders. Money lending companies are steadily increasing nowadays and they are often found in the high class market. Some of them are part or affiliated with big companies or stable organization. Credit services are proven to be popular as well in communities. If you are planning to open an individual lending business, you might want to serve in a wider area.

You need to charge fee for your services. If you are opening up an office you need to display the amount in your services so that your client’s will be able to see your rates. It is best if you have a nice and professional looking office space so that people will not be hesitant to go on in. Since you are catering to people who are looking for money, they might be feeling anxious and scared. Show them that your environment is friendly and you are the answer to their problem. When starting a money lending business, you need to decide if you want to operate in a bigger or small scale. It clearly depends on the type of loan you are offering. You can offer short term loan which have rate with small interest. If you plan to pursue home credit type of service, you can take small customers that may agree to pay on weekly basis. You can also offer a collection service where you will be the one to collect in their respective homes. You can earn profit on the interest rate depending on the type of loan that you offer.

Money lending business tips

Starting this kind of business takes a lot of effort and money as well. There are right and wrong ways to lend money. Proper documentation is essential in your business to keep track of the money flow. It should be well written kind of documentation. The help of a lawyer will make this a much easier task. Carefully draft the contract and discuss it with your lawyers thoroughly. This way you can avoid clients finding any loopholes in your contract.

In order to attract people, start strategizing a marketing plan. This way you can able to give incentives to your customers. Make sure that your build a good social network so that people can refer you to others. Obtain proper licenses from the government to operate legally.

34 Responses to "Starting Your Own Money Lending Business".

1. alexander on 4/8/2009 7:54:15 AM

How can i start up this Nigeria?

2. Massu Novat on 4/28/2009 11:16:00 AM

Can i get the whole process on how to run this money lending business, what do u need on the ground and how do you go about lending money to someone. What administrative issues do you need to have...

3. john on 5/9/2009 6:04:34 PM

i want to start lending money in the united kingdom on a small scale. Whats the first steps to take when it comes to lending?

4. beverley joseph on 6/2/2009 10:22:21 AM

Can i get the whole process on how to run this money lending business, what do you need on the ground and how do you go about lending money to someone. What administrative issues do you need to have...

5. bongo on 6/8/2009 9:20:33 PM

where can i get a proper license in south africa and if i want to do debit orders which channels must i follow in order to get that?

6. Ravi Raj Paliwal on 6/9/2009 9:58:10 AM

I want to start my company in delhi.

7. thabang on 6/11/2009 10:43:18 AM

Which channels must i take to get a license in south africa and what to do if I want to do debit orders?

8. raymond biko on 6/14/2009 1:51:35 PM

i wish to start a small scale money lending business but i wonder on what interest rates in kenya.

9. Marlo on 6/30/2009 12:16:26 PM

Please provide the whole process on how to run/start a money lending business? What disclosures do I need, and Federal regulations must comply with. What administrative issues do I need to have in place?

10. Lindley on 7/10/2009 1:55:43 PM

I want to start a small lending money service. Do i need a license of some sort?

11. Honest living on 7/29/2009 6:43:08 AM

I use to lend people money on a monthly basis with 30% interest but stooped when they were busting my b*lls because i was "ILLEGAL" as if i'm some drug dealer gosh, i'm in South Africa. is there any way i can do this legally and get a lot of my money back from some of my old clients because i made them sign for it.

12. smith on 8/1/2009 9:30:55 PM

I cant lend the money out due to late repayments and not good customers.

13. Theodore on 8/3/2009 5:51:42 AM

How to start a money lending company? Is there a license needed, etc... What's the fastest way with gaining the education?

14. Beverly on 8/4/2009 3:13:07 AM

I've been wanting to start a money lending business here in Victoria, Canada. Can you help me with this? Just need to know how to charge and the way to calculate the interest to customers.

15. Felix on 8/18/2009 10:11:34 AM

this forum is quite useful, i have just started my dream business of money lending in Kampala, Ganda East Africa.

16. Tebatso on 8/20/2009 5:33:19 PM

I want to start up a money lending business, i would love some vital tips.

17. mariam on 8/21/2009 1:46:25 PM

i found my office space and my next step is to legalize my business and see a solicitors about an agreement but i would like to know how do i credit check people. what system will i be using to register the client on my computer as in our days everything is done by computer and how will I find the proper administration documents to make them sign please help me, I am confused!!

18. Simon on 8/27/2009 9:11:17 AM

Help me to start money lending

19. Reuben on 9/9/2009 3:16:37 AM

that's great, i had this idea like for ever. i've gone ahead to register a company and legalize the business. but my worry is about credit check of my clients. am targeting the 'corporate' class back home. i really need your advise. many thanks

20. TK on 9/10/2009 8:08:50 AM

this is what you need for your business

21. Jean Yabu on 9/18/2009 3:24:08 AM

I want to start a money lending business. Please provide the whole process on how to run/start on it? How much percentage of interest should I add? Thanks.

22. Lady Miracle on 9/19/2009 9:13:54 AM

Good Day, I am a private loan lender by name Lady Miracle, i give certified loans to serious minded individuals and company at an interest rate of 5% with total loan repayment allowed weekly monthly or yearly depending on how you can make repayments if interested email me at lady_miracle001@live.com We only offer out in: Dollars, Pounds, Euro and Naira only.

23. Mark on 10/6/2009 12:38:31 PM

thanx for the tips, i want to start with building a network of friends and charging them interest daily, do you think this will be manageable! you know sometimes friends run out of money for lunch towards month end and we lend them for free!

24. peter kuria githu on 10/12/2009 10:28:07 AM

I want to start a small money lending company with kshs. 20000, could you please send me the tips for starting this kind of business and also tell me the security I should be considering for those loans

25. ALFRED on 10/15/2009 4:15:39 AM

please, i need a detailed guide on how to start a money lending business.

26. Martha Masemola on 10/19/2009 9:47:51 AM

can I get the whole process of starting the Money Lending business? Is there any license needed, etc?

27. Njeru Karuana on 10/20/2009 11:52:08 AM

I have a money lending business operating in Nairobi for the last 2 years. my problem is that I have a very high demand but i have run out of money to lend. we charge interest at 5% per month. Are there people out there with money who can provide it to my customers and share the interest with me. Kenya does not have foreign exchange restrictions for moving money in and out

28. Njeru Karuana on 10/20/2009 1:12:15 PM

I can be reached via email njerukaruana@yahoo.com for more information on how my program works

29. cherry ann on 10/22/2009 4:56:39 PM

i'm also planning to start a small lending money business in the philippines but i don't know how to start. will you please help me? please give me tips on how i can collect the payment effectively. i think in this kind of business that is the challenge to be a successful one.

30. Bindi Bonang on 10/28/2009 5:57:15 AM

I am in the process of starting this kind of business and would like to know all the requirements including administrative, calculation of interests and challenges/risks faced by this business.

31. austin on 11/1/2009 7:28:24 PM

I would like to start a money lending business in nj. can you provide me what legal license and admin. stuff i need to go through?

32. Christine on 11/8/2009 1:59:07 PM

Hi Austin,

I have been wanting to do the same however, I am reading that it is illegal in NJ to do lend money better known as Payday loans.

I am very new to this so, perhaps I am not correct on all of this info however, I did read this on numerous sites so please be cautious and do your homework!

I currently have three people looking for loans and I want to act on two of them. I am now afraid to! If anyone has info contrary to what I have learned, please provide info. Thanks, Chris

33. Lindiwe on 11/16/2009 12:06:59 PM

hi, i want to know how to start a money lending business in south africa, newcaste & how do i obtain a money lenders license. Please out.

34. Richard D. Barros, Jr. on 11/17/2009 7:56:42 AM

Me and my friends are planning to conduct a feasibility study on whether it is good for us to start a Lending Business on a certain location. How and where do we start? What are those things that we should include in our study regarding this business? Please help us. We are from the Philippines, Negros Oriental Province, Dumaguete City, Negros Oriental State University.

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34 Responses to "Starting Your Own Money Lending Business".

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