Start a Loan Company

A loan company is one business you can put up easily that will give you fast and big returns on your investments. Are you wondering how this kind of company operates and how to open one? Read from our guide the basics of starting your own loan store.

You can open a loan business outright, start it with your existing business or get a franchise. You can potentially make your money grow several hundredfolds.

cash for loan

In less than a year, you can earn at least 30% return on investment. Basically, if you are granting a loan, you issue a “paycheck” that a person can encash days before he actually receives his actual paycheck. You get the returns of tying up your money for a few days by charging the borrower a fee (average of 15%) that you deduct when you issued him an advance paycheck.

Opening a Payday Loan Store

If you are opening a new store, first find statistics to know whether there are a lot of employed people who might need payday loan advances in your city. Then look at the competition. How many payday loan businesses are already operating in your area? Is there a remaining part of the market to grab? Learn as much as you can about the business by reading trade periodicals or by working in a payday loan office. A Payday Advance Training Manual is also available at www.paydaymanual.com.

Payday Loan Business Tips

  • Secure licenses and requirements for opening a storefront from your local government office
  • Secure a license as a payday lender
  • Get a lease of a store space (less than 30 sq. ft. will do). You might be required to pay advance rent and deposit
  • Put advertisements for a payday loan business through flyers and signages
  • Be aware of laws that govern payday advance businesses, like truth-in-lending laws, and adhere to them so that you don’t get into trouble with regulators. Better yet, consult an attorney.
  • You can charge an initial set up fee of less than $10 when a client first applies for a payday advance the first time
  • There are no collaterals involved in the transaction, so you must create a loan contract signed by the borrower.

If you are adding a payday loan business to your existing business, you just have to secure additional working capital and send out advertisements (business cards, flyers, banners) that you are offering pay advances. The average payday loan is between $250 and $300. If you will process 100 payday loan advance applications, you’d need up to $30,000 in one payday.

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Getting a franchise for a payday loan business is another option. It could be a little costly, but it can make the process easier because of the training the franchiser can provide and other inclusive perks in the offer, like advertising.
 

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160 Comments

  • Rondad Lee said on June 29, 2009
    Would like more info on starting a loan company catering to Government Employees.
  • Leeroy said on July 4, 2009
    hi, i would just like to know how to start a loan business. thanks leeroy
  • Daniel Matus said on August 1, 2009
    Hi, I would like information on how to start a loan business and how to secure payment methods....
  • vibhore gaur said on August 20, 2009
    i want to start finance business in india, what are the starting documents needed?
  • tomislav Vidmar said on August 28, 2009
    I would like to know how to open a loan business in Croatia, what documentation is required and how do you collect on the loan
  • Andrea Stargell said on September 4, 2009
    I would like information on how to start a small loan business.
  • Juan Mora said on September 18, 2009
    Thanks. I need more information please, Juan Mora
  • Patric said on September 21, 2009
    hi, i really like starting a loan business. can you please send me information regarding incorporating this kind of business
  • John Aisabokhai said on October 6, 2009
    Hi guys, i am looking to set up a loan company in the UK and i am in need of any information that can help me e.g:
    (1)legal requirements.
    (2)structural requirements.
    (3)Financial regulatory requirements.
    e.t.c
  • Gina said on October 19, 2009
    In the uk you can learn how to start a loan company by going to: www.briteways.com
  • goddy said on October 29, 2009
    Is it possible to start a loan company from home? If so what are the requirements?
  • Sandip said on November 3, 2009
    Hi.. I would like to know more about the business
  • steven said on December 1, 2009
    GOOD AFTERNOON, I AM INQUIRING ABOUT STARTING A COMPANY. I NEED MORE INFORMATION AND START UP COSTS.
  • Ashley said on December 2, 2009
    please send information on how to start loaning out large amounts of money (secured loans only). Including legal issues, licenses, etc... thanks
  • william white said on December 14, 2009
    i would like to start a small loans company from home, can you help. thank you.
  • william white said on December 14, 2009
    i would like to start a small loans business from home, can you help. thank you. i am based in manchester, lancashire, england
  • simmy said on January 15, 2010
    i would like to start a small loan business from home is that possible and how do i secure repayment, thanks, i am from Kingston Jamaica
  • buyie said on January 29, 2010
    i would like to get someone that we will share some idea start a money lender company as i would like to share my ideas with anyone who is willing to start the business.
  • Raul said on February 4, 2010
    El Paso, Texas. Yes. I have a janitorial business and have capital to start a loan business. I would like to know how to start it and what are the laws. We are looking for a space but need information on how much space we need to rent.
  • LEROY said on February 20, 2010
    MY COMPANY I IN MEMPHIS TN AND I WAS WONDERING WHAT WOULD I NEED TO START A SMALL LOAN COMPANY AND HOW WOULD I GO ABOUT GETTING THE LOAN FOR THE CLIENTS AND HOW MUCH OF A INITIAL INVESTMENT WILL I HAVE TO HAVE
  • Sibongile said on March 30, 2010
    Please help I would like to open loan company in Johannesburg South Africa. What is the procedure. Do i need to obtain a license?
  • lupe said on April 1, 2010
    I would like to open small finance company in San Antonio, Tx what are requirements, etc?
  • DAN SEAN said on April 6, 2010
    I can help anyone who is willing to open a Loan company to get every documents necessary for a start (legal requirements, structural requirements, Financial regulatory requirements and secure license from the local government office, email now @ danseal27@yahoo.com to get your Loan company started.
  • Angela said on April 26, 2010
    how to open a Loan company in Hattiesburg, Mississippi, United States
  • Rhonda said on May 12, 2010
    How to start a loan company from my home in orange city florida and bronx new york. Thank you.
  • Renee said on May 23, 2010
    Hi, I would like to know how to start a loan company, and about how much would it cost to start one in Houma, Louisiana.
  • Mrs Morgan Williams said on June 3, 2010
    Apply for a stress free loan offer apply now by visiting our firm Morgan Loan Firm Via Email address:morganloanfirm@sifymail.com
  • Fanderson said on June 29, 2010
    I do apologize but it seems my questions are about the same as the other 27 here. Basically knowing the initial procedures, average start up costs, etc. I'm seeking to start mine as an online biz. Any info to lead me on the right path would be helpful. Thanks. Hampton Roads, Virginia, 23509
  • KRISTINA said on July 8, 2010
    CAN YOU GIVE ME ANY INFORMATION (LEGAL AND FINANCIAL REGULATORY REQUIREMENTS)ON HOW TO START LOAN BUSINESS IN QUEBEC CANADA
  • kelvin said on July 8, 2010
    i started a business called 3rd chance financial inc it was a business credit building company it was design to help entrepreneurs start there business with no money needed up to $250,000 in business credit bad credit no credit it still in process but i need investors to help fund it and take a chance where can i find entrepreneur looking to take a chance with me on my business.
  • Cindy De Lancy said on July 23, 2010
    How could I secure payment at the end of the month via the bank or salary deduction
  • Mike said on September 14, 2010
    I would like to open a small loan company in Lafayette, La. I need info on what is required by the state and also would like to know what it would cost. Thanks
  • RAJEH KUMAR said on September 24, 2010
    i want to start finance business at rajasthan in india, what are the starting documents needed? please send information on how to start loaning out large amounts of money (secured loans only). Including legal issues, licenses, etc... thanks
  • Jeff Salvati said on November 22, 2010
    I love the consumer finance business and have been involved in it for 20+ years, it is fun, profitable and in most instances you can truly help people who are in need. There is nothing easy about starting a consumer discount company. Payday Lending while lucrative is coming under heavy scrutiny from regulators my advice keep the loans small with short repayment terms. You will not believe how many consumers need a $500.00 or $1,000.00 loan for 6 to 12 months that fully amortize.
  • yuri said on December 17, 2010
    anybody knows how too start lawsuit loans. and how much money needs. Yuri
  • lesiba said on January 14, 2011
    Hi,plz provide me with procedures that i need to adhere when operating this kind of business in RSA Durban.
  • Sukhwinder Singh Lally said on March 14, 2011
    I want to start finance business from home in leicester UK, what are the starting documents needed? please send information on how to start loaning out small and large amounts of money (secured loans only). Including legal issues, licenses, procedures that i need to adhere too etc... Thank You
  • Victor Davidson said on April 4, 2011
    I would like to start up a loan business company. the amount that I will be loaning is £300 to £1000. what are the legal requirements? The business will be based mainly in slough and reading. Many thanks, Victor
  • Marcia said on April 15, 2011
    I live in the UK i am very interested in starting up a loan business working form home. I would be grateful for advice on where to start and what training I will require. I look forward to your reply via my email. thaank You Marcia
  • pradeep mazumdar said on May 21, 2011
    want to start a loan business in india, orissa can anyone help me about about the necessary license and document required and how can i get the license. thanks
  • P D Kumawat said on June 7, 2011
    I want to start a loan company in rural areas in rajasthan. How much minimum money is required for this and what is laws. pl tell me.
  • Edwin said on July 19, 2011
    Los Angeles, CA, USA. I want to start a loan company that issues student loans. Any idea which government agency I need to speak with to do this? Thanks.
  • Michael Cassar said on September 13, 2011
    I am looking for a loan company to take over loans ranging from 5000 pounds to 8000 pounds. The interest is at 15% over 60 months. The loans are unsecured but the spread is good. I am talking about 100 clients a year at an average of 5000 per client. All clients are British living in UK and would have left at least 10% deposit on their purchase. Any one with a credible company please contact me.
  • mpho said on September 26, 2011
    i would like to know the steps that i need to take in order to be able to open a legal loan company, what type of license do i need and how to get it, and all the legal requirement i need to follow.
  • Sikander Hayat said on October 31, 2011
    I want to start a Loan Company in Canada as Non Resident
  • adrin said on November 14, 2011
    country; uk. location; south west- weston supermare. I would like to start a loan company and build a website for it. Please give me some info about running this company. thanks, adrin.
  • Nelson Jallah said on November 20, 2011
    I am anticipating opening a 'payday loan business' from home and using the internet. Because I would not be operating from a shop/office for now, the interest on a money loaned to potential customers would be less. Any advice would be appreciated. I would also appreciate to talk to an expert.
  • Skhumbuzo said on December 26, 2011
    I would to start loan company at Duran South Africa but I need more details and procedures to follow.
  • Skhu said on December 26, 2011
    I am currently running loan shop at New.Germany Pinetown but my problem is that I have no permit or license to run it. Where can I get license because I am keen to advertise my business?
  • Michael said on January 20, 2012
    i want to acquire license for a loan company in Kempton Park, south Africa, where do i go, who do i contact?
  • sonja J said on January 21, 2012
    yes I would like to start a loan business in my state . Dublin ga Please send me information
  • Kabelo said on February 1, 2012
    want to start a money lending business in south africa, pretoria, can anyone help me about about the necessary license and document required and how can i get the license. thanks money
  • Elsa said on February 14, 2012
    Hi, I want info about what I need and how much funds is needed to open a small loan business in Laredo,Texas. Thanks
  • DR ERENCE said on March 1, 2012
    Good morning,i would like to know how to start a business loan in south africa (north west)and the procedures.thank you.
  • Brenda said on March 7, 2012
    I would like more information on how to start a loan store, in Dallas Texas..
  • Kenneth said on April 5, 2012
    i would like to start a loan company at Lephalale; what are the legal fees required to start a loan business?
  • Kenneth said on April 5, 2012
    I would like to start a loan company at Lephalale(South Africa), what legal procedures i must follow?
  • tanisha crowe said on May 13, 2012
    Hi i would like to know how do i go about setting up a loan business in jamaica small loan payday loan. please help.
  • Robert said on June 16, 2012
    Would like info. on starting a loan co. in Oklahoma. I know what daily and monthly cost are and how to run a store. Do you have to be bonded and if so how much, Do you have to be able to show so much in liquid assets up front, etc. More the legal side of it.
  • Fareeaminhas said on June 26, 2012
    Hi am interested in setting up a loan company a, based in London UK.
  • mari said on July 6, 2012
    i would like to know how to go about setting loan company in minden, la
  • sukhbir said on July 22, 2012
    how to start small finance company in india.
  • JOE said on August 29, 2012
    i would like to start a loan company in south africa. what type of license do i need and how to get it, and all the legal requirement i need to follow
  • P D Kumawat said on August 29, 2012
    how I can start a money lending business in rural areas. What is the procedures, forms, licences etc.
  • Tanisha Brown said on August 30, 2012
    I would like to start a loan business from my home in St Catherine, Jamaica. how can i proceed.
  • busi said on September 6, 2012
    i would like to start a micro lending business. i kimberley cbd how much should i think of and any other costs involved i dont have my space. i will be renting an office
  • MERLINDA MIGANO said on October 10, 2012
    I WOULD LIKE TO START A PAY DAY LOAN IN CANADA. WHAT ARE THE REQUIREMENTS I NEED? WHERE TO CONNECT FOR FUNDING? OR WHAT IS THE MINIMUM INVESTMENT NEEDED TO START YOUR OWN BUSINESS WITHOUT A FRANCHISE
  • JJUMBA JOSEPH said on November 6, 2012
    good afternoon, i would like to start-up a loan business in my area (Uganda,Kampala, Wandegeya trading center). please assist me with the information required, and also help me to form a suitable name for my business from my name above. thanks you so much.
  • Pravat said on December 13, 2012
    Hi All:- i need a loan for starting a Fish Farm business in india, any one help to finance, i will give you good int rate for same.
  • OMLA SUKHARI said on December 21, 2012
    I, would like to open a small loan business in KZN Newcastle, SouthAfrica. What are the requirements I need? HOW DO I, APPLY FOR FUNDING.
  • roshni said on January 17, 2013
    i would like to open a loan business in LAdysmith South Africa. Plz Advise me on how to obtain a Money lending Licence. Thank you.
  • Sahed uzzaman said on January 23, 2013
    We got own property house & shop. Recently we bought other property we build shop. Now we are looking for loan. House no-10354, Mososeng village, Mafikeng.
  • ashutosh thakur said on January 25, 2013
    hi, i want start loan company. pls, give guideline.
  • naudia said on January 26, 2013
    would like to start a loan company in jamaica, what are the requirements.
  • Subhendu Kumar Bej said on February 15, 2013
    I, would like to open a small loan business in Baripada, India. Kindly Inform me.
  • daniel said on February 18, 2013
    i would like to start a loan business i just need procedures to be followed and who must i register with and how to make it legal i at leaving in Groblersdal limpopo province
  • Rene said on February 19, 2013
    How to start a payday Loan business. Polokwane SA
  • Paula said on February 24, 2013
    I would like to start a loan business catering to religious groups.
  • Donald Maila said on February 26, 2013
    I would like to contact Daniel and Rene regarding starting a loan business in Limpopo. I have a small loan business and would like to partner with other people to open branches in other areas.
  • NAW beginner adviser said on March 1, 2013
    Mr donald i am interested for this proposal

    9930011623 || Loan Company Consultant

  • Thomas Swafford said on March 14, 2013
    I am interested in opening a payday/small loan office in Louisiana, USA. I am seeking $200,000.00 to be used a start-up capital to open 3 locations. I have over 37 years of business experience ( 17 of which is in the consumer finance industry
  • kazisahin uddin said on March 25, 2013
    I am starting finance loan agency in tripura, udaipur, gomati tripura.
  • Andy said on April 4, 2013
    Hi my name is Andy, i'm originally from Limpopo but currently in Gauteng,Johannesburg,South Africa. i want to start a truck business and my main problem is capital. i need a loan of about R400 000 which i guarantee u that i will repay it in 10 months or less or i can even repay double if we agree with terms. any lender who is interested in helping me please contact me @0733844031 or pleasureselepe@gmail.com. N:B i'm indeed and desperate for money but i'm not a fool so scamers please dont waste your time.
  • neisha golding said on April 8, 2013
    would love to start a loan business need some advice as in capital and interest rates for payback. thank you, I'm located in kingston, Jamaica.
  • Mohau said on April 22, 2013
    What do I need to do to be funded....Need to start an Internet Cafe.
  • crai said on May 2, 2013
    i'm from nottingham, england and would be grateful if you could give me advise on opening a short term money lending shop/pawn shop with goods taken as collateral and what license will be needed and who and how to register as a lender please. thank you very much for any help
  • badra said on May 9, 2013
    Hi, I'm interested in starting a small loan business overseas. could you please give me more information about this business, example how to collect the payment? how to charge the interest fee? who is your target? thanks.
  • Sugie Matai said on May 13, 2013
    Hi I want to start a small loan business in Pinetown, South Africa . Could you please give me information on how to go about opening a loan business. Thank You
  • John said on May 26, 2013
    Hi i would like to open a once-off loan business in Johannesburg, South Africa. Could you please give information on how to go about it e.g how to register, how to charge the interest, payment collection and if ever the client fails to pay what legal action to take. Thank you
  • mhleli said on June 14, 2013
    The question I want to asked has been asked a number of time, because I can't see any answer I'll ask it again, I'm in south africa, durban, I want to open a registered loan business and I need help into how do I start what legal procedures to follow. Thank you
  • Janie said on June 14, 2013
    I wanna start a small loan company
  • David Ramotlhabane Nageng said on July 3, 2013
    I would like to start a loan company business, how do i get license?
  • sphephelo Msibi said on July 10, 2013
    Hi. I would like to know if u guys can help me with starting a loan shack company. From the amount of registration of the company to the laws which this type of company operates within.
  • liberty.D. ndlangamandla said on July 23, 2013
    I want to start loan business in alexandra [johanessburg] south africa
  • S.PUGALENDHI said on July 25, 2013
    HI I AM PUGALENDHI IN INDIA AT TAMIL NADU, I AM LOOKING TO START A FINANCE FRANCHISE IN TAMIL NADU, IS ANY ONE INTERESTED IN INVESTING MONEY? I ASSURE THE PROFIT AND THE AGENCY WILL BE IN THE INVESTOR NAME AND REGISTERED ABIDING THE LAWS. INTERESTED MAY CONTACT ME AT 09952781045 AND MY E-MAIL ID IS endhipugal@yahoo.com
  • naveen said on August 1, 2013
    I wana start loan providing business to poor people in ncr and Delhi. How can it be a legal one.
  • jaco said on August 26, 2013
    I wanna start a loan company from home, how do I start off and do it legal. I live in the free state ,south africa
  • prashant saxena` said on August 26, 2013
    hi, i want to start an unsecured loan processing agency in india. do guide me the ways to start and also about getting the appropriate leads
  • mzomba said on September 5, 2013
    Greetings i'm in the Eastern Cape South Africa I want to start a small loan business where can I get the license, what are the regulations to be a legal business? Please help soon
  • Mike William Muvombo said on September 7, 2013
    I would like to start a loan lending business, what are the legal implications and how do I get a license and start up capital. I am a resident in Livingstone Zambia. I have offices to operate from at my residence. The matter need your urgency

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