Pinterest Email Make sure that you have a presentable office so that your clients will not be scared in acquiring your service.
This venture, if properly run, is very lucrative as the demand for cash is present in almost every community. People and small businesses go to micro-lenders even if the interest rate is higher than banks.
The first and most important reason is the difficulty in obtaining small loans from banks. Secondly, when the need is urgent, banks cannot beat the instant availability of cash offered by micro-lenders. Third is that micro-lenders usually do not require collateral, while banks generally need to have collateral before they release the loan.
If small money lending business plan are going to start your own lending company, here are the steps to take: Comply with registration requirements.
You will need a minimum of one million pesos paid-up capital. Know the current legal requirements. Note that there are other laws that should be complied with. Study your target market.
This is essential to guide you on where to locate your business, your renovation expenses, marketing and other matters.
Know where there are the best opportunities and the least competition. Even the way your office looks would have to be in accordance with the income bracket of your target market. Your study of the market would also be very useful to determine the type of loans to offer. Hire the right employees.
You will need only three employees if you are just starting and each of them has a critical role. There must be a loan application processor, collector and bookkeeper. Your loan processor and bookkeeper must have a meticulous personality.
A single mistake and you may be unable to recover your loan or, in the case of the bookkeeper, get you into trouble with the regulatory agencies. Your collector must have both patience and firmness at the same time in dealing with your clients.
Remember to be careful in selecting your employees because it will be almost impossible to change their personality if you find them unsuitable for the position. Learn how to screen and collect from clients.
This is actually the core competence that you must develop in order to be successful in money-lending. Know what borrowers you must avoid and how to detect them. In the matter of collection, it is vital to know what you can legally do to avoid complications.
Recently, the small claims court was established for loans whose principal is not more than P, This may save you money because no lawyers are allowed in the proceedings.
Micro-lending can be your passport to riches, but like all ventures, you need to know how to operate the business. To know more about this business, BusinessCoach, Inc.
Contact 0202or visit www. Click here to view details of the seminar: C-4, Sunday, August 12, Written by Ruben Anlacan, Jr.
May not be reproduced or copied without express written permission of the copyright holders. Download Testimonials Testimonials It was so great attending this training!
I am now confident to handle in-house events in Toyota. I will definitely attend more of your trainings.Microlending is a type of business financing that better thrives during recession.
It focuses on small loans to help small businesses and new entrepreneurs in establishing or advancing their business. A Sample Micro lending Business Plan Template Business Overview Even in hard economic conditions, people and enterprises go for loans to be able to pay for the purchase of real estate and other transactions, which in turn make the lending business a recession-proof business.
6 Tips for a Successful Private Lending Practice was our fourth full year in the private money/hard money lending business. Last year we originated loans, making our four year total surpass privately-funded loans.
A micro-lending business is one that lends small amounts of money, usually to individuals or micro businesses. This venture, if properly run, is very lucrative as the demand for cash is present in almost every community.
QUESTION ON Microfinance: Micro-lending Money and Small Financing Business. I have a capital money to put up a microlending and small financing money, My problem is I have only few idea about this business, That’s why I need your help and idea about this.
Both hard money lenders and private lenders alike a money lending business needs to document their loans right down to the smallest details.
Even if loans are never finalized, it is a good idea to keep the portfolio on hand in case those clients come back at a future date.