Businesses need money to start or grow. Today’s article is about how to set up money lending business. But before that let’s get some facts.
It’s a business that involves two parties; the loaner and the debtor. The loaner credits the debtor and the debtor later returns the amount with an interest.
Yes, it’s a business like any other. But the business needs to be registered and follow the legal laws of business lending.
Yes, it is one of the lucrative businesses. This is because the owner of the business decides the interest rates, collateral, and fees
Since it’s a two-way transaction the borrower has to consult the loaner for a loan. They then have to select a loan and how long to take before paying the loan as well as guarantees and collateral.
It depends on the country because different countries have different departments. They also have different laws.
Establish the form of business you want either; the sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC).
Tax filing is determined by the business entity you choose.
Visit the relevant authorities, get the necessary licenses before you begin operations.
As you register the business make sure it covers all that you do. This prevents your business from being shut down for failing to comply with legal laws.
This is necessary to help you keep business assets and finances away from personal finances. It also protects them in case their personal accounts are frozen.
This also helps in filling in taxes.
This is a book of records that keeps transactions, reports and this helps you see how the business is doing. It also helps in annual tax filing.
This is to keep your business safe and help you recover when the business incurs losses like fire or vandalism.
From the website, you can share important updates, post rates, and well as terms and conditions. Also indicate FAQs that clients need.
Establish a strong perception of the company. One that clearly stands for products and services the company provides.
Well, you already have what you need, time to start that business now.
Now you have an idea of how to set up a money lending business, there is software that can help manage your business.
Jisort is a cloud-based automated software that helps Banks, SACCOs, Credit Unions, Lending Institutions, and other financial institutions to keep records and transactions as well as generate reports.
Jisort also helps to keep all information in one place.
Jisort has been operating for over 6 years now and has been serving both local and international clients.
The Jisort system offers an alternative real-time integrated banking channel that allows Financial Institutions to offer banking services at minimum cost.
The system has integrated with banks and other payment gateways. Jisort Core Banking System has successfully integrated with:
This is a Jisort System demo:
It shows how the system is all in one, simple that anyone can use.
It also indicates the number of clients, completed loans, the active ones, and the pending loans.
The system also has a graphical representation of the income versus the expenses in the last three months.
Here is the system pricing:
Well, you have the how to set up money lending business and the managing software. Why don’t you sign up now? Get all the features and keep records of all your clients in one place.
Get Jisort now.