Zambia is a land-locked country in Africa situated on a high plateau in south-central Africa. It is an attraction site for the world’s largest waterfall(Victoria Falls). However, today we will be talking about how to start a money lending business in Zambia.
So before all that let’s get some insights.
What is a money lending business?
It is a business transaction that involves two parties; the creditor who lends money and the debtor who borrows money.
Before the transaction occurs the debtor must agree to terms like interest rates and fines on late payments and many others.
Lending can be done between one person and an organization, or to one person; alternatively, an organization can lend to one person or another organization.
Is this business legal?
Yes, it is a business like many others. But for the business to be legal it should be registered under the right legal authorities.
It must follow the rules and laid laws on lending as well as banking scales about interests and fines. It shouldn’t surpass the country’s regulations.
is this business profitable?
Yes, it is a good money-earning business. Of course, it comes with risks but with risks come great rewards.
So long as one doesn’t run out of money to lend, the business will continue booming and earning one extra coin.
How to start a money lending business in Zambia
1. Find a name
This is the niche that will attract and market your brand. It is important to choose a name that will stand-in for your business.
A good name should be:
- Scalable- that is it should allow for expansion.
- Simple- it shouldn’t be ambiguous.
- Descriptive- but shouldn’t be too vague or too general.
- Well, read more here.
Having good information about the business, market and other important business factors helps a lot. This also saves one a lot of trouble.
Research too helps one plan ahead. It also formulates the strategies to use and how to counter different trends.
Research keeps one informed on what people require. Besides, one gets to know where the economic trends lie.
3. Gather funds
This is the money to be used to register, start up the business, pay for office space and supplies. The cash too will be used to pay for other miscellaneous.
One needs to have more than enough because starting up is expensive, besides it requires money to complete many steps.
4. Register the business
This makes your business recognizable by the state. It ensures that customers can conduct business transactions with your business.
Pay the registration fees and take the next step of obtaining licenses. The licenses will allow one to conduct different business transactions.
5. Obtain the right licensing
Make sure that the license allows all transactions of the business. It doesn’t matter whom you lending to but the right licensing saves one trouble from the law.
This also keeps the business legal and trustworthy. Customers always need assurance and safe of all transactions.
6. Understand regulatory laws
Rules are important as they are guidelines to help one conduct business transactions. They show one how to handle different issues in the business.
They also form part of formulating the business terms and conditions.
7. Open a new bank account
A new account helps one separate personal funds from business funds. This is essential because at times personal accounts may be closed which may inconvenience the business.
This also keeps the business assets safe for it helos one safe. When sharing an account one may use the business funds and end up not having enough for the business.
8. Formulate terms and conditions
These are the guidelines that customers must follow for smooth business transactions. It also indicates the lending conditions and other details like time duration and fines.
They also give information on how the business operates and what one should perform transactions.
9. Create a website
This is a good strategy. It creates an online presence, which customers can use to get information.
The website too can be used to post updates, terms and conditions, and many other business changes.
It’s essential to have a website. Doesn’t matter if you are low on a budget here is a free site builder to help you go live fast and easy.
10. Establish good business practices
Everyone needs to feel safe when transacting. Customers need to know that their data is always safe.
Make sure that your business follows all laid regulations and it also protects the privacy of all clients.
11. Market your business
This strategy involves increasing awareness by reaching out to many people. Of course, people are the best in marketing; word of mouth is the best tool.
There are many ways one can market but it’s essential to find the best that works for the business.
12. Start the business
This is the final step. Once one has worked on the above 11 steps the business is ready to go live.
Well, it is important to have done thorough research on opponents of what they have been offering.
Well now you know how to start a money lending business in Zambia, here is a way also to manage the business.
There is a web application that can help one with all this workload. Introducing Jisort a web-based application for banks, credit unions, SACCOs, and other financial institutions.
Jisort is used to automating transactions and manages clients’ information, keep track of their transactions and generate reports and business statements.
Jisort has been operating for over 6 years and has specialized in the development of core banking systems and applications by applying the latest technology.
Reasons to use Jisort:
- Affordable- for as little as $20 one can manage all their clients’ data keep track of their transactions and generate reports and business statements.
- All in one- manage all transactions from a single application without having to go through many procedures.
- Get more information on Jisort here
The system demo:
As it shows it is an all-in-one platform. Managing clients’ information is easy so are different transactions.
Having such a system is the best way to solve how to start a money lending business in Zambia. Besides, Jisort guarantees to help out with the workload.
Get the Jisort system now.
Starting a business is always a huge step, it involves planning and good finances. One has to be prepared to hit rock bottom and have other alternatives.
Managing a business has become easy with software like Jisort it is easy to keep records and reduce the workload.
Best of luck as you dive into the business world.