Have you been thinking about starting a lending business in South Africa?
This article is for you.
You are going to learn some steps and tips you can implement now and get started on the right note.
See, lending is a lucrative business, and has the potential to be a really good cash cow for you and your family.
But don’t be fooled, as much as it has the potential to enrich your pockets, it is a risky business.
Giving money out to strangers is not easy. They may or may not return, and that is what makes this business interesting.
As such, not very many people venture into these territories. But if you are a risk-taker, this is your forte.
And here are steps to take to start a lending business in South Africa.
As they say, if you don’t have a plan, you are planning to fail.
This is true, especially in business.
You need to have things in place. You need to map out where you are going and what is needed to get there.
The planning stage involves looking at your target market and figuring out who they are.
By doing so, you get an idea of what your lending business can charge them.
Also, you need to figure out how much it will cost your lending business off the ground.
This involves examining operational costs and such expenses. Here, you can figure out whether you actually have the money needed for the business.
And then there is the aspect of making money. You need to figure out how your business will make money.
The loan business in South Africa is a risky venture riddled with lawsuits. If you are going in, you need a safety plan.
Registering a legal entity is what you need.
By doing so, you are shielding personal assets in case of lawsuits.
Operating a lending business in South Africa attracts a certain amount of taxes. While we can tell how much, it is something you can find out on government portals.
Paying taxes is the duty of every citizen. As such, this should be your next step, obtaining a tax PIN or certificate.
The goal here is to separate business finances from your own.
And having a business bank account, or credit card helps to keep things in order.
Also, separating business assets helps when lawsuits strike. It shields your assets.
The way you keep financial records will make or break your lending business in South Africa.
This is where Jisort comes in.
Jisort is a lending platform created with you in mind.
It also forms the back office core that manages the appraisal process, repayment, accounting and bookkeeping, reporting and business intelligence, SMS and Email Communication Channel among others.
Learn more here.
The last thing you want when running a lending business in South Africa is to end up on the wrong side of the law.
To avoid that, you need to get all the paperwork in order including licenses and local permits.
With these on your hand, you can start and run your loan business without worries.
This also helps you avoid incurring hefty fines and possibilities of ending up behind bars.
As mentioned earlier, the lending business in South Africa is risky. Your capital is at risk at all times.
By doing so, you can conduct business without the worry of ending up where you started in case your client default.
You need a loan business website.
This should help capture leads on autopilot and serve 24/7.
With a website in place, you should also consider social media marketing. Join all the popular social platforms including Facebook, YouTube, and Twitter.
Follow these 8 steps to start a personal lending business in South Africa.
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