Categories » finance and business » business » business by reviewedwikihow to start a money lending parts:preparing to start the businessregistering your businesslaunching your businesscommunity q& you want to start a money lending business, you will need to decide what kinds of loans you want to make—payday, mortgage, or installment loans. You may choose to start a lending business using only your own money or money from a group of investors.
Starting a money lending business will require that you develop a business plan and gain the necessary government a company name.Make sure to get a phone and fax should search your state’s business filing office to find out if a name has already been taken.
By writing a business plan, you will force yourself to think about the current likelihood of success as well as future growth opportunities.
You will need to briefly describe the nature of your business and why you think it will be successful.As a startup, you should focus on explaining how your experience and background will contribute to the business’s success. Explain the nature of the business, your intended market, and the market needs your lending business will satisfy.
6] for example, you may want to make small loans to new immigrants in your community seeking to start a business.
However, this element is so critical to a money lending business that you should spend extra time considering how you will fund the loans that you extend to money lenders have dipped into their retirement accounts, such as their iras and 401(k) accounts, to fund their loans.
A successful money lending business does not lend to anyone who walks in the door.
You will need coaching and advice from people who have started successful money lending businesses themselves.
Accordingly, you should find seminars and national conferences to attend where you can network and rub shoulders with experts in the business.
Also, an attorney can help you incorporate and fill out other required find an experienced business lawyer, you can visit your state’s bar association website, which should run a referral can research any attorney by visiting his or her website.If you are starting a lending business for real estate, then look for an attorney who has real estate experience as your domain name.
However, a website is a must nowadays for any business, regardless of the business’s can purchase your domain name from various registrars.14] you should talk over each form with your attorney, who can advise you as to which corporate form is most appropriate for your money lending incorporate, you will have to file articles of incorporation with your state.
You will also need permission from your state in order to legally start a money lending business.
You must contact your state business licenses office and search for applicable licenses or permits.
The small business administration has links to each state’s office at https:///content/er your business name.
If you choose as a business name anything other than your own personal name, you will need to register it with the necessary authorities.
If your money lending business has investors, then you may need to file with the appropriate securities commission.
If you make a public offering of the securities, then your lawyer will have to register you with the should check with your attorney whether or not you need to register the securities and which agency you need to register a business tax identification number.
Unless your money lending business is a sole proprietorship, you will need a tax identification number, also called an ein.
Lending businesses most often get into trouble when they are trying to collect money from their customers.
Before going into the lending business, be sure you understand what you can and cannot do to collect money owed to federal law, specifically the fair debt collection practices act, you are prohibited from harassing or abusing the customer that owes you money.20] if you fail to obey federal law, you and your business could face stiff civil penalties.
Because you don’t know if your business will be successful or not, you shouldn’t sign an initial lease for longer than out what other expenses you might incur in addition to the rent.