Business of loaning out small amounts of money

[capri]

Every now and then, individuals who are unable to access formal credit channels need to borrow small amounts of money. A business of loaning small sums in a somewhat informal environment would thus be of immense help to these people.
I have noted that these types of businesses earn significantly high profit margins.

What do you think about such business?

 

[cherry123]

It id not a bad business idea but you should be careful with the people you are loaning the money. You should always do your research on a person before parting with your money

 

[Heatman]

Any kind of business that involves learning money and borrowing money is not something I would be interested in doing because I am not comfortable with that kind of business.

 

[Niyi Briggs]

There are climes that some businesses are very risky to do and my country is risky for this kind of business. We have a poor debt culture and I won't encourage anyone to start lending business in my country.

 

[eldavis]

I have heard about people who are into this kind of business and they are making good money from it, but i do not think i can go through the stress of making them pay me my money.

 

[cherry123]

Yes people who are into this are making good money due to the high interest they charge for the service. But the disadvantage is how to get your money back

 

[IB D]

The loan sharks that are doing this in my country are having great difficulty getting their money back. A country with no established database is not a place to do that kind of business.

 

[Springtime]

In my location, other than banks, there are already many financial institutions which lend money to people. I receive cold calls from these companies to see if I need to borrow money. In any case, I am not comfortable doing such kind of business.

 

[astutimeliana723]

It id not a bad business idea but you should be careful with the people you are loaning the money. You should always do your research on a person before parting with your money

That's right I agree with you. There are many cases of people not wanting to pay their debts, for various reasons. So that it is not a profit that is actually a loss.

 

[cherry123]

Yes, you got the point. With this kind of business you need to be sure that you are not allowing the debt to be much else you would not see much profit

 

[Blessed19]

There's something about running and repaying your debt back. It is easy to collect loan from someone or a channel but paying back to individual who takes it as a business is the issue as many have collected loans but have been unable to pay back on time.

 

[capri]

It id not a bad business idea but you should be careful with the people you are loaning the money. You should always do your research on a person before parting with your money

I think a business can implement a policy of requiring any person intending to borrow money to deposit some tangible item that would serve as a form of security in the event that a borrower becomes unable to repay her loan.

 

[cherry123]

You are right , there should be a sort of collateral that would serve as a form of security or back up . Sometimes borrowers becomes unable to repay their loan.

 

[Bisolami]

Every now and then, individuals who are unable to access formal credit channels need to borrow small amounts of money. A business of loaning small sums in a somewhat informal environment would thus be of immense help to these people.
I have noted that these types of businesses earn significantly high profit margins.

What do you think about such business?

I actually come from a country where people find it very hard to pay back their loans. If I decide to loan out my money to someone, it will be very hard to get it back. I may not even get it

 

[Heatman]

I have heard about people who are into this kind of business and they are making good money from it, but i do not think i can go through the stress of making them pay me my money.

Any kind of business that involves loaning money or borrowing money is not something I will be interested in doing because I've never really find it appealing at all.

 

[Niyi Briggs]

I think a business can implement a policy of requiring any person intending to borrow money to deposit some tangible item that would serve as a form of security in the event that a borrower becomes unable to repay her loan.

This is the only way that this kind of business can work in my clime. What you are depositing must be three times in value the amount that you are applying for as loan. Beyond that, I can't deal with you. N

 

[Suba]

Many people practice lending money in small amounts, and are usually repaid in installments either paid daily or weekly, especially given to small traders, so you must actively ask for their payment according to the agreement.

 

[timewo]

Payday loan business for salaried people is very profitable, there are many companies offering the loans, and they often required marketing content for their business. Young people have a lavish lifestyle so they require more money.

 

[Etini Willie]

Payday loan business for salaried people is very profitable, there are many companies offering the loans, and they often required marketing content for their business. Young people have a lavish lifestyle so they require more money.

This can only be profitable if the loan company has the access to draw the funds by itself when the salary enters. Anything other than that, the business is not going to work.

 

[timewo]

Usually for payday loans, the borrower has to give the lender permission to directly withdraw the money which is due from the bank account to which the salary is credited. This reduces the risk for the borrower.