How to make money by lending loans

[Immilash1]

making money by lending loans might be a good business. but you need to have a strong aggrement between the both of you,because many people nowadays doesn't take back loans.

 

[Niftyyem]

Loans are so easy to take but difficult to pay back, so, I consider this line of business very risky. There has been case of someone who absconded when the time came to pay and the best the creditors could do was spread the news amongst his contacts but couldn't hold on to anyone to pay back.

 

[tusziget]

Peer-to-peer loans can be a good source of income for someone, who has plenty of cash at his disposal. To lend money as business, it is most easily accepted on foreign platforms. These sites make it easy to get in touch with the right borrowers for you.

 

[kayode10]

You will need to establish a business on loan facility before you can give out me to the people effectively. You are going to lose a lot of money if you are just planning to give out loan in person to the people.

 

[joy101]

Loan business is really a good way of making money but the business is very a risk business, going into such business one need to be very careful.

 

[Victorial]

You just have to be careful with these people you are going to loan them money to. Some of them do not have plans to pay back the money. I have seen how these online loan apps do suffer while collecting their money back

 

[Heatman]

Well this model of business sounds interesting and also good. But since I am not one that is poised to collecting loans, it won't really be my type of business I would want to get Involved in

The kind of risk that is associated with business of giving loan is very high because most people that take loan find it very difficult to pay it when they are supposed to pay it.

 

[Stnicholaz]

There are new businesses springing up this year. Many of them are also looking for ways they can generate capital for the business to grow.

This makes it possible for one that is creative to setup up a loan scheme where you get to lend money to these businesses while you make interest on loans given at the completion of the loan. Have you thought about this method of making money?

It is a nice business idea but I have my reservations using my experiences and peculiarities of my environment. Here, it is very easy to get loan but paying back is a major challenge.
Major financial institutions are finding it difficult to recover loans given to customers. I believe the same business will face same challenge. The last people to give loan are family and friends, getting back the capital will be challenging not to talk of the interest.

 

[Smiles20]

Here is what is known as peer-to-peer lending in cryptocurrency world and also in the financial markets where you are going to directly borrow your money to somebody and then you are going to be making interest on it.

 

[tyrim88]

Sure! It will be a creative business to look into, you'll make huge pofit from it, however we cannot neglect some factors to consider when going into giving out loans if we ever think of going into that line of business or are already in it.

One of such should be your target market, the kind of people you want to lend money to, will they be willing to pay back.

Income/employment history: as a lender you have to consider the income of your customer to know is he/she will be able to pay back such loan.

Setting up a loan outfit to cater for the needs of genuine persons of interest is not actually an easy venture to go into,because when it comes to the issue of recovery of the loans it could be a different ball game althogether,reason most banks give out loans to salary earners with account domicile in the lending bank.

 

[ganibade]

You can make money by lending loans not easy as mentioned. Not all customers that borrow money can return it in speculated time. This cause problem for the lender to enter problems.

 

[greenie]

To run an online loan initiative, you need to develop a website and an app for it. Its not easy at all, you spend money to buy automated softwares, bots that will help to secure the profile of those taking loans from your company. Proper KYC verification software machine need to be implemented also, for you to be safe with lending out your hard earned money to individuals.

 

[eLdavis]

You can make money by lending loans not easy as mentioned. Not all customers that borrow money can return it in speculated time. This cause problem for the lender to enter problems.

Exactly, this is just the simple truth, you would come across so many persons that would give you a hard time, it's best to just avoid such business if you do not have the hear to carry it out.

 

[Kaffyfolla]

The art of lending or financing is a concept that has been around since the beginning of civilization itself.

 

[tyrim88]

I regard the loan business as a very risky one. I have gone through comments above and I will like to reiterate on the fact that the success of the business depends on the kind of people in your area. For instance, such business can not strive on my area because people here would take loan and will never make repayment.

I think the issue of esterblishing a loan business depends on the technique of the proprietor that is involved would employ,if there is a very strick measure of optaining the loan like the use of collatoral,that can checkmate the rate of defaulters.

 

[Lens]

I think the issue of esterblishing a loan business depends on the technique of the proprietor that is involved would employ,if there is a very strick measure of optaining the loan like the use of collatoral,that can checkmate the rate of defaulters.

Possibly, using the collateral Will play a big roll in cushioning the effect of people making away the loan that was taken. This is equally important.

 

[Shigobad20201]

Exactly, this is just the simple truth, you would come across so many persons that would give you a hard time, it's best to just avoid such business if you do not have the hear to carry it out.

Starting a loan business is a good and lucrative one because I have seen loan company taking 10 -12% interest in each loan sent out to the people but some customers are always difficult in paying back their debt.

 

[tyrim88]

Possibly, using the collateral Will play a big roll in cushioning the effect of people making away the loan that was taken. This is equally important.

One thing that is prevalent in the financial sector expecially lending out funds,is that most persons will just conclude in their mind that the collaterial they are bringing in is to exchance it for the loan.

 

[LadAckerman]

To put a finer point on it: Banks profit from the difference between what they earn in interest from borrowers and what they owe in interest to depositors and investors. When a borrower fails to repay their debt, the lender could profit even more.

 

[Shigobad20201]

Apart from banks that normally lend people loan , there are also private organisation that uses lending people loan as a business to make money online and offline