How to Open a Small Business

[Brown_Pride]

So i'm curious if anyone has any experience in small time financing, i'm interested in opening up a business that provides smaller loans to people, anyone have any experience in this industry? ...or interested in investing

Anyhow i'm obviously not going to tip my hand right now but the long and short is i'm looking to provide 100-$1000 personal loans backed by collateral.

I have several places interested in this service already I just need to hammer out funding.

Even if there is a way to become a broker for a larger firm already and sell packaged financing on behalf of a larger company...

either way i'm just starting the research and thought I'd see if anyone here had any experience.

 

[mc_brew]

i have no experience in this, but i find what you're talking about intriguing.... i think i'll do some research into this myself

question are you just focusing on loans to individuals or are you open to providing loans to small business (like a mom & pop restaurant or something)... thx

 

[Brown_Pride]

i have no experience in this, but i find what you're talking about intriguing.... i think i'll do some research into this myself

question are you just focusing on loans to individuals or are you open to providing loans to small business (like a mom & pop restaurant or something)... thx

for now individuals. Possibly later smaller business loans but from what i'm researching the laws that govern the various types of loans in my state differ so you'd have to get multiple licenses.

In my state for instance If i were to provide a personal loan there is only so much money I could collect in interest, where as if I apply the same loan with collateral PLUS say a title loan the % changes.

As of right now I'm still researching so anythign you can find let me know.

There are a few "sign up to be a reseller of loan" type places I was able to find but they struck me as...fishy....

 

[Uncle Trill]

 

[theworldismine13]

That sounds like a payday loan business, a lot of those also do car title loans, where your title is the collateral

 

[mc_brew]

That sounds like a payday loan business, a lot of those also do car title loans, where your title is the collateral

i like the idea of a car title loan better because at the amounts of $100 - $1,000 there is not much recourse if someone decides not to pay the loan back...........

 

[Brown_Pride]

That sounds like a payday loan business, a lot of those also do car title loans, where your title is the collateral

it's sorta something like that, and actually in AZ it would be almost exactly like that in terms of the laws governing them. AZ significantly changed how payday loans work, the maxim interest one can collect is FUGGIN LOW, something like 200 payday loan places closed up when they stopped allow crazy inteest rates. Title loans allow for a slightly higher interest rate and are backed by a tangible and because of the laws and what i'm thinking i'd basically have to set up an auto title loan type of place, though the means of acquiring customers is what my idea revolves around.

Early estimates have my idea's starting costs at around 200k...but like I said i'm still working on some details.

 

[theworldismine13]

have you ever checked out prosper.com and lendingclub.com i was thinking about doing those but i read its easy to get burned

 

[Brown_Pride]

have you ever checked out prosper.com and lendingclub.com i was thinking about doing those but i read its easy to get burned

yeah i've read and heard the same thing and after watch a few episodes of "shark tank" i think i'll try to secure something myself and or save up some seed money. The market isn't going anywhere anytime soon.