{"id":3837,"date":"2021-02-08T10:51:50","date_gmt":"2021-02-08T10:51:50","guid":{"rendered":"https:\/\/www.jisort.com\/?p=3837"},"modified":"2021-02-08T10:51:50","modified_gmt":"2021-02-08T10:51:50","slug":"how-to-set-up-money-lending-business","status":"publish","type":"post","link":"https:\/\/jisort.com\/blog\/how-to-set-up-money-lending-business\/","title":{"rendered":"How To Set Up Money Lending Business [Explained]"},"content":{"rendered":"\n<p>Businesses need money to start or grow. Today\u2019s article is about how to set up money lending business. But before that let\u2019s get some facts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is a money lending business?<\/strong><\/h3>\n\n\n\n<p>It\u2019s a business that involves two parties; the loaner and the debtor. The loaner credits the debtor and the debtor later returns the amount with an interest.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is money lending legal?<\/strong><\/h3>\n\n\n\n<p>Yes, it\u2019s a business like any other. But the business needs to be registered and follow the legal laws of business lending.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is money lending a good business?<\/strong><\/h3>\n\n\n\n<p>Yes, it is one of the lucrative businesses. This is because the owner of the business decides the interest rates, collateral, and fees<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How does money lending work?<\/strong><\/h3>\n\n\n\n<p>Since it\u2019s a two-way transaction the borrower has to consult the loaner for a loan. They then have to select a loan and how long to take before paying the loan as well as guarantees and collateral.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Where to register money lending business<\/strong><\/h3>\n\n\n\n<p>It depends on the country because different countries have different departments. They also have different laws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to set up money lending business?<\/strong><\/h2>\n\n\n\n<h4 class=\"wp-block-heading\">1. Have a Plan:<\/h4>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.jisort.com\/lending-business-name-ideas\/\" target=\"_blank\" rel=\"noreferrer noopener\">Business name<\/a>&#8211; find a name that has a niche to attract customers and keep them hooked. Also, a name that will market itself too.<\/li><li>Target Market- think like the client, do research, and get to know where to better your services.<\/li><li>\u00a0Costs- find out how much it will cost to startup and keep running the business.<\/li><li>Charges- establish <a href=\"https:\/\/www.jisort.com\/jisort-marketplace-terms-conditions\/\" target=\"_blank\" rel=\"noreferrer noopener\">terms and conditions<\/a> showing how much you charge and other important lending details.<\/li><li>Find finances- this will help cater to all your business needs.<\/li><li>Good business practices- make sure to protect clients\u2019 data and transactions.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">2. Form a legal entity<\/h4>\n\n\n\n<p>Establish the form of business you want either;&nbsp; the sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC).<\/p>\n\n\n\n<p>Tax filing is determined by the business entity you choose.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">3. Register your business&nbsp;<\/h4>\n\n\n\n<p>Visit the relevant authorities, get the necessary licenses before you begin operations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">4. Obtain necessary permits and licenses<\/h4>\n\n\n\n<p>As you register the business make sure it covers all that you do. This prevents your business from being shut down for failing to comply with legal laws.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">5. Open a business account<\/h4>\n\n\n\n<p>This is necessary to help you keep business assets and finances away from personal finances. It also protects them in case their personal accounts are frozen.&nbsp;<\/p>\n\n\n\n<p>This also helps in filling in taxes.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">6. Set up business accounting<\/h4>\n\n\n\n<p>This is a book of records that keeps transactions, reports and this helps you see how the business is doing. It also helps in annual tax filing.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">7. Get a business insurance<\/h4>\n\n\n\n<p>This is to keep your business safe and help you recover when the business incurs losses like fire or vandalism.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">8. Establish web presence<\/h4>\n\n\n\n<p>From the website, you can share important updates, post rates, and well as terms and conditions. Also indicate FAQs that clients need.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">9. Brand your business<\/h4>\n\n\n\n<p>Establish a strong perception of the company. One that clearly stands for products and services the company provides.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">10. Start your business<\/h4>\n\n\n\n<p>Well, you already have what you need, time to start that business now.<\/p>\n\n\n\n<p>Now you have an idea of how to set up a money lending business, there is software that can help manage your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Software? Yes, <a href=\"https:\/\/www.jisort.com\/\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\">Jisort<\/a>:<\/h3>\n\n\n\n<p>Jisort is a cloud-based automated software that helps Banks, SACCOs, Credit Unions, Lending Institutions, and other financial institutions to keep records and transactions as well as generate reports.<\/p>\n\n\n\n<p>Jisort also helps to keep all information in one place.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/2BcWqXa2Xc8RJo_E6DcjYHJ8DyCpvnsMFvOfEE39GYvhhg9mLq3UyjuueXt4y012Yr--cOMfxKwK3jeJvQupXXpR8K6t6RTQAtlW8YIAwiIZcX4iVq668khi5vX2gkQtzfu1mPDu\" alt=\"Jisort money lending software homepage\" title=\"\"><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>So how does Jisort work?<\/strong><\/h3>\n\n\n\n<p>Jisort has been operating for over 6 years now and has been serving both local and international clients.&nbsp;<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.jisort.com\/member-registration\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jisort system<\/a> offers an alternative real-time integrated banking channel that allows Financial Institutions to offer banking services at minimum cost.&nbsp;<\/p>\n\n\n\n<p>The system has integrated with banks and other payment gateways. Jisort <a href=\"https:\/\/www.jisort.com\/cloud-core-banking-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">Core Banking System<\/a> has successfully integrated with:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Banks<\/li><li>Mpesa<\/li><li>PesaLink<\/li><li>Credit Reference Bureaus (CRBs)<\/li><li>Vodacom<\/li><li>Tigo<\/li><li>Among others<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/J0TLoGM3GPTPEs0af8uqI2O681VqZ8f-4Ob2AHWSbnZA41KmCD134OGkc6q_zM6jolw6mydVt-8JS4nY90p3bdguRPfeWynNAqmP-rSMMLB0-jEBzzPl26YNvZD4vnKdANu7huxl\" alt=\"Jisort system demo\" title=\"\"><\/figure>\n\n\n\n<p>This is a <a href=\"https:\/\/www.jisort.com\/jisort-banking-software-as-a-microfinance-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jisort System<\/a> demo:<\/p>\n\n\n\n<p>It shows how the system is all in one, simple that anyone can use.<\/p>\n\n\n\n<p>It also indicates the number of clients, completed loans, the active ones, and the pending loans.<\/p>\n\n\n\n<p>The system also has a graphical representation of the income versus the expenses in the last three months.<\/p>\n\n\n\n<p>Here is the <a href=\"https:\/\/www.jisort.com\/pricing\/\" target=\"_blank\" rel=\"noreferrer noopener\">system pricing<\/a>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/zL57fXtWKP7-kxca4hbzDIwkS31Bt7iXF86CRAeoULPgoU-95pXLgVbBGtSiblin4gAjDM5tzCRQR-HSxNF_YsGJezsMXdqc4DAvhXXHP_9E6_7itRdWw1qbthRdur2-8IQ6i6rL\" alt=\"Jisort system pricing\" title=\"\"><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why Jisort?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Simple- get an all-in-one platform that helps you manage all clients at a go. Besides, you need no special skills to use the system.<\/li><li>Generates reports- get to know how your business is doing and how clients are transacting.<\/li><li>It\u2019s is affordable- manage all your clients and keep their data safe for as low as $20.<\/li><li>Payment schedules- has integrated with banks and other payment methods this ensures your clients have freedom.<\/li><\/ul>\n\n\n\n<p>Well, you have the how to set up <a href=\"https:\/\/www.jisort.com\/how-to-start-money-lending-in-uganda\/\" target=\"_blank\" rel=\"noreferrer noopener\">money lending business<\/a> and the managing software. Why don\u2019t you sign up now? Get all the features and keep records of all your clients in one place.<\/p>\n\n\n\n<p>Get <a href=\"https:\/\/my.jisort.com\/signUp\/\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\">Jisort now<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesses need money to start or grow. Today\u2019s article is about how to set up money lending business. But before that let\u2019s get some facts. What is a money lending business? It\u2019s a business that involves two parties; the loaner and the debtor. The loaner credits the debtor and the debtor later returns the amount [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":3838,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[214],"tags":[],"class_list":["post-3837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lending-business"],"blocksy_meta":[],"acf":[],"_links":{"self":[{"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/posts\/3837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/comments?post=3837"}],"version-history":[{"count":0,"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/posts\/3837\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jisort.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/media?parent=3837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/categories?post=3837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jisort.com\/blog\/wp-json\/wp\/v2\/tags?post=3837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}