Money is a scarce resource. Everyone at a time requires an extra dime to help supplement the much they earn. Well, today’s article is about lending business ideas.
It is a new business that people have adopted. This business is booming for its flexibility and good terms. Besides, lenders are boosting businesses and helping others.
What does the lending business mean?
It is the practice of giving people money after agreeing to certain terms. The lending can be in form of money or other assets.
A lender gives a borrower money or other assets and expects payments with an interest. Interest rates vary as per loans and the terms.
It is simply giving a loan that forms a debt which the borrower ought to meet as per the agreed terms and conditions.
Is this business profitable?
Yes, it is a good source of income. Since lenders have become flexible opportunities have opened for them to make money.
They earn money from interests, due fees, collateral, and many other terms one agrees to. It is a good business one should consider starting up.
Giving a loan of $1,000 with an interest rate of 16% per year.
The creditor gets an interest of $26.78. Now imagine having 10 clients that translate to $267.80 which is exceptional pay.
Business name ideas for lending
It is from names that perceptions are born. Always make sure to have an easy-to-remember and one that is descriptive.
Lending as a business too needs a good name. A good name contributes to building a reputation, legibility, and many other important aspects.
One ought to consider the following:
- A short and catchy name that will attract customers and also should make them informed.
- Keyword name- having the business name as a keyword will help the business a lot. It also helps in search results on Google.
- Descriptive- the name should stand-in for the business. One that people read and get the full idea of the business.
There are many other things one should consider. Read this on how to choose a good name for your lending business.
How to start a lending business
Before starting any business one needs a plan. Having a good plan saves the cost and hassle one would go through.
One also needs good lending business ideas. Here is a list of the things to do:
- Have a business name- this is what sells your business. A good name creates
- Have a plan
- Form a business entity
- Register the business.
- Get business accounting.
Also consider finding more about starting a lending business from this article. Starting a business is a process.
People often require loans. As a lender however one ought to understand the risks involved and decide on whom to lend to and whom not to.
People often make mistakes when starting up. Making the right decision will align the business and help you save a lot.
Here is whom to lend to and why:
1. Property Developers
Property developers often require extra cash. Granting them loans helps them buy, improve it through renovation, then either selling it for a profit or renting it out to tenants.
Cash flow for them isn’t a problem. Lending to them is secure in that one is guaranteed pay for what they earn on a monthly basis.
2. Matatu and Taxi operators
This is another great group to lend to. This group also has money security in that they receive and interact with it daily.
They too require money to maintain the cars and other services. Lending to them also increases the cash flow.
Having them on your team will promote the business. They interact with many people and can give your business a boost fast and easily.
This is the group responsible for feeding the nation and growing the economy. They often require extra cash to purchase products, pay laborers and perform many other farm operations.
They too also have a vast connection of people. Lending to them will not only improve their farms but also create a reputation for you. Farmers are always dedicated and always ready to produce good results.
4. Small business owners.
This is also an important group. They are responsible for many things and for them, cash flow is an important part of their transactions.
They also require cash to manage their day-to-day activities. Buying, selling, and transportation require money. Lending to them allows them to transact more and build trust in your business.
Lending money is a risky business, one needs to have an idea on whom you lending to. One also needs to have a means of following up.
There is a way one can eliminate all these doubts. One also relaxes for the workload also is going to reduce.
Here is Jisort: a web-based financial tool for Microfinance Institutions, SACCOs, Banks, Cooperatives, Credit Unions, Lending Organizations, and financial institutions.
Jisort is used to manage clients’ data and keep track of transactions as well as producing reports and statements.
Jisort has been running for over 6 years and has interacted with both local and international clients.
It has specialized in the development of core banking systems and applications by applying the latest technology.
Here is the system demo:
Well from the system demo its evident that:
- It is an all-in-one platform- that makes it simple and easy to manage all the clients.
Having this system eases the process of record keeping. It also helps one save time and improve the business.
Why use Jisort:
- Simple- since it is an all-in-one platform management of clients and their data is fast and easy.
- Get reports- it is easy to get a report on clients’ transactions and business statements.
- It is affordable– for as low as $20 manage all your clients’ data and get reports.
- Many integrations- one is not limited to one mode of payment.
Jisort is the best system. However, read more on Jisort here.
Having a good financial system will save one a lot. Besides, it’s the funds that run the business and promote growth.