Cash Loans Business Ideas - Opportunity - Riches Await!

Hello, I run a unique business helping people to start their own cash loans business in the UK.
The business is 'home collected credit'; whereby you loan small amounts of cash to householders and collect the payments weekly from the customers' homes.
This activity is regulated by the Office of Fair Trading and you have to hold a current consumer credit licence to operate within the industry.

When you apply for a consumer credit licence, the Office of Fair Trading consider 'home collected credit' to be a high risk activity and insist that you complete an extra document called a CRP1, (Credit Risk Profile) which asks you about what training you have undertaken to enable you to run a loan business in compliance with all the legislation.

The OFT will ask to see all the documentation that you will be using for the business, and what systems you are going to adopt to ensure compliance with the Early Settlement Regulations. Your credit agreements also have to conform to a prescribed format, and be set out in a particular way.

There are also many other requirements such as having a documented customer Complaints procedure, Anti Money Laundering information, Advertising examples etc etc.

You also need to consider who you are going to lend to, how much you are going to lend, how much APR to charge and how to address the calculations to make sure that the APR is correct.

We advise on all these matters as part of our comprehensive training, and there is a written manual to take away with you, as well as all templates to run the business.


Along with the thorough training and document templates, we also provide our specifically designed loan business software to handle customer accounts and to automatically calculate early settlement rebates, amongst other things too numerous to mention.

If you tried to start a home collected credit business without the benefit of our considerable experience to call on, you would probably lose huge amounts of cash through bad lending decisions, or you would have difficulty in identifying the type of customers who wish to borrow and are least likely to default.
We have learned over many years how to minimise the risks whilst maximising the profits.

We are offering a 20% discount for B.I.A.O members who mention B.I.A.O when they respond. The normal pricing is on our website www.briteways.com
I am happy to answer any questions; either by email info@briteways.com or by telephone: 01407 721 026 - mobile 07813 899 942 - Ali or Gina

Hi efiom, you can ring me on: 01407 721 026 or mobile: 07813 899 942 to have an informal chat about the business - Gina

Good Afternoon ,

Can I thank anyone on this site who may be able to help. We are currently moving into the Credit business.Our existing company is already dealing with many clients who are buying equipment from us. We have looked at other markets and the PayDay Loan or Home collected have been advised to us. We have the necessary licences , Capital and expertise apart from marketing. I noticed from a post from Alibaba that bad debts are highest in the start up of the business.We have a business associate who has suffered in the PayDayLoan market.

Our main problem is that we operate from a affluent town and therefore identifying doorstep customers locally is hard. We would compete with some of the major players due to the small amount of potential customers available.

We are looking for advice and possibly consultancy services to help us progress this development. A friend has been in the PayDayLoan business and has been hit by a number of salaried people failing to pay at the end of the agreement. he is disillusioned by this due to having to take them to court etc and is considering other investments.

We are aware of this and would welcome advice or any other help.

To Gina  which is better PayDayLoans or Home collection 

Best regards

Thanks Gina ,

We are progressing both sides of the business but are still finding it hard to gain Door step customers our marketing ideas are limited and our location in a reasonably affluent town is making it harder.

Would welcome some marketing ideas.

Hi Gina ,

Been away and agree what you say , we are based close to M25 outer London suburb so is it best that I call you.We need that extra help in getting customers as the ones we have taken on have been no problem we have the ability to serve and process 100 plus very quickly.

 The PayDayLoans are a different problem!!

Please give me a Tel number and I will call you to discuss and arrange to come and see you.

Best regards

Recovering from week in Turkey and so will call you tomorrow hopefully lunchtime

Good Afternoon ,

Just following up and to thank you for the time and advice on the phone yesterday , I will be making arrangements to come over to see you to discuss the Loans Business further


Once again Thanks

Best regards

I am interested in this opportunity can i have some more information please i am based in scotland

Regards

Sandy

Hi Ali

Have many questions best to phone i think tomorrow if thats ok?

Sandy

H Ali & Gina ,

Well it has been a while and we are now progressing the Loans idea , 

Can you give me some idea as to the best avenue ie doing this as a sole trader / partnership or utilising a Limited Company

Best regards

S 

Good Morning Gina and thanks (Will add this on my return tonight)

The price is not a problem but do we need to get a seperate licence for each person as we expand. Or in the long run would it be better to use a LTD CO or does the company have to pay a licence fee for each new employee.

Appreciate all your advice.

Best regards

S

Thanks Gina ,

You have cleared up a issue that puzzled me as to the people who would act as agents.

The Limited Co was in order to take advantage of possible Tax Breaks. However I note the cost involved

Would appreciate talking to you and Ali again as your advice has been invaluable

Best regards

S

Lending to friends has nothing to do with the cash loans business. Friends are the last people you want to lend to, its a no-win situation. You will never know if they are 'real' friends, they will always be nice to you while you are lending them money, and if they dont pay you back you have probably lost a friend.
If your friend needs money, either give them the money as a gift or dont bother.

Well it looks like you need to change your profiling criteria, reducing risks while maximising profits when acquiring new clients is part of our training prog, so we cant really give that away in the forum. Most of the losses in this business are from new customers so this is crucial to the success or failure of the business. How many customers you can sign up is obviously dependant on how you acquire and profile customers with regard to minimising bad debt. - Ali

The home collected credit market is unlike any other type of loan business. Our training is very specifically tailored to home collected credit, because that is the model that we have operated very successfully over many years.
It is impossible for someone to draw conclusions from having had experience in other types of loan businesses. Feel free to ring Gina if you have any questions, best if you ring her on her mobile 07813 899 942