I noticed your add on Ebay as I have been doing some research into the Loan buisiness and with my relocation back to Chester(not to far from you) in the next few months I m looking for a new start.I have held a Consumer Credit Licence (10 years ago) when I offered finance running another business.

I am looking at running my buisiness full time (and improving my golf techniques)so what sort of investment would you class as reasonable and my only concern with running this sort of business is the Gone Away clients but you say this works out at under 8% of turnover.

Cheers

Nick

I am seriously considering starting this in the near future, but I want to make sure I have the funds available to live on for a year. To do this I will have to trim my lifestyle somewhat, but hey, nothing ventured - nothing gained. I am aiming at around 10k to start the business with, and another 15 - 20k to live on.

No we dont credit score, there is no point because most of our customers have bad credit.
Your figures are incorrect for greenwoods and provident, they use mostly a 31 week 365.1% apr which is actually 55% in real terms. Our model is different, we charge 30% on most of our loans over 13 weeks. The most we will make on our customers is a couple of hundred pounds a year. It is volume of customers that makes this work. For these regular customers our loans are a lifeline if their washing machine or car breaks down etc, these people need some sort of credit and the banks or other agencies won't look at them.

Hi Gina

Just joined your forum. I'm hoping to start a home credit business as soon as I receive the licence. Been waiting now for almost 3 months.

You said that one good collector can collect on 300 customers "easily". How many customers do you think one good and well organised collector can manage by herself.

Thanks Julie

Have just applied for my credit licence, seems like its gonna take quite a while

Hiya Julie its around 8 to 10% of collections.
The way we do it is to calculate commission in two parts: One part is a percentage of collections and the other part is deductions for missed calls where the customer didnt pay that particular week.
It's a gross over-simplification of the process, but that is the gist of it.
A collector with 200 customers could expect to earn £150 - £240 pwk for about three days work.

It might be worth giving them a ring, but to be honest it takes as long as it takes.
You should be getting it very soon if you have waited that long.
I think its just a case of being patient. Did you ever get a confirmation that they have received your application?

We have a few clients in the same boat Julie. I hope your wait will soon be over - Gina

Hiya Phil, to answer your questions in the order they are asked:
1. Yes you can start with as little or as much as you choose.
2. When applying for a licence:
sole trader - £480 (includes consumer credit licensing fee of £330 and CCJ levy of £150)
partnership, company or other organisation - £970 (includes consumer credit licensing fee of £820 and CCJ levy of £150).
3. Yes, as with any new business you have to inform HMRC. I think you have to do it within 3 months, but please check with them.

Did you get your credit licence yet Julie?

Great Julie, I am glad it was successful

I would like to hear how she is doing too