nick0
Associate
Posts: 1
Thank You
-Given: 0
-Receive: 0
|
 |
« on: February 22, 2009, 12:41:56 PM » |
|
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
|
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #1 on: February 22, 2009, 06:41:14 PM » |
|
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
Hi Nick, If I was starting from scratch again I would set aside an amount I needed to live on and build the business up over a year by reinvesting all the collections. The business can be started with as little as £3000 if you have funds to live on as well, and you would expect to be making around £300-400 a week profit by the end of the first year if you plough all the collections back. If you start with more than 3k you would expect to be making proportionately more pro rata. Hope this helps - Gina |
|
|
|
|
Logged
|
***
|
|
|
TerryThomas
Project Member
Posts: 29
Thank You
-Given: 3
-Receive: 1
|
|
« Reply #2 on: March 18, 2009, 09:50:04 PM » |
|
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.
|
|
|
|
|
Logged
|
A person who never made a mistake, never made anything!
Fat bottom girls they make this rockin' world go round!
|
|
|
Hedgebetter
B.I.A.O Regular
Posts: 47
Thank You
-Given: 0
-Receive: 0
From next to nuthin to almost sumthin
|
|
« Reply #3 on: May 02, 2009, 10:51:05 PM » |
|
is finding customers a problem? Or is recovering the debts a problem?
|
|
|
|
|
Logged
|
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #4 on: May 04, 2009, 10:19:27 PM » |
|
is finding customers a problem? Or is recovering the debts a problem?
We have no problem acquiring customers, the trick is in finding customers who will pay regularly.
We have a great customer acquisition program that makes money from new customers even before we have issued them with a loan.
We also have a very simple but effective profiling system that eliminates a lot of potential bad debt at the outset.  |
|
|
|
|
Logged
|
***
|
|
|
1clickprint
B.I.A.O. Member
Posts: 5
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #5 on: May 08, 2009, 04:35:56 PM » |
|
so you don't credit score your customers then?
does this mean you charge high APR's and treat them as high risk?
I like the idea of offering loans although when i have looked into this in the past it seems i have to charge people who really cant afford a loan ridiculously high interest to make a profit.for example i dont want to lend someone £50.00 and collect £100.00 off them over 13 weeks such as the provident / greenwoods business models which i have looked at in-depth.
|
|
|
|
|
Logged
|
1clickprint - Flyers,Posters,Canvas Prints,T-Shirts
01909 561900
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #6 on: May 09, 2009, 09:38:28 AM » |
|
so you don't credit score your customers then?
does this mean you charge high APR's and treat them as high risk?
I like the idea of offering loans although when i have looked into this in the past it seems i have to charge people who really cant afford a loan ridiculously high interest to make a profit.for example i dont want to lend someone £50.00 and collect £100.00 off them over 13 weeks such as the provident / greenwoods business models which i have looked at in-depth.
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. |
|
|
|
|
Logged
|
***
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #7 on: May 23, 2009, 01:19:01 AM » |
|
To add to the above: If you only make £300 per customer per year, then 300 customers would make £90,000 profit. One good collector can collect on 300 customers easily! |
|
|
|
|
Logged
|
***
|
|
|
Jules
B.I.A.O. Member
Posts: 7
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #8 on: May 26, 2009, 11:57:34 AM » |
|
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
|
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #9 on: May 26, 2009, 01:09:17 PM » |
|
Hiya Jules, 300 would be about right. Collecting on 15 customers an hour is the average. If you were to really knock yourself out and work Saturdays, you could collect 400, but that would really be quite hard work  - Gina |
|
|
|
|
Logged
|
***
|
|
|
TerryThomas
Project Member
Posts: 29
Thank You
-Given: 3
-Receive: 1
|
|
« Reply #10 on: May 27, 2009, 01:36:31 AM » |
|
Have just applied for my credit licence, seems like its gonna take quite a while  |
|
|
|
|
Logged
|
A person who never made a mistake, never made anything!
Fat bottom girls they make this rockin' world go round!
|
|
|
Jules
B.I.A.O. Member
Posts: 7
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #11 on: May 27, 2009, 12:36:17 PM » |
|
Thanks Gina.
Out of interest do you know how much commission collectors earn on average. I'm sure it depends on company etc but in your experience do you have any figures. I'm thinking ahead (well ahead) but working on numbers etc.
Julie
|
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #12 on: May 27, 2009, 01:45:35 PM » |
|
Thanks Gina.
Out of interest do you know how much commission collectors earn on average. I'm sure it depends on company etc but in your experience do you have any figures. I'm thinking ahead (well ahead) but working on numbers etc.
Julie
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. |
|
|
|
|
Logged
|
***
|
|
|
Jules
B.I.A.O. Member
Posts: 7
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #13 on: June 02, 2009, 12:05:29 PM » |
|
Is anyone aware of the average wait time to get a CCL nowadays. OFT are saying around 3 months, but Im sure I read somewhere the other day (cant' remember where) that it's taking much longer now. My application has been in for almost 3 months now and they won't answer any emails I send. Is it worth continuing to chase and hope for a reply, or phoning them etc or just to wait....  |
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #14 on: June 02, 2009, 12:15:46 PM » |
|
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?
|
|
|
|
|
Logged
|
***
|
|
|
Jules
B.I.A.O. Member
Posts: 7
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #15 on: June 02, 2009, 12:20:41 PM » |
|
Thanks Gina. Yes they received my application and I got confirmation and reference number etc. About 1.5 months after they received teh application they asked for a little more information which I also sent back. Guess I'll have to continue waiting!
|
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #16 on: June 02, 2009, 12:24:50 PM » |
|
We have a few clients in the same boat Julie. I hope your wait will soon be over - Gina |
|
|
|
|
Logged
|
***
|
|
|
PhillipTapper
B.I.A.O. Member
Posts: 4
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #17 on: June 13, 2009, 07:59:44 AM » |
|
Hi all
I HAVE A FEW QUESTIONS THAT NEED ANSWERING
1. CAN I START A PART TIME LOAN BUSINESS A ON A TRIAL USING MY OWN MONEY THAT I HAVE SAVED,AND LEND OUT SMALL AMOUNT OF LOAN TO CUSTOMERS AND BUILD UP A CASH FLOW THERE.
2. DO YOU NEED TO PAY FOR A CREDIT LICENSE IF SO HOW MUCH
3. DO YOU NEED TO REGISTER YOUR LOAN BUSINESS AND NOTIFY INLAND REVENUE ABOUT THE BUSINESS
ON HOW MUCH YOU MAKE AND EARN.
PLEASE LET KNOW WHAT YOUR ANSWER IS TO THOSE 3 QUESTIONS
Phillip Tapper
|
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #18 on: June 13, 2009, 11:51:50 AM » |
|
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.
|
|
|
|
|
Logged
|
***
|
|
|
PhillipTapper
B.I.A.O. Member
Posts: 4
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #19 on: June 13, 2009, 12:10:44 PM » |
|
Hi Gina thank you for you answers to my Questions i will certainly do that have a nice weekend  Phillip |
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #20 on: October 26, 2009, 06:51:02 PM » |
|
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
Did you get your credit licence yet Julie? |
|
|
|
|
Logged
|
***
|
|
|
Jules
B.I.A.O. Member
Posts: 7
Thank You
-Given: 0
-Receive: 0
|
|
« Reply #21 on: November 01, 2009, 12:30:29 PM » |
|
Hello Gina
We actually received it just a week ago, so am very busy right now trying to organise things to be able to begin. I didn't do too much beforehand in case we didn't get the licence so now it's all go.
Best wishes
Julie
|
|
|
|
|
Logged
|
Dont forget! Its FREE to make yourself a signature on B.I.A.O! - Please post an Introduction if you have not done so already!!!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #22 on: November 01, 2009, 08:19:45 PM » |
|
Great Julie, I am glad it was successful |
|
|
|
|
Logged
|
***
|
|
|
TerryThomas
Project Member
Posts: 29
Thank You
-Given: 3
-Receive: 1
|
|
« Reply #23 on: January 31, 2010, 12:08:20 PM » |
|
Hello Gina
We actually received it just a week ago, so am very busy right now trying to organise things to be able to begin. I didn't do too much beforehand in case we didn't get the licence so now it's all go.
Best wishes
Julie
Just wondered, how is your business going now tht you have your licence? |
|
|
|
|
Logged
|
A person who never made a mistake, never made anything!
Fat bottom girls they make this rockin' world go round!
|
|
|
Gina
Site Owner & Global Moderator
Posts: 457
Thank You
-Given: 50
-Receive: 11
|
|
« Reply #24 on: January 31, 2010, 04:01:54 PM » |
|
I would like to hear how she is doing too |
|
|
|
|
Logged
|
***
|
|
|
|
