How To Be a Successful Money Lending Business?

Starting a small money lending business can be a profitable enterprise if you have proper planning to work like a bank.  Money lending busin...

Starting a small money lending business can be a profitable enterprise if you have proper planning to work like a bank. Money lending business can be complicated, learn from the scracth. 
One of the options that the most people raise when they have a private capital is to become private providers, and their objective is to obtain a return for the money they have provided.

How To Be a Successful Money Lending Business?
If you want to know how to be a successful lender, the first thing to do is to perform your operations complying with the established regulation. And to ensure you how to be a right bank you should know that each of the loans must be documented, taxed to the Treasury and accrue a type Of minimum interest (regulated by Law) since it is clear that it can not be lent to 0%.

How to be a lender in the United States?

You can be money lender in the US both individuals and individuals or even companies, but to know how to be one of the best you have to keep in mind that it is not enough to want to lend money, but it is necessary to register for that purpose.

So how I can be the particular lender?

There are several ways to be a money lender, in this case, we will talk about the two ways of being a private lender that are currently used most in the United State and Canada. 

On the one hand, there is a record in which anyone who wants to work professionally to lend their money and profitable savings must register as a provider entity and enforce existing regulation to protect consumers who access this service.

Another option being a good provider of money is to do it through platforms Crowdlending, which is an alternative financing and investment still new in our country but is experiencing a significant increase in recent years and also does not require registration in any record, just requires registration as an investor in crowdlending platform.

How to be a money lender through Crowdlending Platforms?

To become a creditor or investor on Crowdlending platforms you have to follow an easy and straightforward registration process.

We have an assistant who will guide you through all the steps that you must follow to become an investor of the platform.

Enter paragraph Invest your money and follow the steps the wizard tells you to complete the registration. You will have to answer the simple questions that, in compliance with the law, we must ask you.

Provides the necessary documentation: photocopy of ID and photocopy of a bank document to be able to associate with your bank account. A bank receipt can be any document from the bank where you put the full account number and your name. Funds that you withdraw from your MytripleA account will be assigned to that current account.

After completing these steps and you are the lender on the platform, and you can start paying your money yourself choosing which company you want to pay in paragraph Market.  

3 Tips to Succeed in money lending Business

Study all businesses and projects published 
Investigate the applications of the companies in which you can invest before deciding on a particular project. Compare the yields, the minimum amount to spend (which in the case of OLB is only € 50), the term ... and choose the loans or investments that interest you most.

Invest in platforms with risk assessment

It is important that you consider ahead of the platforms that study the risk of each of the operations they are going to publish since that gives you the assurance that the probability of occurrence of default is smaller. In OLB there is a rating risk rating that lets you know the risk of each project. 

Diversify your investment portfolio

Invest small amounts in different projects, because this way you will diversify the risk of possible losses to be able to compensate the losses in case they occur with projects in which if a good profitability has been obtained. In OLB you can diversify in different criteria:

As for the risk: 

You can invest from a rating A + (lower risk and lower profitability) to an F rating (minimum rating that should get companies to put their financing available to investors)

You can also diversify regarding profitability: 

In the hands of risk rating and profitability will, as is known, the greater the risk, lower yielding, higher risk, and higher returns. OLB is the only platform of crowdlending that offers its investors operations insured by RecĂ­rpocas Guarantee Societies, being able to obtain a profitability of up to 4% per year guaranteed. On the other hand, there are also operations with a personal guarantee from the partners of the company that can go up to a profitability of 15% per year. 

As for the term diversification: 

Diversification is also interesting regarding the term. We give you an example. If you invest € 6,000 in a 1-year loan with 8% annual return and another € 6,000 on a 2-year loan with the same profitability, do you know which will give you more profitability at the end of year 1? The one-year investment will make you a return of € 263.18 and the investment for two years € 375.89

If you choose different terms and yields for the projects in which you are going to invest your money also, you will be able to diversify the risk of expected loss reducing it considerably.

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