Setting up a payday loan company

[Jwds8]

Hi guys
I was wondering if anyone out there could help me with some help and advice on setting up a payday loan company

 

[Scalloway]

There is some information here

https://www.bytestart.co.uk/set-up-loans-company.html

The main hurdle will be satisfying the Financial Conduct Authority

https://www.fca.org.uk/firms/consumer-credit

 

[Mr D]

Tons of cash, methods of scoring customers so can weed out the ones that should not be lent to, a fortune on marketing to compete with lots of other companies doing the same thing.
And get money dribbling in, some of which has to be collected through debt collection.

Oh and write off some loans too.

 

[estwig]

Lend us a tenner and I'll give you some feedback, pay you back, promise.

 

[The Byre]

Hi guys
I was wondering if anyone out there could help me with some help and advice on setting up a payday loan company

May I suggest that you set up such a company in Germany - because there, what you want to do is a criminal offense.

 

[Mark T Jones]

In order of priority

1. Develop and instigate a robust collection policy

2. Ensure you are fully compliant with FCA regs

 

[Mr D]

Lend us a tenner and I'll give you some feedback, pay you back, promise.

My brother lent me a tenner once, had to pay him a pound a day interest. He never did ask me for the tenner back, nice of him...

 

[Mr D]

May I suggest that you set up such a company in Germany - because there, what you want to do is a criminal offense.

They still use the old style of payday lending there then? Big beefy guys to beat up women and smack the kids around?

 

[wayzgoose]

My brother lent me a tenner once, had to pay him a pound a day interest. He never did ask me for the tenner back, nice of him...

I wonder if he's still adding up the daily interest

 

[MBE2017]

Tons of cash, methods of scoring customers so can weed out the ones that should not be lent to, a fortune on marketing to compete with lots of other companies doing the same thing.
And get money dribbling in, some of which has to be collected through debt collection.

Oh and write off some loans too.

Expect 60-80% default rates until you know what you are doing. The established companies rely on their collectors knowledge of the applicants, some have decades of experience with several generations of the same families. They also know the various drug users etc to avoid at all costs.

Not something you learn in ten years time even.

 

[Mark T Jones]

Expect 60-80% default rates until you know what you are doing. The established companies rely on their collectors knowledge of the applicants, some have decades of experience with several generations of the same families. They also know the various drug users etc to avoid at all costs.

Not something you learn in ten years time even.

That would apply to doorstep lending since it’s in the e-commerce section I’m guessing this is an online idea

 

[Mr D]

I wonder if he's still adding up the daily interest

Probably. He's the rich one in the family.....

 

[Mr D]

Expect 60-80% default rates until you know what you are doing. The established companies rely on their collectors knowledge of the applicants, some have decades of experience with several generations of the same families. They also know the various drug users etc to avoid at all costs.

Not something you learn in ten years time even.

With payday lending these days you fill in a form on one website, they pass your details to a dozen companies some of whom immediately ring you to get more information / email you a link saying yes you have a provisional loan now provide more information.
May well ring your employer to check you work there - an interesting idea except some employers deny anyone works there in order to avoid problems.....

Having provisional acceptance and provided a ton of details, quite possibly scans of payslips and scans of bank account transactions... you then get turned down by that one. And ring one of the dozen who have emailed or texted you in the meantime...
Odds are someone will pony up some money.

My sister had the fun job of dealing with clients who used the services, could not pay the loans so went looking eventually for help. Some of them paying a grand or more a month in repayments so having to take out another loan...