A money lending business is lending a small amount of money to someone who is unable to obtain a loan from a traditional bank. It has a lot of benefits because the customer needs only basic paper work and an employment proof. There is a micro finance business that gives cash loans in Kamloops, a beautiful place tucked between the mountains in Canada.
A financial emergency could emerge anywhere! Maybe someone has a lot of debt in Guatemala or someone else requires a quick cash loans in Kamloops. It is places like these where people have little access to conventional banks. Other situations like in case of a travel emergency, for paying dental bills or for a special occasion in the family… cash should always be made available to the ones in need. It is a very simple process where customers don’t even require showing their credit history. The application procedure is simple and anybody can take a small amount of loan from a micro finance company. If you are planning to start one, we have 6 tips for you:
1. Stick to the local market
A successful micro finance company operates at a local level. Most of your loans should be within 50-100 miles of distance. A micro finance company should give most of the loans to its local communities. You will be considered an expert in the local area and a people will trust you more if they know you are local.
2. Find your range
Start small and then go big! Be honest with your regular customers who recommend your services to others. Start with a small loan of 1000-5000 $ and then increase the amount. Besides, smaller amount means larger interest and more profit. Make a wise decision while deciding your range.
Stay true to your marketing and advertising ideas. Only advertise the type of loan that you provide and the areas you operate. False promotions like ‘we are available all throughout the country’ or “we give various types of loans’ are going to harm your reputation.
4. Be transparent
Post real pictures of success stories and of real people on your website. Add testimonials that are real and not a fake story of someone becoming a millionaire with your cash loan. When people see your real stories, they will be intrigued to use your service and will also make your image more credible.
5. Refer more and use less of broker
Don’t be a middleman by hiring brokers to get you deals. A good referral system in place is enough to put your word out there. Brokers usually get their fees by over charging their customers and thus making it hard for over business to run. An over charged customer will never refer you to their friend and you might go into a loss.
6. Continue with your research
A good micro finance business will run better when you invest in yourself. Read more books, get help from an expert and attend lots of seminars and conferences. Sometimes talking to a competitor will help you gain insights.