Business Idea

Start A Money Lending Company

About

Starting a money lending company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell money lending, or selling money lending online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a money lending company ➜

Key stats

market size
$6.75T
revenue (monthly)
$20.1M
starting costs
$28.1K
gross margin
47%
avg product price
$105000
time to build
12 months
growth
Word of mouth
business model
Brick & Mortar
time investment
Full time

About

Starting a money lending company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell money lending, or selling money lending online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a money lending company ➜

Key stats

market size
$6.75T
revenue (monthly)
$20.1M
starting costs
$28.1K
gross margin
47%
avg product price
$105000

 

time to build
12 months
growth
Word of mouth
business model
Brick & Mortar
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Advertising & Marketing Costs $75 $5,536
Software Expenses $162 $3,044
Other Expenses $0 $500
Total Startup Costs $7,541 $49,047

Successful Businesses

Business URL Rank
Affirm affirm.com #8,641
LendingTree lendingtree.com #8,658
LendingClub lendingclub.com #12,497
Compound compound.finance #23,771
Personal Loans prosper.com #25,409
Kabbage kabbage.com #29,364
OneMain Financial onemainfinancial.com #30,924
CIT cit.com #31,394
Caliber Home Loans caliberhomeloans.com #39,146
Bank of Hope bankofhope.com #48,803
Loans from $50 speedycash.com #89,209

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a money lending company. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Money Lending Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a money lending company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A money lending company can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
High employee turnover In the money lending company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a money lending company, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a money lending company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
Time commitment With starting a money lending company, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Partnerships

    A partnership is a formal agreement between two or more entities to oversee business operations and share profits and liabilities.

    Creating strategic partnerships with an existing business can be a huge win for a startup.

    This is considering that a partnership creates a new slate of future options for your startup.

    On the other side, pursuit of partnerships could suck up a ton of time, and bunch of resources, and fail to materialize.

    Therefore, entrepreneurs need to do proper research and evaluate the possibilities of achieving success through partnerships.