Risk of running a lending company

[Nomad]

While profitability is very high when you are running a lending company, as a lender you also face the significant risk of loan defaults. Many borrowers perceive loans as free money and may not prioritize repayment. Therefore, when you are running a lending company, you must assess the borrower's credibility, you need to see whether the borrower can pay or not. The purpose of giving the loan is to ensure timely repayment, you need to see if the lender has an income source to pay back. Collateral may be necessary to secure the lending amount

 

[Kirubel]

Back in the days peoples used to disappear after they get a loan from those companies, and they came up with this strategies that in order one person to get a loan they need to deposit some percent of the money they need to get and also they need to give their documents of the property they have like car documents and house documents so that they can not disappear.

 

[Suba]

If you operate a lending company, you should ask for collateral in the form of land certificates, motor vehicle certificates, even if you need physical collateral such as gold, laptops, etc. to avoid the risk of default, because your company is a private company, not a government-owned bank.

 

[King Belieal]

I can't run a lending business without making collateral as part of the requirements to he given a loan. Humans are so terrible that they would take loan and still turn around to claim right for failure to repay on time.

 

[Augusta]

I can't run a lending business without making collateral as part of the requirements to he given a loan. Humans are so terrible that they would take loan and still turn around to claim right for failure to repay on time.

That right, nothing verbal should be associated with lending. You need to get everything documented and get the things that will help you recover your money from defaulters.

 

[eLdavis]

Though this is a good business with high returns, but the risk is just too much and to be honest I can't really go through the stress of dragging people to come and pay back their loans.

 

[King Belieal]

Though this is a good business with high returns, but the risk is just too much and to be honest I can't really go through the stress of dragging people to come and pay back their loans.

That stress is seriously something else. Some loan defaulters would be using you to practice Marathon racing for the Olympics. It is physically and emotionally draining.

 

[Augusta]

That stress is seriously something else. Some loan defaulters would be using you to practice Marathon racing for the Olympics. It is physically and emotionally draining.

Yeah , this is one business thst the future risk is very glaring because it involves lending money to humans and humans default a lot when it comes to repayment

 

[eLdavis]

That stress is seriously something else. Some loan defaulters would be using you to practice Marathon racing for the Olympics. It is physically and emotionally draining.

Haha, most times I usually get messages like do you know so and so person from your contact? If you know their whereabouts kindly contact us, they took loan and have refused to pay back. I can't go though does kind of stress honestly.