Money lending institutions, like banks, are great when you want to apply for standard cash loans. But oftentimes, banks cannot accommodate the needs of the possible borrower when it comes to lending smaller amounts and shorter time frame of repayment say less than a year or even six months. Because of this, alternative lending solutions exist in the list of licensed money lenders in singapore which caters smaller amounts of money borrowing be it in a form of private lending entity or hard money lending company.
Money lending does not only work for people who ran out of cash, this can also be a profitable kind of business. Opening a private lending company might be good for you if you want to venture a money lending business and structuring loans that make use of your own funds as the source of money or capital. Like any other kinds of business, money lending entails a great deal of risk on the part of the business owner. The reason why precautionary measures should be properly and strictly implemented. Situations on how to ensure payments are made on time, how to handle late payments, borrowers who default on loans or are delinquents and the collection process itself if the owner wants to employ agents in collecting repayments.
On the other hand, there is also another way in starting up a money lending business without utilizing fully your own fund. This is what you called hard money lenders or those who work with brokers and other sources of money broker businesses in order to structure loans for their prospective clients or borrowers. Unlike private lending, hard money lending reduces the risk and out-of-pocket spending, plus clientele will come your way through capital investors, accountants and bank referrals for customers who do not quite fit within the structure of a conventional lending institution.
If you are planning to venture out either being a private licensed money lender or hard money lender,check proper documentation down to the slightest detail is very important. This makes sure you don’t miss out any important point to avoid confusion that will affect your business and your borrowing partner as well.
No business is without risk. You just need to make sure that procedures are followed to avoid running out of business.