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Allan

Allan Dunn
Posts: 1
24/02/2008 23:42:54
Would anybody out there know, if it is possible to become a lender, if you have a certain amount of cash in the Bank ?
For example, if you had say £2M in the bank, and you used that as security to borrow say a further £2M at 5.5%. Can you start a company lending out secured loans at say 7.5% and operate legally ?
I would appreciate any advice, although, I don't know for sure if this is in the remit of the Forum.
Rgds
Allan

5 Replies
David Rhodes
Posts: 340
25/02/2008 09:14:55
You would need to be licenced at the office of fair trading, they would decide whether to allow you to lend money. If you had business skills of course you could become a business angel and invest in other peoples businesses for your return. http://www.bbaa.org.uk/

Horizon Business Agents www.horizonbusinessagents.co.uk
Lee Plaister
Posts: 2
31/03/2008 13:50:40
Hi Allan,

If someone had this kind of money there are ventures which would yield far higher returns with far less risk than entering the secured (2nd charge) market; especially in the current climate.

Give me a buzz if you want to discuss some ideas that would return approx 25% ROI; Lee (07912 116070)
Mike Abbott
Posts: 1
11/04/2008 23:11:45
It is quite possible to become a lender, as has been said you do need to be licensed.

The current climate will give rise to opportunities as traditional sources become reluctant to lend. However, the fact is that it is not normally equity which which repays the loan ~ it is responsible borrowers ~ with equity as a safety net.

You will need to know how to get applications, how to verify the information provided, how to take security and valuations, and then how to judge which applicants are a good risk.

Then you need to be able to administer the loan, collect payments, maintain the records and deal with all the things which can happen over the life of the loan ~ including payment problems, redemptions, relationship breakdown, plus routine ueries, redemptions and release of security etc.

The return available will depend on the rate you charge, the rate at which you borrow, and the gearing ~ the ratio of the amount invested to the amount you are able to borrow from banks, less overhead.

As with every endeavour there are risks, and one as a new lender is that people who have been turned down everywhere else will try to apply to a new lender.

There will still be niches where money can be made, and once you build up a good book it can provide income almost in perpetuity, and a readily saleable asset.

If you would like to discuss this further reply to

bfspost @ telcoaudit.co.uk

remove the spaces which are included to confuse the robots...

Good luck

Mike



Eamon Kerlin
Posts: 3
24/12/2008 23:41:36
Have you looked at Zopa
Steve Pollard
Posts: 1
06/07/2009 13:28:48
Hi Allan

I realise its an old post but I'm new to this forum.

If you're still interested in the secured loan market, I have some private lenders that may are fully licensed and established and may be interested in a joint venture.

Email me at info @ more4loans. com (minus the spaces).

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