I have a seed capital of 300k and wanted to start a money lending business for salaried people. In my earlier broke employment years, I used to use these payday shylocks, and now that the student has become the teacher I want to dip my toes in the murky shylock business.
I have the target market already but worried about how to handle defaulters and scalability of the business. Any sound advice?
@Motokubwa anavunja miguu for a small fee
Ongea na @D… Mungai advice yake itasaidia wewe
Utakuliwa ujue haujui
300k is small amount of money.
CBK is not accepting new lending companies, so most probable path is joing hands with someone else. That’s the trick part, finding a genuine person with existing business.
With 1m it’s a good bargaining amount to start with.
I thought shylocks are unregulated and loans are on ‘friendly agreements’.
d
Do it in such a way that the people you loan leave collateral and they give you the documentation.Have them sign legally binding agreement.If they default sell the collateral.The amount you lend is 33% the value of the collateral meaning you can sell at throaway prices and still recover your money.
Kanyagia hii biz Kwanza. Saa hii Corona will render people jobless. Some their salary is slashed by 50%.
Venturing right now is like swimming in a river infested with crocodile, mamba,king’ang’i.
Shylocks meaning what?? Shady lending? Don’t try that.
Best is “Micro finance non deposit” …
You don’t need to go CBK to open the business BUT Registra of business HAS to confirm with CBK if your proposed name is not taken, and give a green light for that name.
Hapa ndio CBK is not giving a YES / NO answer meaning NO NEW BUSINESS is coming up. (this are like mwananchi micro finance… Non deposit Microfinance. Which are the best).
I was to do business with him, but his security had another guys name, then all other assets were charged. Had cold feet.
This is the only “legit” way of doing it now. But you need to know the person. Huyu I have known him since 2014. So we have done some business.
[ATTACH=full]302329[/ATTACH]
I smell something fishy
Kindly desist. Was doing well with shylock biz from 2011 mpaka second half of last year when economy was doing really bad. Sai na waive interest atleast the top big loans zinarudishwa plus nimereduce individual limits . Currently 1/3 ndio wako poa nawafanyia for all those years.
Mcheza raia huku nje… The amount of forged documents out here will leave you in tears.