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How to Start a Money Lending Business

Last Updated: April 15, 2024 Fact Checked

This article was co-authored by Clinton M. Sandvick, JD, PhD . Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. There are 11 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 330,041 times.

If you want to start a money lending business, you will need to decide what kinds of loans you want to make—payday, mortgage, or installment loans. You may choose to start a lending business using only your own money or money from a group of investors. Starting a money lending business will require that you develop a business plan and gain the necessary government licenses.

Preparing to Start the Business

• You should search your state’s business filing office to find out if a name has already been taken.

• Executive summary. You will need to briefly describe the nature of your business and why you think it will be successful. The executive summary should contain your mission statement as well as company information. As a startup, you should focus on explaining how your experience and background will contribute to the business’s success.
• Company description. Explain the nature of the business, your intended market, and the market needs your lending business will satisfy. For example, you might want to meet the small loan needs of your community, which are underserved.
• Also identify your competitors and describe their strength or weakness in the market.
• Product line. Describe the loans you want to make. You should explain the advantages of your loans over those of competitor’s.
• Marketing and sales. Discuss your overall sales strategy, including your plans for growth. For example, you may hope to grow geographically, offering your loans to a larger community. Or you might hope to grow by offering additional types of loans to your current market.
• Financial projections. Based on your market analysis, you should forecast your projected finances for five-years out.

• Some money lenders have dipped into their retirement accounts, such as their IRAs and 401(k) accounts, to fund their loans. Experts encourage money lenders who do this to understand the risks that they are taking. For example, loans might not be repaid, in which case you could lose a large percentage of the loan amount. [3] X Research source
• If you seek funding from investors, then you will need to work closely with a lawyer to draft a prospectus to share with investors. State and federal laws tightly regulate how you advertise securities to potential investors. Your lawyer will need to be experienced in securities regulation.

• Generally, you will assess risk by gathering information about the loan applicant’s financial history. For example, you would want to look at their income, FICO score, and other debt load. [4] X Research source

• To find an experienced business lawyer, you can visit your state’s bar association website, which should run a referral program.
• You can research any attorney by visiting his or her website. Look for experience with business formation, as well as banking or lending experience. If you are starting a lending business for real estate, then look for an attorney who has real estate experience as well.

• You can purchase your domain name from various registrars. Search the internet for “where to purchase domain name” and look at the different companies that provide this service.

Registering Your Business

• To incorporate, you will have to file articles of incorporation with your state. Your attorney should be able to get them, or you can get them yourself from your Secretary of State.

• In addition to state licenses, you may need municipal or local licenses. You must contact your state business licenses office and search for applicable licenses or permits. The Small Business Administration has links to each state’s office at https://www.sba.gov/content/what-state-licenses-and-permits-does-your-business-need .

• Not every state requires that you register a “doing business as” name. You can check registration requirements with your Secretary of State office as well as with your county clerk’s office.

• You should check with your attorney whether or not you need to register the securities and which agency you need to register with.

• You can apply for an EIN online. This is the preferred method. [6] X Trustworthy Source Internal Revenue Service U.S. government agency in charge of managing the Federal Tax Code Go to source To start the application, visit the EIN Assistant at https://sa.www4.irs.gov/modiein/individual/index.jsp .
• You can also apply by mail or fax by printing off Form SS-4 available at http://www.irs.gov/pub/irs-pdf/fss4.pdf . To find out where to mail or fax your form, you should visit the IRS website at https://www.irs.gov/filing/where-to-file-your-taxes-for-form-ss-4 .

• Under federal law, specifically the Fair Debt Collection Practices Act, you are prohibited from harassing or abusing the customer that owes you money. [7] X Trustworthy Source Federal Trade Commission Independent U.S. government agency focused on consumer protection Go to source Also, you cannot use false, deceptive, or misleading means to collect any debt. [8] X Trustworthy Source Federal Trade Commission Independent U.S. government agency focused on consumer protection Go to source If you fail to obey federal law, you and your business could face stiff civil penalties. [9] X Trustworthy Source Federal Trade Commission Independent U.S. government agency focused on consumer protection Go to source
• Each state will also have laws prohibiting certain debt collection activities. For example, in Iowa, you are prohibited from making illegal threats or from coercing or attempting to coerce a customer into paying a debt. [10] X Research source

• To find a compliance professional, you can ask your lawyer for recommendations. Alternately, if you met anyone at a national conference or panel, you could contact them for a recommendation.

Launching Your Business

• Rent is often one of the largest expenses for a new business. Accordingly, you should budget and not spend more than you can afford.
• Try to negotiate a one- to two-year lease with an option to renew. Because you don’t know if your business will be successful or not, you shouldn’t sign an initial lease for longer than that.
• Find out what other expenses you might incur in addition to the rent. For example, you could have to pay for maintenance and repair, upkeep, and utilities.
• Negotiate some add-on clauses, such as a right to sublease or an exclusivity clause (which prevents a landlord from leasing to a direct competitor at the same location).

• Business tax identification number (or Social Security Number if sole proprietor)
• Business license
• Business name filing document
• Articles of incorporation with corporate officers listed (for a corporation)

• If you are lending money for real estate, you will need not only the promissory note but also the mortgage note. Lenders working in the real estate field also typically use other documents, such as Letters of Intent (LOI) and preliminary title reports. [13] X Research source You should ask your attorney or compliance professional about what other contracts are necessary.
• For more information on loan agreements, see Write a Loan Agreement.

• If you want to make a few loans to acquaintances or people in your neighborhood, you could rely on word of mouth. However, if you want to reach a larger market or grow more quickly, then you should consider advertising in newspapers or online.
• You should also consider advertising in the form of imprinting your company name on pens, paper, calendars, and other giveaway items.

Expert Q&A

• Some experts recommend that you lend locally, preferably within 100 miles of your physical location. [14] X Research source Thanks Helpful 0 Not Helpful 0
• Running a collateral-free loan is an added advantage to run a successful lending business. Thanks Helpful 25 Not Helpful 6
• You should not underestimate the amount of work it will take to start a money lending business. If you find it difficult to write a business plan, you might want to rethink your objectives. Thanks Helpful 14 Not Helpful 5

You Might Also Like

• ↑ https://www.profitableventure.com/starting-a-micro-money-lending-business/
• ↑ https://www.sba.gov/writing-business-plan
• ↑ https://www.investopedia.com/terms/l/loan.asp
• ↑ http://www.creditinfocenter.com/mortgage/guidelines.shtml
• ↑ https://www.sba.gov/business-guide/launch-your-business/register-your-business
• ↑ https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• ↑ https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text
• ↑ http://www.nolo.com/legal-encyclopedia/iowa-fair-debt-collection-laws.html
• ↑ https://www.pacificprivatemoney.com/6-tips-for-a-successful-private-lending-practice/
• ↑ https://www.sba.gov/business-guide/manage-your-business/buy-assets-equipment
• ↑ http://www.fortunebuilders.com/becoming-private-money-lender-part-2-breaking-private-money-loan/

About This Article

To start a money lending business, you’ll need to draft a business plan and obtain the necessary licenses by completing the paperwork required by your state. Your business plan will need to include the types of loans you want to make, such as payday or mortgage, and strategies for how to grow your business. That way, you can attract potential investors, which is typically less risky than using your own savings. You should, however, work with an attorney experienced in securities to ensure you acquire your investments legally. Your lawyer can also help you apply for the needed licenses and register your business as a corporation, sole proprietorship, or whichever type of company you choose to be. For more advice from our Legal co-author, like how to advertise your new business, keep reading! Did this summary help you? Yes No

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How to Start a Microlending Company

Microlending is the practice of lending smaller sums of money, typically to those who are unable to obtain funding through an established federal institution. Microlenders typically don’t request any type of collateral before loaning out the money. For-profit institutions may charge a high rate of interest to mitigate financial risks should the borrower default on their loans.

Microlending has had a lot of traction overseas in developing nations, and most are non-profit ventures. Money is lent to people who need it to start a small business in their area. Would-be entrepreneurs can get the cash they need to fill a vital need in the community, and lenders can contribute in their own way to helping individuals find their niche and lead more productive lives.

Learn how to start your own Microlending Company and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a microlending company by following these 10 steps:

• Plan your Microlending Company
• Form your Microlending Company into a Legal Entity
• Register your Microlending Company for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Microlending Company
• Get the Necessary Permits & Licenses for your Microlending Company
• Get Microlending Company Insurance
• Define your Microlending Company Brand
• Create your Microlending Company Website
• Set up your Business Phone System

We have put together this simple guide to starting your microlending company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Microlending Company Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your microlending company?

Business name generator, what are the costs involved in opening a microlending company.

Microlenders typically don’t have a lot of overhead, though you’ll likely need to hire a loan processor, a collector, and a bookkeeper. If you plan to take on all of these roles on your own at the beginning, you'll need to be extra careful. Even one mistake on your part can land you in legal hot water.

What are the ongoing expenses for a microlending company?

Overhead for a microlender is low, as you generally don’t need an office to conduct business:

• Employee salaries
• Advertising costs
• General office supplies
• Website costs

Who is the target market?

If you're hoping to make a social contribution as much as an economic one, an ideal person to lend a small sum of money to may be a woman in a third-world country, for example. She may be smart and capable of running a small family farm, but she lacks the resources to get started. A small sum of money may buy her enough for a few animals, which she can then raise to provide for her family. She may use the milk from goats or eggs from chickens to both nourish her family and sell to others in her community.

If you're hoping to make money on your loan, you may want to consider lending to young go-getters who lack the credit history they need to get a conventional loan. There are a number of reasons why people may need a small amount of money, so do your research first before you decide which areas need your assistance the most.

How does a microlending company make money?

Microlenders make money by charging people interest on their loans. You may lend out $500 at a 20% interest rate, meaning the debtor will owe $600 by the time all is said and done.

Interest rates vary widely from place to place. Some may charge 10% while others charge up to 80%. The average is about 35%, but you’ll want to do research on the interest rates in any given area. Some well-known non-profit microlending websites don't even offer the option of interest, while others may go as low as 3%. In these cases, it's more like charity than a business venture though. Those who charge extremely high interest rates are usually for-profit businesses.

How much profit can a microlending company make?

With persistence and patience, a microlender can make a considerable amount of money when in the right area. Some studies state that up to 97% of low-income borrowers pay back their loan under the agreed-upon terms. If you make $100 on average on each loan, you’ll need to make 600 loans in a year to make $60,000.

How can you make your business more profitable?

You may wish to expand to other parts of the world to make your business more profitable. Or you could consider opening up a payday loan store in your neighborhood if you feel you have a good handle on microlending and want to serve others who may need financial assistance.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your microlending company is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a microlending business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws, and government regulations have been met.

• If you plan to lease a microlending office location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a microlending business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a microlending office location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your microlending business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Microlending Company needs and how much it will cost you by reading our guide Business Insurance for Microlending Company.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a microlending company

The best way to promote and market your business is to understand the need you’re filling in any given area. For example, if you’re only targeting small family farmers, then you need to determine how they learn about financial opportunities in their area. This may include physical advertising, such as flyers, or online advertising on specific websites. Depending on your goals, it may even include going door to door.

You should also have your own website that describes what you do, and how you do it. Consider having your information in several languages for the best results, and hiring an interpreter for better communication.

How to keep customers coming back

The best way to generate customers is to be as fair a lender as possible. This doesn’t mean letting people get away with constantly missing payments, but it does mean trying to work with your clients whenever possible. Always do what you say you're going to do, and ensure excellent customer service and professional behavior at all times.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is excellent for those who understand the power of responsible lending. This isn't charity, but it is giving someone else a helping hand when they need it the most. The successful microlender will need an excellent balance between helping others and remaining financially solvent.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a microlending company?

Microlenders must do a number of things to prepare to lend money:

• Research target client/demographic
• Screen clients
• Create reasonable billing plans for pay back
• Comply with all state/federal laws for financial lending
• Study lending practices in different areas.

What are some skills and experiences that will help you build a successful microlending company?

Having some type of formal education in how finances work around the world will help, as will an in-depth knowledge of current law for both the country you operate out of and the country of those you’ll be lending to.

What is the growth potential for a microlending company?

Microlending has done well in Latin American countries and third-world nations because there are a limited amount of ways to obtain conventional funding. If you wish to open a for-profit business, you may want to concentrate on these areas as opposed to lending within the US.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a microlending company?

The best thing you can do is learn how to screen your clients, and to create detailed contracts about each loan. You will get a lot of applications from hard-working, responsible people who will do everything possible to use the funds wisely and pay you back. However, you will get a certain amount of people who are out to take your money, or who are asking for the money to achieve an unattainable goal. Consider video chat or in-person meetings as a way of getting to know your clients. Ask them about their business plan, and look to see how much effort went into their model.

You also need to keep meticulous records to ensure you’re never in danger of violating the laws. Start with sketching out a business plan that details how each transaction will work, and how everything will be recorded. Owners also need to have enough capital to start the business. Even with a limited amount of clients at the beginning, all of your loans will add up quickly.

How and when to build a team

Those familiar with the microlending business say to hire people right away because the risks of making a mistake can be high. However, if you’re starting small with just a few clients or you don’t have very much capital, you may be able to get everything started without external help.

Useful Links

Industry opportunities.

• A Brief History of Microlending

Real World Examples

• American Microloan
• Microfinance

Have a Question? Leave a Comment!

How To Start A Loan Shark Business

• The Dizaldo Blog!

Disclaimer: Starting a loan shark business is illegal and unethical. The following article is for informational purposes only and does not condone or encourage illegal activities.

Introduction

Step 1: research the local laws, step 2: define the target market, step 3: create a business plan, step 4: secure funding, step 6: determine the interest rate, step 7: set up a debt collection system.

A loan shark business involves lending money at a very high-interest rate and often using coercive methods to collect payments from borrowers. While it may seem like a lucrative business, it is illegal in most countries and can result in severe consequences. It is important to note that running such a business is not the right way to earn money.

Before starting any business, it is essential to understand the legal requirements related to it. In the case of loan shark business, it is important to determine the interest rate limits, registration or licensing requirements, and rules for debt collection. Consult with a lawyer to understand the local laws and regulations related to lending money.

Identify the target market to determine the potential demand for the loan shark business. The target market for this type of business usually includes people who have bad credit or are unable to secure loans from banks or other legitimate sources. Define the age, income level, and location of the target market to plan the marketing strategy accordingly.

Create a solid business plan that outlines the goals, objectives, and strategies for the loan shark business. Include details about the target market, available funding, operating costs, and projected revenue. Consult with a financial analyst to create a realistic and feasible business plan.

It is necessary to secure funding to start a loan shark business. This type of business requires a significant amount of capital to lend money to borrowers. Consider obtaining a business loan or partnering with an investor to secure funding.

Step 5: Develop a Marketing Strategy

Create a marketing strategy that focuses on reaching out to potential borrowers. Consider using online and offline platforms such as social media, flyers, and ads in local newspapers. Use attention-grabbing headlines and promotions to attract potential borrowers.

• Get Instant Cash! No Credit Check Required!
• Borrow now and pay later - with a low-interest rate!

Determine the interest rate to charge borrowers. Remember that the interest rate charged should be within the legal limit. Research the average interest rates offered by other lenders in the area and adjust accordingly. Be sure to inform the borrower of the interest rate and other fees associated with borrowing money.

Loan shark business involves loaning money to high-risk borrowers who are unlikely to repay the loan on time. Therefore it is crucial to have an efficient debt collection system in place. Establish a clear policy and procedure for collecting late payments and consider hiring an experienced debt collector.

Starting a loan shark business is not only illegal but also unethical. It can cause harm to individuals and communities. Instead of exploiting people in need, consider offering lending services at a fair and reasonable interest rate. Remember, there are legitimate ways to earn money that do not involve dishonest or illegal practices.

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FTC official: Legal 'loan sharks' may be exploiting coronavirus to squeeze small businesses

Jason Indelicato, who owns a three-store clothing chain in Massachusetts called North River Outfitter, is under siege. As with many small business owners, he has closed his stores because of the coronavirus pandemic, and his revenues have disappeared.

Still, the virus isn't the worst of Indelicato's woes, he told NBC News. A lender is.

On March 19, as COVID-19 spread across the U.S., triggering a national emergency, a merchant cash advance company sued Indelicato and his wife, Alice. The company, PowerUp Lending Group of Great Neck, New York, had given North River money to be repaid from the stores' future sales. Now those sales are nonexistent — but PowerUp's suit demanded immediate payment of almost $91,000, plus legal fees. (The suit is now on hold.)

"I don't see how companies that are collecting future receipts can be litigating against companies that don't have any receipts," Indelicato said.

Merchants like Indelicato have been hammered by the coronavirus outbreak. But aggressive lenders are still trying to extract money from their empty coffers. Court documents show that amid the pandemic, so-called merchant cash advance companies are pursuing legal claims against owners that freeze their bank accounts and are pressing their family members, neighbors, insurers, distributors — even their customers — for money the lenders say they're owed.

Small businesses are the backbone of the U.S. economy, employing millions of people and paying taxes. But since the 2008 recession, they have struggled to get loans from commercial banks, which prefer to deal with bigger borrowers. Small businesses that need cash must increasingly rely on merchant cash advance lenders — members of a little-known industry with almost no government oversight; effective interest rates that can hit 400 percent, according to congressional testimony; and direct access to their customers' bank accounts. Some companies' aggressive, even menacing, collection techniques are documented in video, recordings and emails provided to NBC News.

"The coronavirus crisis is putting millions of small businesses in a precarious situation, and I'm really worried that loan sharks are exploiting the situation," said Rohit Chopra, one of the five commissioners who run the Federal Trade Commission. "We're already seeing a decadelong decline in small businesses. This type of predatory, extortionate approach is going to wipe out so many businesses, and they're not going to come back."

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Five years ago, the merchant cash advance industry financed around $8 billion for small businesses. But the industry's reach has exploded as money from traditional banks has become less available to these borrowers. In 2019, it provided an estimated $19 billion in funding.

"I will put you in the hospital ... Call the police I don't care."

If the merchants fall behind on their payments, some lenders send threatening emails and texts and even pay visits to borrowers' homes to try to collect, lawyers and small business owners say.

NBC News reviewed some of the communications, including videos of a visit by a collection agent to a borrower's home and another to a borrower's office by an expletive-spewing man trying to collect on a loan. "You will end up hurt. Hurt bad," one text said.

The most common arrangements between these companies and small business borrowers aren't technically loans, and therefore their terms and the companies offering them aren't regulated.

That must change, Chopra said. "The FTC has to seriously look at rules that ban some of the most extortionate clauses in these loan contracts," he said, adding that the FTC is prepared to "go after some of the loan sharks and their lawyers who run lawsuit mills that are filing some of these sham collection actions."

How it works

Merchant cash advance companies like PowerUp aggressively cold-call, email and text small business owners offering quick and easy funding, merchants told NBC News. The offers are alluring to owners who often operate on the edge and are strapped for cash.

The companies generally provide a predetermined amount of money to a business in exchange for future receipts. As in any industry, some of the companies' practices are more problematic than others.

The agreements are enforceable contracts the borrowers have agreed to, lawyers say, but some of the aggressive collection practices, such as visiting borrowers' homes, aren't legal, they contend.

Under a typical deal, a business might receive $40,000 in exchange for agreeing to hand over $50,000 in future revenue over a few months. Merchants are typically required to repay the advances via automatic withdrawals from their bank accounts every day or week.

To secure the financing, business owners must provide documents detailing their recent sales and identifying their business partners, including their customers, and the amounts they owe, known as accounts receivable.

Owners must also give the lenders unfettered access to their bank accounts for the automatic withdrawals. If revenue dries up and the money stops flowing, merchant cash advance companies can freeze business owners' accounts by filing so-called confessions of judgment.

Companies often choose to make the filings in New York state, because its statute is powerful and easy to use. For instance, the filings can be entered without a hearing or review by a judge.

The filings are often in amounts that are twice the money owed, say lawyers who work in the arena. They are filed without a business' knowledge; merchants often learn about them when they try to pay their employees and find their accounts blocked, the lawyers say.

The merchant cash advance companies often demand that borrowers also pay attorneys' fees, which can be 25 percent to 33 percent of the balance due under a borrower's agreement, documents show.

Legal filings by cash advance companies, including confessions of judgment filed against small businesses, have been ballooning amid the coronavirus crisis. Court filings in New York state show at least 313 legal actions brought by 98 companies from March 9 to March 20.

The flood receded when New York courts stopped accepting electronic filings in nonessential matters on March 23.

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Itria Ventures of New York City, an affiliate of Biz2Credit, is among the merchant cash advance companies that filed numerous lawsuits in March. During the three-week period, Itria filed suit against 20 small businesses for nonpayment, court records show, most of them outside the state. In all cases, the businesses had stopped paying in March, although Itria Ventures said some of the defaults dated back months before the coronavirus clobbered operations and governments required that many nonessential companies close.

Small businesses sued by Itria included a builder's company in Minnesota, a grocery in South Carolina, a Holiday Inn Express in Wyoming and a barbecue joint in Alabama, court filings show.

Lone Spur Café, a six-restaurant chain in Arizona and Colorado, was also sued by Itria on March 19, with a demand for $282,000.

On March 23, Kayla Kight, a server at a Lone Spur in Prescott, Arizona, told NBC News that hers was the only restaurant in the group open for business and that it was just providing takeout.

Business is hurting, Kight said by phone. "It's down a lot, more than 50 percent," she said. "Normally we're usually really busy. But there's nobody outside."

NBC News asked Itria and Biz2Credit why they were taking such an aggressive tack against small businesses during a national disaster.

Rohit Arora, Biz2Credit's co-founder and chief executive, said in a telephone interview: "In some cases, we have to file these cases, but we also try to work with our customers. A lot of these companies had problems prior to coronavirus; they were on a payment plan and they defaulted."

Shortly after NBC News spoke with Arora, Itria withdrew its court actions against Lone Spur and other small businesses, court records show. He said the actions were dropped because they worked out payment plans.

'A cycle of death'

"Now, more than ever, alternative lending is going to be needed by small businesses," said Shane Heskin, a lawyer at White and Williams, who represents Indelicato of North River Outfitter and other merchants against direct lenders. "You can't have people freezing assets and demanding payments at a time like this."

When merchants fall behind on their payments, some direct lenders send threatening emails and texts, owners and their lawyers say. (NBC News received no evidence that PowerUp, Itria or Biz2Credit had sent menacing messages to borrowers or had sent debt collectors to their homes, or had engaged in any other improper collection practice.)

"If you don't send money to me today you're done," said a recent text shared by a business owner. "I will put you in the hospital and your family, call the police I don't care, you and your family will pay." Another text to the owner included a Google map showing a driving route the debt collector was taking to the borrower's home. "Currently in route to u right now," the text said. "I'll show you what type of loser you are you clown of a man."

Heskin, who testified last year before Congress about the lenders' tactics, said one of his law partners found a disemboweled rat splayed atop his mailbox in front of his home. He provided a photo to NBC News.

Indelicato said he began dealing with merchant cash advance companies around 2016, when he wanted to expand his business and needed more money than his conventional bank loan could provide. He said the companies have almost killed his business.

"We went from having good credit and eight or nine stores to having bad credit and three stores," Indelicato said in an interview. "On some of our loans, we were paying over 200 percent. It became a cycle of death. They have access to your bank accounts — they can wipe out an account overnight."

On March 27, NBC News contacted Bernard Feldman, a lawyer for PowerUp Lending, about the Indelicato case. In a return email, he said the firm had decided to stand down for the moment. "We have no intention of pursuing this matter at the present time," Feldman wrote.

An email to PowerUp requesting comment received no response.

Another small business borrower who's been through the wringer with merchant cash advance companies is Jon Runion of Runion Dental Group in Columbus, Ohio.

In mid-2018, Runion, an oral surgeon, wanted to add a second location to his practice and had initial approval from a bank for financing. But the bank backed out after he had signed a new lease and begun construction on the second office, and by spring of last year, Runion said, he desperately needed funding. The only source of capital he could find was from merchant cash advance companies.

"Working with a broker, I thought he was going to get me a traditional loan — that was how the conversation started," Runion said. "He more or less presented me the net cash I would receive and the payments. He didn't talk too much about how it was secured or the workings of it."

Soon after he received the money, the amount of the repayments began rocketing, Runion said. When they reached $70,000 a month, he had trouble paying his vendors.

Runion said he told the cash advance companies that he didn't have the money to pay them. "Their strategy was always to get more," he said.

He stopped paying around Thanksgiving and hired a restructuring firm, Second Wind Consultants, to help him work out the loans.

On March 15, the governor of Ohio ordered an end to all oral surgery procedures; Runion's practice is now open six to eight hours a week.

Runion said the companies that advanced him cash have persuaded an insurer holding $40,000 in reimbursements for procedures he had already completed to send the money to the advance company, not to Runion. Other insurers have stopped reimbursing Runion after the advance company notified them that it had sued him. The merchant cash advance agreements typically allow for these remedies.

Runion concedes that he signed the documents that have created the problems. "I tried to make it work," he said, "but I really was unable to."

Meanwhile, as the crisis spreads, cash advance companies are on the hunt for new customers. Some business owners said they are being swamped with new texts and emails offering funds.

"They're all capitalizing right now on the virus," a beleaguered borrower said, "and saying they are there to help you."

Gretchen Morgenson is the senior financial reporter for the NBC News Investigative Unit. A former stockbroker, she won the Pulitzer Prize in 2002 for her "trenchant and incisive" reporting on Wall Street.

Everything you need to know about loan sharks

A report published by the Centre for Social Justice  estimated 1.08 million people could be borrowing from an illegal money lender – more commonly known as a loan shark. This figure has more than trebled since 2010.   

With price increases on everything from fuel to food making it increasingly tough for households to make ends meet, unlicensed lenders are stepping in, offering loans to the desperate at astronomical interest rates.   

Loan sharks prey on the most vulnerable people in our society. They make false promises of a quick and easy loan, then demand extortionate levels of repayment once their victims are trapped in a cycle of debt.  

But what is a loan shark?    A loan shark is someone who lends money illegally without the correct permissions from the Financial Conduct Authority (FCA).    Lending money without a licence is illegal. However, it’s important to know that if you borrow from an illegal money lender, you have not broken the law, they have.   Illegal money lending is a hidden and under-reported crime and causes a great degree of terror and fear in those who suffer from it. Borrowers become trapped in a spiral of extortion, facing intimidation, violence and financial ruin.   Loan sharks are often seen as a last resort for people who have no other option for obtaining credit, including those with poor credit histories who are rejected by mainstream lenders. With just one unexpected bill, people can quickly find themselves in the grip of an illegal lender.    The real danger of loan sharks is not just the large sums of money they lend out and extortionate rates of interest they charge. It’s the psychological toll it takes on victims and their families, leaving them feeling trapped and helpless.    How can you spot a loan shark and what are the warning signs?    The loan shark might be a friend or acquaintance, or they might simply be someone known in the area for lending money.    They may deal in cash, rarely provide any paperwork, and will charge exorbitant amounts in repayment or they may not even be clear about what the borrower has to pay back.    Loan sharks can be very dangerous and sometimes they use threats and violence against those who fall behind with their payments.    Cyber loan sharks are also becoming more prevalent luring their prey in through social media and other online platforms. These online loan sharks use misleading ads, false promises of easy money, and harassment to trap unsuspecting victims in debt, using fear to suck them in and exploit their vulnerabilities.   If you can answer yes to one or more of these questions, you may be borrowing from an illegal money lender:   Did they offer you a cash loan or bank transfer?   Did they not give you paperwork?   Did they add huge amounts of interest or APR to your loan?   Have they threatened you?   Are you scared of people finding out?   Have they taken your bank card, benefit card, passport, watch or other valuables from you?   If you’re considering using a loan shark, think again. They often make it look like they’re helping you out but in reality, it’s a trap.   Is your lender legal?   If someone is lending you money, they must be registered with the Financial Conduct Authority (FCA). The  Financial Services Register  lists firms and individuals that have authorisation to offer loans and credit. Make sure you do your research before borrowing money.    How to get help    Are you struggling with debt? If so, it’s important to remember that you are not alone and it’s never too late to seek debt advice. A reputable and professional organisation like PayPlan can help get your finances back on track.    If you have borrowed money from a loan shark or you’re worried about a loved one, you can access specialist advice and support from the England Illegal Money Lending Team . The team exists to help victims of illegal lending and their friends and family.   The Stop Loan Sharks Helpline is available 24 hours a day, 7 days a week on 0300 555 2222 . You can also use the confidential live chat service on their website to speak to a support worker ( available 9am to 5pm, Monday to Friday).    This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago. Recent articles

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What is an IVA?

An Individual Voluntary Arrangement (IVA) is an agreement with the people you owe money to. You make affordable payments over a period of time (usually 5-6 years) and at the end, your remaining debts are written off.

What is a Debt Management Plan?

A debt management plan (DMP) allows you to pay back your creditors each month at an amount you can afford. The DMP lasts until you have repaid your debts in full or your circumstances improve.

What is a Self-employed IVA?

A self-employed Individual Voluntary Arrangement (IVA) is an agreement to pay back what you owe whilst still running your business. You make affordable payments over a period of time (usually 5-6 years) and at the end, your remaining debts are written off.

What is a Debt Relief Order?

A debt relief order is a solution available if you are not able to afford any payments to people you owe to. It freezes debts for a year at which time they are written off if your circumstances have not improved.

What is Bankruptcy?

Bankruptcy is a type of insolvency that involves applying to the court in order to clear your debts. There is an upfront fee and you may be required to make payments from your earnings into the bankruptcy for up to 3 years.

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How to Write a Successful Business Plan for a Loan

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Table of Contents

What does a loan business plan include?

What lenders look for in a business plan, business plan for loan examples, resources for writing a business plan.

A comprehensive and well-written business plan can be used to persuade lenders that your business is worth investing in and hopefully, improve your chances of getting approved for a small-business loan . Many lenders will ask that you include a business plan along with other documents as part of your loan application.

When writing a business plan for a loan, you’ll want to highlight your abilities, justify your need for capital and prove your ability to repay the debt. 

Here’s everything you need to know to get started.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

A successful business plan for a loan describes your financial goals and how you’ll achieve them. Although business plan components can vary from company to company, there are a few sections that are typically included in most plans.

These sections will help provide lenders with an overview of your business and explain why they should approve you for a loan.  

Executive summary

The executive summary is used to spark interest in your business. It may include high-level information about you, your products and services, your management team, employees, business location and financial details. Your mission statement can be added here as well.

To help build a lender’s confidence in your business, you can also include a concise overview of your growth plans in this section.

Company overview

The company overview is an area to describe the strengths of your business. If you didn’t explain what problems your business will solve in the executive summary, do it here. 

Highlight any experts on your team and what gives you a competitive advantage. You can also include specific details about your business such as when it was founded, your business entity type and history.

Products and services

Use this section to demonstrate the need for what you’re offering. Describe your products and services and explain how customers will benefit from having them. 

Detail any equipment or materials that you need to provide your goods and services — this may be particularly helpful if you’re looking for equipment or inventory financing . You’ll also want to disclose any patents or copyrights in this section.

Market analysis

Here you can demonstrate that you’ve done your homework and showcase your understanding of your industry, current outlook, trends, target market and competitors.

You can add details about your target market that include where you’ll find customers, ways you plan to market to them and how your products and services will be delivered to them.

» MORE: How to write a market analysis for a business plan

Marketing and sales plan

Your marketing and sales plan provides details on how you intend to attract your customers and build a client base. You can also explain the steps involved in the sale and delivery of your product or service.

At a high level, this section should identify your sales goals and how you plan to achieve them — showing a lender how you’re going to make money to repay potential debt.

Operational plan

The operational plan section covers the physical requirements of operating your business on a day-to-day basis. Depending on your type of business, this may include location, facility requirements, equipment, vehicles, inventory needs and supplies. Production goals, timelines, quality control and customer service details may also be included.

Management team

This section illustrates how your business will be organized. You can list the management team, owners, board of directors and consultants with details about their experience and the role they will play at your company. This is also a good place to include an organizational chart .

From this section, a lender should understand why you and your team are qualified to run a business and why they should feel confident lending you money — even if you’re a startup.

Funding request

In this section, you’ll explain the amount of money you’re requesting from the lender and why you need it. You’ll describe how the funds will be used and how you intend to repay the loan.

You may also discuss any funding requirements you anticipate over the next five years and your strategic financial plans for the future.

» Need help writing? Learn about the best business plan software .

Financial statements

When you’re writing a business plan for a loan, this is one of the most important sections. The goal is to use your financial statements to prove to a lender that your business is stable and will be able to repay any potential debt. 

In this section, you’ll want to include three to five years of income statements, cash flow statements and balance sheets. It can also be helpful to include an expense analysis, break-even analysis, capital expenditure budgets, projected income statements and projected cash flow statements. If you have collateral that you could put up to secure a loan, you should list it in this section as well.

If you’re a startup that doesn’t have much historical data to provide, you’ll want to include estimated costs, revenue and any other future projections you may have. Graphs and charts can be useful visual aids here.

In general, the more data you can use to show a lender your financial security, the better.

Finally, if necessary, supporting information and documents can be added in an appendix section. This may include credit histories, resumes, letters of reference, product pictures, licenses, permits, contracts and other legal documents.

Lenders will typically evaluate your loan application based on the five C’s — or characteristics — of credit : character, capacity, capital, conditions and collateral. Although your business plan won't contain everything a lender needs to complete its assessment, the document can highlight your strengths in each of these areas.

A lender will assess your character by reviewing your education, business experience and credit history. This assessment may also be extended to board members and your management team. Highlights of your strengths can be worked into the following sections of your business plan:

Executive summary.

Company overview.

Management team.

Capacity centers on your ability to repay the loan. Lenders will be looking at the revenue you plan to generate, your expenses, cash flow and your loan payment plan. This information can be included in the following sections:

Funding request.

Financial statements.

Capital is the amount of money you have invested in your business. Lenders can use it to judge your financial commitment to the business. You can use any of the following sections to highlight your financial commitment:

Operational plan.

Conditions refers to the purpose and market for your products and services. Lenders will be looking for information such as product demand, competition and industry trends. Information for this can be included in the following sections:

Market analysis.

Products and services.

Marketing and sales plan.

Collateral is an asset pledged to a lender to guarantee the repayment of a loan. This can be equipment, inventory, vehicles or something else of value. Use the following sections to include information on assets:

» MORE: How to get a business loan

Writing a business plan for a loan application can be intimidating, especially when you’re just getting started. It may be helpful to use a business plan template or refer to an existing sample as you’re going through the draft process.

Here are a few examples that you may find useful:

Business Plan Outline — Colorado Small Business Development Center

Business Plan Template — Iowa Small Business Development Center

Writing a Business Plan — Maine Small Business Development Center

Business Plan Workbook — Capital One

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U.S. Small Business Administration. The SBA offers a free self-paced course on writing a business plan. The course includes several videos, objectives for you to accomplish, as well as worksheets you can complete.

SCORE. SCORE, a nonprofit organization and resource partner of the SBA, offers free assistance that includes a step-by-step downloadable template to help startups create a business plan, and mentors who can review and refine your plan virtually or in person.

Small Business Development Centers. Similarly, your local SBDC can provide assistance with business planning and finding access to capital. These organizations also have virtual and in-person training courses, as well as opportunities to consult with business experts.

Business plan software. Although many business plan software platforms require a subscription, these tools can be useful if you want a templated approach that can break the process down for you step-by-step. Many of these services include a range of examples and templates, instruction videos and guides, and financial dashboards, among other features. You may also be able to use a free trial before committing to one of these software options.

A loan business plan outlines your business’s objectives, products or services, funding needs and finances. The goal of this document is to convince lenders that they should approve you for a business loan.

Not all lenders will require a business plan, but you’ll likely need one for bank and SBA loans. Even if it isn’t required, however, a lean business plan can be used to bolster your loan application.

Lenders ask for a business plan because they want to know that your business is and will continue to be financially stable. They want to know how you make money, spend money and plan to achieve your financial goals. All of this information allows them to assess whether you’ll be able to repay a loan and decide if they should approve your application.

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• Is a Loan Business Right for You?

Develop a Business Plan

Form a legal entity, register your business with the irs, figure out financing.

• Get the Required Licenses & Permits

Set Up Business Accounting

Get business insurance.

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The Bottom Line

• Personal Loans

How to Start a Personal Loan Business

Before you start a moneylender business, learn more about what’s involved

If you’re hoping to start a business , one of the most profitable is offering personal loans to others. However, getting the startup cash and investors required can be challenging.

Before you decide to start a personal loan business, it’s important to understand the ins and outs and be prepared for potential setbacks.

Key Takeaways

• A personal loan business can be flexible and profitable.
• You need investors to back a personal loan business, and it can be challenging to find them.
• It’s important to prepare ahead of time with paperwork, including loan documents.
• Federal, state, and local laws can make starting a personal loan business challenging, and you should review necessary information before moving forward.

Decide Whether a Personal Loan Business Is Right for You

Before you move forward with a personal loan business, you need to decide if it’s the right path for you. There are different potential ways to move forward with a personal loan business. Some potential options include:

• Your own money : You lend your own money to others. You can choose to provide secured loans or unsecured loans . However, you need to have a large amount of capital to get started, since you’re using your own money to move forward. In this case, though, you keep all the interest paid on the loan and can charge what fees you wish.
• Investor money : With this type of business, investors provide you with the funds to make loans. The investors receive the interest from the payments, and you receive compensation in the form of a loan fee charge at origination.
• Peer-to-peer (P2P) lending : Rather than directly lending money, you provide the means to connect borrowers and lenders . You might do it through an app or website. You take a cut of the deal but aren’t putting up your own money to get started.

A personal loan business can be profitable since you have the chance to earn money upfront from origination and administration fees. Plus, depending on how you set up your business, you might be able to benefit from the interest earned on repayments .

On the other hand, though, you have to be prepared to shoulder some of the risks. If a borrower misses payments or defaults , you could lose money—especially if you’re lending out your own money.

Don’t forget to consider the market potential as well. Loans are popular, and it’s possible to find customers all over the world. Even so, the industry has slowed in recent years, and there are concerns that increased scrutiny for moneylenders could lead to more challenges for those who want to start a personal loan business.

Pros and Cons of a Personal Loan Business

Potential for good profits, including upfront cash flow from charging fees

Flexible business model that can be managed from home if you choose

Customers available from a variety of markets, since many people need loans

Regulations can differ at the federal, state, and local levels, and it’s hard to predict how you need to comply.

It can be difficult to get enough capital to start, whether you use your own money or look for investors.

Growth in the installment loan industry has been slowing in the last few years.

Make sure to carefully consider the pros and cons of a personal loan business before you get started. Realize that regulations and the need for capital can make this a challenging business, even if you have the potential to make a good profit.

Don’t forget that heavy regulation at various levels of government can regulate how you collect interest, who you can lend to, and other aspects of personal loans. Working through the different regulations can be challenging, and it’s important to remember that financial services come with a lot of red tape. In fact, it’s important to note that there’s no one-size-fits-all approach to a moneylender business. You probably won’t be able to take one business template from one place and apply it to the same loan business in another location.

Next, you need to create a business plan . Unless you’re using your own money to fund the loans you make, you’ll need investors and other backers. Most of them aren’t likely to provide you with the money you need to get started unless you have a good business plan.

Some of the main elements of a business plan include the following:

• Executive summary : This is the overview of your business plan. It provides a way for investors and others to quickly understand the basics of your idea and how you expect to make money. It should be the last thing you write, even though it will be at the beginning of your overall plan.
• Business summary : Describe your business in this section. It should be an overview of what you hope to accomplish with your business and your goals. Key people in your company should be recognized here, along with their skills and what they contribute to the success of your business.
• Products : Be clear about what you’re providing and how you plan to deliver. Make sure you’re clear about the types of loans you’ll provide. This can include whether you plan to focus on microlending , traditional personal installment loans , cash advances , or some other type of loan . You can also share whether you plan to provide options such as allowing co-signers or accepting collateral .
• Market analysis : Next, you need to provide an analysis of your target market and potential demand. You’ll need to back this up with research and have an analysis of what type of growth you can reasonably expect, in addition to potential challenges.
• Competitive analysis : Take a look at your likely competitors in the space. You should be able to compare their strengths and weaknesses to your own and provide an overview of how your product and business will be advantageous compared to your competitors.
• Marketing plan : Provide a marketing plan . How will you reach your target market? What channels will you use, and do you have any promotional strategies? Flesh out a plan to show how you will reach customers and convert them.
• Operations plan : This section is all about logistics . Where will you be located? Will you have offices or operate online? Do you have special equipment or people who can be used to make this business a success?
• Financial plan : Don’t forget to lay out the numbers. In general, you should plan to have projects for startup costs and the type of investment you’ll need. Provide profit and loss estimates, and detail your expected cash flow . You should be able to estimate three to five years.
• Appendix : If you have any supplementary materials and documentation, it should go in this section of your business plan.

Once you have your business plan and a roadmap for the future, you need to form your legal entity. Decide whether you should be a sole proprietor or if it makes sense for you to form a limited liability company (LLC) or some other partnership . You can also form a corporation . An accountant or a business attorney can help you figure out what type of structure makes sense for you.

If you think you’ll hire others to work in the business, or if you have investors who might want to be partners, you’ll need to keep that in mind as you form a legal business entity. Depending on your state, you might need to file articles of organization and register your business with a city or state office.

You’ll need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) as you move forward. This will be used when you file your business or partnership tax returns . You can go to the IRS website and get an EIN and register your business within a matter of minutes. It’s also possible to complete this step by mail or fax.

One of the most challenging parts of starting a personal loan business is making sure you have the financing you need. If you’re going to loan money, you need a significant amount of capital.

If you’re using investors’ funds, you’ll need to build relationships and convince others to provide you with capital to lend to others. You’ll need to have agreements in place with your backers so that they know how much they can expect, including what types of returns they’re likely to receive.

All of this can require a lot of expense as you consult with lawyers and make sure you’re in compliance with federal, state, and local regulations.

Get the Required Licenses and Permits

Next, you need to figure out what licenses you need to operate a lending business. You might need permits as well, especially if you’re occupying a building. States, counties, and cities might have their own rules. These rules will be based on whether you operate out of your home or another location. Make sure you understand the requirements before you move forward and get the appropriate paperwork filed to operate legally.

Remember, too, that you might have to get certain licenses for financial services, depending on where you operate. Taking the appropriate tests and paying for the licenses can be costly, so evaluate whether this is something you want to pursue.

Don’t forget to set up business accounting. You should have a separate system from your personal finances. You’ll need bookkeeping and payroll for employees. You also need a way to keep track of when borrowers make payments and how much of each payment should go toward the principal and how much should go toward interest. And, if you have investors, your accounting should also take into account what’s going to them.

As a moneylender, you need business insurance to protect you if too many borrowers default or something else happens. Often, you might need business insurance to protect you in the case of lawsuits as well. If you have a building, you’ll need insurance to protect your premises. Don’t forget about workers’ compensation as well. There are many different types of business insurance, and you need to make sure you’re paying for policies that fit your needs and can help protect your assets.

What to Expect When Opening a Personal Loan Business

When you open a personal loan business, you should be prepared to work long hours and be ready to market yourself and your business. It’s also important to make sure you have enough capital available to fulfill the loans you plan to make to others, as well as meet all federal, state, and local regulatory requirements.

Understand how to put processes in place when deciding whom to lend to. Check with local regulations on how to evaluate someone’s creditworthiness and the types of agreements you need to have borrowers sign. Don’t forget that some states have caps on the interest you can charge on loans, so you should know how to set annual percentage rates (APRs) (which include origination and other fees) to be compliant.

You also need to set up payment systems to collect payment (plus interest) from your borrowers. This can include online systems, mail-in, or other arrangements. If you plan to automatically deduct from accounts, you need to have the right agreements in place and get permission for auto-drafts from bank accounts. All of this needs to be done with regulation in mind and best practices for security. You must be prepared to issue account statements to each borrower, showing them how much of each payment is going to the principal and how much is going to interest.

Don’t forget to create a collections policy. You need to have an idea of how to pursue nonpayment if someone falls behind. Once again, it’s important to make sure that how you approach collections is according to federal, state, and local regulations on personal lending businesses.

You should also have insurance and investors prepared to help you manage your business finances if you have people defaulting. To reduce the chances of default, you might need to consider how you will vet borrowers, including running credit checks and deciding what minimum credit score you’ll require.

Additionally, you’ll need to have policies for handling sensitive personal finance information. You’ll likely have to collect information regarding Social Security numbers (SSNs) , bank accounts, and other sensitive matters. You’ll need a way to protect your database and have protocols in place for keeping personal data secure.

How Do I Start a Private Lending Business?

In many cases, you need access to a large amount of capital to start a private lending business. This can come from your own finances, or you might need to get money from investors. You also need to meet specific regulations in your state and get the appropriate licenses, insurance, and permits to start a lending business.

How Does a Moneylender Business Work?

In a moneylender business, a lender provides cash to a borrower. The borrower pays interest, and they might even pay origination fees and other costs. As the borrower repays the loan, more capital is available for other loans, and the lender makes a profit from the interest they receive.

How Do Loan Providers Make Money?

Loan providers usually make money by charging interest on loans. The interest charge is normally part of the repayment process, and how the lender is compensated. Loan providers might also make money from fees they charge, including origination and administrative fees.

A personal loan business can be a profitable way to earn money. It’s relatively easy to manage, as long as you have a good system for keeping track of the progress of loan repayment. However, you need access to capital and need to be prepared to go through the regulatory process. Also, many loan businesses need good legal representation to help them navigate laws and regulations, in addition to drafting loan agreements and other documents.

Before you decide to lend money to others, carefully consider your situation and whether it makes sense for you to get involved with a personal loan business.

This article represents general guidance on setting up a personal lending business. Federal, state, and local regulations affect how a personal loan business works in each location, and you should check requirements before starting a new lending business. Consider working with an attorney or other professional to navigate the extensive regulation in the financial services industry.

IBISWorld. “ Installment Lenders Industry in the U.S.—Market Research Report .”

Internal Revenue Service. “ Apply for an Employer Identification Number (EIN) Online .”

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Loan Officer Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped thousands of loan officers develop business plans to grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a loan officer business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Loan Officer Business Plan?

A business plan provides a snapshot of your loan business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Loan Officer

If you’re looking to grow your existing loan business, you need a business plan. A business plan will plan out the growth of your loan business in order to improve your chances of success. Your loan business plan is a living document that should be updated annually as your company grows and changes.

Finish Your Business Plan Today!

If you want to grow your loan officer business, you need a business plan. Below are links to each section of your loan officer business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

In it you must provide an overview of each of the sections of your plan. For example, give a brief overview of the loan industry. Discuss the type of loan business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of loan business you are operating.

For example, you might operate one of the following types of loan businesses:

• Commercial Loan Officer : this type of loan business focuses on arranging business loans.
• Consumer Loan Officer: this type of business focuses on providing loans for things such as vehicles.
• Mortgage Loan Officer: this type of loan obtains loans for consumer to purchase real estate.

In addition to explaining the type of loan business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, dollar value of loans arranged, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the loan industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the loan industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your loan business plan:

• How big is the loan industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your loan business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your loan officer business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: parents, students, professionals, businesses, couples, families, prospective home buyers, prospective car buyers, contractors, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of loan business you operate. Clearly, someone interested in purchasing a new car would respond to different marketing promotions than a business seeking equipment financing, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most loan businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other loan businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes commercial banks, online loan brokers, etc. You need to mention such competition as well.

With regards to direct competition, you want to describe the other loan businesses with which you compete. Most likely, your direct competitors will be loan officers located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of loans do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide higher value loans?
• Will you offer lower interest rates on loans?
• Will you provide better customer service?
• Will you offer a wider variety of loan options?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a loan officer business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of loan company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to loans, will you provide insurance, financial advisory, or real estate services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your loan company. Document your location and mention how the location will impact your success. For example, is your loan business located near a real estate brokerage, or car dealership, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your loan officer marketing plan is the promotions section. This is perhaps the most important section of your plan. Here you will document how you will drive customers to your website and/or location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your loan business, including processing loan applications, arranging signings, marketing your business, paperwork, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to arrange your 100 th loan, or when you hope to reach $X in revenue. It could also be when you expect to expand your loan business to a new city.  

Management Team

To demonstrate your loan business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing loan businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience as a loan officer or success being a local bank or credit union manager.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you work on commission, or on a fee for services model? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your loan business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a loan business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or outline your strategic partnerships with local realtors and lenders.  

Putting together a business plan for your loan officer business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the loan industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful loan business.  

Loan Officer Business Plan FAQs

What is the easiest way to complete my loan officer business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Loan Officer Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of loan officer business you are operating and the status; for example, are you a startup, do you have a loan officer business that you would like to grow, or are you operating a chain of loan officer businesses?

Don’t you wish there was a faster, easier way to finish your Loan Officer business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Loan Shark: Strategizing Business over Counter Measuring by Authorities

2012, Proceeding of International Conference on Media Communication and Culture

Loan sharking can be briefly defined as the practice of lending money at exorbitant rates of interest, to borrowers who are more often desperate, vulnerable, and come from low income households. The victims usually resort to loan sharks as a last resort for their monetary problems but find themselves dealing with more problems than they began with when they are unable to repay the loans they borrowed. In most cases, this results in retaliation by threat, strong-arming, acts of pure violence and even murder on the part of the loan-sharks. Despite several measures taken by authorities to prevent, counter, or ban money-lending altogether, loan sharks still manage to survive and operate their businesses with relative prosperity, right under the government's noses. This article seeks to examine the issue of loan-sharking in the Malaysian context by exploring the methods and strategies commonly used by loan sharks-or Ah Long, as they are commonly known in Malaysia-to conduct their business. Case studies are also included from different countries such as Thailand, South Korea and Egypt. We will then discuss and analyze the success of several countermeasures used in Malaysia to counter the pandemic of loan-sharking operations in the country, such as the creation of micro financing, Agro banking, and Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN). The significance of this study is to identify and improve pragmatic solutions to counter loan sharking operations in the country.

Related Papers

Journal of Arts and Humanities

Gilbert Nartea

Kshetrimayum Ranjan

Manipur is industrially and economically backward state of the country which is located at the extreme corner of the north east India. It is a state where more than 70 per cent of population depends on agriculture. Most of the banks in the state, particularly the State Bank of India, are overburdened with customers and it becomes quite difficult for the bank staffs to provide better customer service to its unmanageable number of customers. As a result of this, most of the people especially those who are financially excluded are not in a position to avail of the banking facilities. Further, despite of rigorous effort made by the government both state and central governments through different SHG-BLP under Microfinance scheme, maximum population are still financially excluded. In this situation, the small financial services provided by Unincorporated Financial Bodies or Registered Moneylenders are highly appreciable. The present paper will be focussing mainly on the relationship that registered moneylenders have been maintaining to attract the borrowers. Natures of services or schemes which are tailor-cut as per the requirements of borrowers made these registered moneylenders keep on growing their businesses.

norhaziah nawai , Noor Shariff

The aim of microcredit is to help the poor and lower income group to get funds for their business activities and to improve their lives. Usually, the loans given are very small, in short term period, no collateral needed and required weekly repayment. However, repayment problems become the main obstacle for the microcredit institutions to continue providing microcredit services. This is because most of the microcredit institutions are Non- Governmental Organizations (NGOs), where they received funds from the government and donors and there are not profits oriented organizations. Therefore, this paper tries to review the determinants of repayment performances in microcredit programs which can be divided into four factors namely borrower characteristics, firm characteristics, loan characteristics and lender characteristics.

Chuoi Le , Khairunnisa Musari

The very poor people in the world have difficult to access formal financial institution. They are forced by needs to borrow money from loan sharks. Loan shark with its high interest rate is a real humanitarian problem which usually leads the victims into other humanitarian cases. Most of the very poor people live in Islamic countries. They urged to be addressed. In Asian countries, some microfinance institutions and rural banks have provided loans for them through what they mention as 'nanofinance'. Unfortunately, most of loans still also charge an interest rate. Nevertheless, the practice of nanofinance actually in line with the mission of Islamic economics. Nanofinance, a new paradigm of Islamic microfinance, is truly a humanitarian mission because caring to the very poor. The existence of nanofinance is needed due to microfinance seems not conducive to the very poor. Islamic finance should be existed to help them. Therefore, this paper would like to encourage the establishment of Islamic humanitarian institution for dispense the humanitarian aid and funds to recovery of social economy the very poor people or the needy people through nanofinance. This paper offers a proposed model of institutional arrangement for this humanitarian institution to synergize with Islamic Development Bank (IDB) and Organization of Islamic Cooperation (OIC) to develop Islamic nanofinance to avoid the very poor in Islamic countries from the loan shark, poverty, and helping them to self-sufficient.

acpc.gov.ph

Padmeswar Doley

Cons of Microfinance: A Case Study of Andhra Pradesh

Yousuf Daas

The microcredit sector in Andhra Pradesh recently saw a series of challenges and mishaps as a result of extensive and uncontrolled lending. The overall effect was over-indebtedness and, consequently mass loan repayment defaults. Lending institutions resorted to unethical financial activities for recovering loans, such as confiscation of property and social shaming of the defaulting borrowers. These actions by the microfinance institutions led to widespread suicide cases among microfinance borrowers. This paper critically explores the disadvantages associated with the microfinance sector, especially among the poor in the society who hold to the perception that loans can provide their exit to poverty. The piece of writing will primarily focus on the case study of the microcredit borrowers in Andhra Pradesh, India. A brief overview of the microfinance concept will be provided in the first section. The second part will incorporate the description of the case study context in regards to the disadvantages of microfinance. The major cons that will be comprehensively examined in the paper, include the rising death cases among borrowers due to financial stress, deepening poverty, high-interest rates, in-dignifying the borrowers, and overall decline in the community cohesiveness. These cons contributed to the crisis of Andhra Pradesh which rose to become a reference point as a catastrophic financial intervention of the century. The paper concludes by suggesting a community-based approach to lending that ties the level of credit to sustainability and viability of a micro venture. Keywords: microfinance, poverty, Andhra Pradesh, self –help groups, India, women.

Houda CHALABI

Asian Academic Research Journal of Social Science & Humanities (AARJSH)

Khairunnisa Musari

Most developing countries have very micro society in large numbers. Many of these do not have ability to access bank financing and are forced the situation to borrow the loan shark. The need of very micro society to obtain finance is not accommodated by banks. Some microfinance institutions provide financial intermediation for them, but most of the loans use the interest rate despite it looks relatively low and regarded not burden to the borrower. This study found the need of loans for the very micro society is spread in some countries. This is evident in some years sprung microfinance institution which provide opportunities for the very poor, very low income, and very micro enterprises to access financial services through what they call 'nanofinance'. So, this paper attempts to: (1) Describe the nanofinance activity in Indonesia, Cambodia, Thailand, and India. (2) Redefine the microfinance for the very micro society become nanofinance. (3) Reconstruct the scheme of nanofinance through philanthropic linkage program between philanthropy institution and microfinance institutions. JEL Classification: G21, G23, I30, O10, Z13

Syed Ledrose

Richard Nkrumah

Dr. Richard Nkrumah

ABSTRACT The study assessed factors impeding group lending in the Micro finance Institutions (MFI’s), a case study of Opportunity international Savings and Loans Company. Purposive sampling procedure was used to select five different groups of borrowers from three branches of opportunity international in Accra; a total sample of 100 borrowers was used. Questionnaires were used to obtain data from the borrowers. Four objective questions were answered based on the borrowers’ responses; The study observed that, as part of the criteria used by Micro finance Institutions (MFI’s) to assess loans; the number of group members and the number of loans accessed elsewhere by the applicants were less considered, however this contributed to a higher default rate. The study also found that the major challenge of group borrowing was risk sharing, punishment of group member defaulters was difficult because there were no strong and proper agreements on defaults, More so the institutions left the responsibility of repayment on the groups. The consequential effect of the challenges on the MFI was that most borrowers defaulted as a result profit on lending grew downwards. There were also lots of litigation which affected the public credibility of the institution.

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How To Start A Loan Shark Business In South Africa

What is a Loan Shark?

A loan shark is a person who offers loans at extremely high interest rates, has strict terms of collection upon failure, and generally operates outside the law.

1. Operating premises

Micro lenders don’t have a lot of overhead costs, you can start this business from anywhere. Even directly from your own home, you will just have to set up a professional space where you will meet with clients.

2. Legalities

You will need to have licenses before operating, one little mistake can lend you in hot legal waters. Some of the licenses include registering your services with the National Credit Regulator. You will also need to register your business with the CIPC, this only costs R175.

You will also need to have a good lawyer on your side, it’s important to hire a lawyer to handle all the paperwork, doing this will ensure that you stay on the good side of the law. Credit is a very sensitive issue, everything should be done by the book, a lawyer will be very useful. Don’t attempt to handle all the legalities by yourself.

3. Employees

You don’t need to have any full-time employees when starting a micro lending business. All you will need is a bookkeeper and someone who works in administration at most.

4. Marketing

You will need to market your business so that more people will know about it. First things first, a website will be needed for displaying all information, information like the terms of your loan and interest rates. You can get a website for R1 200 from Promta Web Services. Other marketing techniques include running paid adverts on social media and Google.

Frequently Asked Questions (FAQs).

How much money do you need to be a loan shark in South Africa?

The minimum investment is usually only R25, which also gives you the ability to invest in a lot of loans as a way of spreading around your risk.

Is loan sharks legal in South Africa?

Is it legal to be a loan shark in South Africa ? Loan sharking is usually illegal, although predatory lending with extremely high interest rates such as payday or title loans is sometimes considered to be loan sharking, even when it is legal. Loan sharks sometimes enforce repayment by blackmail or threats of violence.

Can I lend and charge interest South Africa?

If you want to lend money and charge interest, you must be a registered credit provider.

How much do loan sharks charge in South Africa?

The report, “Social Grants: Challenging Reckless Lending in South Africa”, by the Black Sash and London School of Economics shows that interest rates charged by loan sharks range between 50% and 112% of the principal loan amount.

Can a private person lend money with interest in South Africa?

Like every investment there are associated risks, but today it is possible for an individual to lend money and earn significant returns on it. Most of us remember the movies of 1980s where unscrupulous moneylenders would harass and torment the borrower with exorbitant interest rates and absurd terms and conditions.

What happens if I don’t pay my loan in South Africa?

If you miss a payment, your entire payment plan will be annulled. For your debt review to be successful, you need to stick to every monthly payment in your repayment plan so that you don’t put your debt review agreement at risk.

How can I write off my debt in South Africa?

You will have to apply – and there’s a deadline

The debts won’t be automatically written off – you will have to apply to the National Credit Regulator (NCR), who will decide whether your situation is desperate enough. There will be a window of four years to apply from when the bill takes effect.

Why is it called a loan shark in South Africa?

Loan sharks are often illegal. Loan sharks are called ‘loan sharks’ because they are like sharks; aggressive, angry, and greedy. They can do many illegal things to just get repayment, like kidnapping or even killing.

Is loan shark a crime in South Africa?

Loan sharking is an illegal, unregulated trade, and more people fall prey to these illicit operators than you might think. Very few report loan sharks to the police because they are convinced that they will also be in trouble for borrowing money illegally.

How do loan sharks get their money in South Africa?

Key Takeaways. Loan sharks lend money at extremely high interest rates and often use threats of violence to collect debts. They are often members of organized crime syndicates.

What’s another word for loan shark in South Africa?

In this page you can discover 3 synonyms, antonyms, idiomatic expressions, and related words for loan-shark, like: usurer, shylock and moneylender.

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Where to Get a Microloan for Your New Business

A microloan is a small, short-term loan extended to individuals, entrepreneurs, or small businesses to help them with financing needs. These loans typically have lower principal amounts than traditional loans and are intended to support borrowers who may not have access to conventional financial services, often due to lack of credit history or collateral.

Microloans are often provided by microfinance institutions, non-profit organizations, or government programs, with the aim of promoting economic development, financial inclusion, and poverty alleviation. Interest rates on microloans can vary widely depending on the lending institution and borrower’s circumstances.

Kiva (www.kiva.org) – Kiva is a non-profit organization that provides microloans to entrepreneurs around the world. You can apply for a loan directly on their website.

Accion (www.accion.org) – Accion is a global nonprofit that offers microloans and business support for entrepreneurs. They have a strong presence in the United States and several countries around the world.

Grameen America (www.grameenamerica.org) – Grameen America is the U.S. branch of the Grameen Bank, which was founded by Nobel Peace Prize winner Muhammad Yunus. They provide microloans to women entrepreneurs living in poverty in the United States.

Lendio (www.lendio.com) – Lendio is an online marketplace that connects small business owners with a variety of loan options, including microloans, from a network of lenders.

PayPal Working Capital (www.paypal.com/workingcapital) – PayPal offers short-term loans to businesses that use PayPal for their sales transactions. Eligibility and loan amounts depend on your PayPal sales history.

SBA Microloan Program (www.sba.gov/microloans) – The U.S. Small Business Administration (SBA) offers a microloan program that provides loans of up to $50,000 to small businesses and non-profit child care centers. Search for SBA-approved intermediaries in your area.

OnDeck (www.ondeck.com) – OnDeck is an online lender that offers short-term loans and lines of credit to small businesses in the United States, Canada, and Australia.

BlueVine (www.bluevine.com) – BlueVine is an online lender that provides working capital solutions, including lines of credit and invoice factoring, to small and medium-sized businesses in the United States.

Funding Circle (www.fundingcircle.com) – Funding Circle is an online marketplace that connects small businesses with investors for fixed-term loans. They operate in the United States, United Kingdom, Germany, and the Netherlands.

Credibly (www.credibly.com) – Credibly is an online lender that offers a variety of financing solutions, including working capital loans and business expansion loans, for small and medium-sized businesses in the United States.

StreetShares (www.streetshares.com) – StreetShares is an online lending platform that specializes in providing financing for veteran-owned and main street businesses in the United States.

Zidisha (www.zidisha.org) – Zidisha is a non-profit peer-to-peer lending platform that directly connects entrepreneurs in developing countries with lenders worldwide.

FINCA International (www.finca.org) – FINCA is a global microfinance organization that provides loans, savings accounts, and other financial services to low-income entrepreneurs in developing countries.

Local banks and credit unions – Many local banks and credit unions offer small business loans and microloans, often with competitive interest rates and flexible terms. Check with financial institutions in your area to explore their offerings.

Remember to carefully research and compare each option’s terms, conditions, and eligibility criteria to determine which microloan is best suited to your business needs. Availability may vary depending on your location and specific circumstances.

From Dream to Reality: A Comprehensive Guide to Starting Your First Business

Market research and competition analysis for new business startups, the power of swot analysis for new businesses, creating a minimum viable product for a new businesses, the art of networking: connecting with like-minded individuals and industry professionals, example business plan for start-up, how to register your new business name, how to register for a sales tax license, where to get a peer-to-peer loan for your business, how to find angel investors for your startup, navigating the venture capital landscape: securing funding for your startup, discovering business grants and competitions for your startup, the art of pitching: how to present your business idea with confidence and clarity, cash-basis vs. accrual-basis accounting for small businesses: making the right choice, developing a budget and financial projections for new small businesses, setting up an effective payroll system for small business, how to monitor cash flow for new small businesses, understanding your target audience and creating buyer personas, how to create a logo for your new business with no design skills, defining your marketing goals for a new small business, developing your unique selling proposition, how to optimize the online presence of your new business, editor's picks, everlywell home health tests, toybox 3d printer for kids, budsies custom plush animals, popular products, pretty rugged faux fur blankets, jackets & bags, proven skincare, the woobles crochet kits, next in the tank, mosh protein bars, arber plant care, flaus electric flosser, sip herbals coffee alternative.

• May 2, 2013

All private lenders are loan sharks! I’ve heard this statement many times from both borrowers and brokers who have not had such a positive experience with a private lender. I recently wrote and article in the Colorado Real Estate Journal focusing on this very statement. Below is an excerpt of the published article.

Before discussing the myths and realities about private lending and addressing the statement private lenders are “loan sharks”, it is important to define what exactly is private lending. If one were to ask five different people to define private lending, one would likely get five very different answers. Private lending is a niche product that many people are not fully familiar with.

Private Lending/Hard Money lending in its simplest form is a lender that makes a loan on a hard asset as collateral (this is where the term hard money lending comes from). A traditional lender when making loan decisions puts considerable weight on a borrower/properties debt to income ratio (debt service coverage ratio), current financials, tax returns, business plan, credit score, etc… In many cases, ratios must meet certain thresholds in order for a loan to get funded. With the recent credit crisis, the underwriting standards have become even more challenging for many borrowers therefore prohibiting them from obtaining conventional financing.

Private lending is radically different than traditional bank lending. A private lender loans up to 60% (typically but varies based on the lender) on the value of the property (residential or commercial real estate) without having to satisfy all the aforementioned metrics that a bank requires. As a result, private lenders are able to fund loans that do not fit traditional lending guidelines. They are also able to close loans very quickly (we have closed and funded loans in as quick as three days). How can a private lender not follow traditional guidelines and fund so quickly? The simple answer is that a private lender funds in cash and is not a bank and therefore not bound by various regulators.

At the beginning of the article I started with the statement: “private lenders are loan sharks”. This is the most common misconception about private lending because many people do not fully understand private lending and when it is best utilized. Private lenders like myself are in the business of providing financing when traditional sources don’t work for whatever reason. Although the rates are moderately higher than a traditional lender, the loan ultimately saves the borrower substantial money. In the two cases above (see article below for the details on the savings to borrowers) , both borrowers were destined to lose substantial money if they did not complete their financing quickly, the borrower in Frisco was facing a default rate of 38% along with further dings to his credit and the Denver attorney was facing a loss of over 150k in equity that was put into the property. The private loan saved each of these borrowers thousands of dollars. Although private lending is not used in every situation, private lending is an important tool for any real estate professional when conventional financing is not an option.

If you have any questions on private lending or hard money lending; feel free to post the question here and I will respond.

By Glen Weinberg

COO/Partner Fairview Commercial Lending

See the Original Article published in the Colorado Real Estate Journal:

Learn more about private lenders in our free guide to private lending: https://www.fairviewlending.com/blog/wp-content/uploads/2013/03/Private-lending-CREJ.pdf

Fill out our one page private lending application: https://www.fairviewlending.com/loan_app.htm

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How to Start a Micro Cash Loan Business in South Africa

By: Author Tony Martins Ajaero

Home » Africa » South Africa

Do you want to start a micro cash loan business from home? If YES, here is a complete guide to starting a micro cash loan business with NO money and no experience .

Starting a Micro Cash Loan Business in south africa might be one of the most lucrative businesses to venture into. With the state of the economy experienced in South Africa, people are looking for alternative means of getting loans. This is because the usual salaries are no longer enough to meet all the responsibilities average people have to face.

And starting this type of business is relatively easy if one has the right kind of background. A business of this sort helps people gain access to money quick without all the stringent policies of a regular financial institution. The interest rates could vary since there is a ceiling on how much people can borrow while repayment duration remains within 36 months.

With the NCR regulating amounts payable by consumers, the customer may feel very comfortable to utilize any one of these micro cash loan institutions.

More and more people are looking for loans like this, despite the fact that political views may be somewhat leaning towards the negative side of unsecured loan organizations. The government and politicians will usually stay on the side that fits the best interest of her people.

Keeping vulnerable people from loan sharks and con artists is the main reason for most of the formalities it takes to establish such organization, but these rules do pay off in the long run.

There are definitely other people offering the same kind of service as you and so competition will become a major issue when thinking of entering this field. But this is the same with any other kind of business out there, so it is not exclusive to the micro loan businesses.

Anyone choosing to get into such a business would have to do a thorough feasibility study to know the possibility of making profit in such a venture. The principle of running this business is simple on the surface. Get lots of liquid cash, look for those who need loans and give them the loans at a certain interest rate.

The regular banks use other people’s monies all the time to enter into such transactions, but the difference between the regular banks and the micro finance institution is the ceiling regular banks have on their interest rate. All in all, this is a good business to go into if all the necessary things are done to ensure success.

Steps to Starting a Micro Cash Loan Business in South Africa

1. understand the industry.

The Lending industry in South Africa has had its own share of ups and downs, but it experienced a major growth surge in the mid 1990’s to early 2000’s. People could access loans from R6000 upward and shorter than 36 months duration for payback making the demand for micro cash loans spike during this period.

The first micro loan crisis was experienced in the late 90’s when the authorities increased interest rates to allow more capital in the country. This, coupled with the weakening Rand, caused many micro financing institutions to close up.

But in 2002, a reform in the industry was achieved when the MFRC which was the seed institution of the National Credit Regulator opened the market for high interest rate loans, and made it mandatory for every micro lending organization to register with the NCR, from then on the NCR would regulate the interest rates and other key factors that play major roles in this sector.

In 2007, another financial crisis hit the industry, but was rectified again in 2010 due to large banks and other lenders entering the market with more stringent criteria for home loans and other factors, and made borrowers run into the micro loan market.

For now, the market is really stable due to these reformations and regulations so a future crisis of the industry is not likely. By Introducing the National Credit Act, strict restrictions have been placed on those desiring to start a micro loaning service and the consumers who patronize them.

This act demands full disclosure on all payable charges on the principal, including any other fees charged which must be explicitly made known to the consumer. A repayment schedule must be in the form so that the consumer has more time to think about the loan before taking it. The National Credit Regulations include the maximum rates of interests applicable to a variety of loan types.

Interest rate caps are now enforced for various credit types, lending agencies with more than 100 credit agreements or a check book of more than R500,000 without registering with the NCR may have all their loan agreements declared null and void or face financial penalties.

Factors that produce consumer indebtedness include; when lenders abuse attachment orders known as garnishee orders, and other additional charges that are levied beyond the interest rates of the loan itself. These include initiation fees and insurance charges that are mandatory for the consumer to secure a loan.

We must also consider the political perspective on the micro loan industry with many politicians stating that unsecure lending and the blacklisting of defaulters are some of the reason for high unemployment because employers seek to know the credit history of potential employees before hiring them.

Others have seen this industry as the reason for violent wage negotiations as employees demand increase in their salaries because of the debts being paid. These days, anyone with a desire to establish a micro cash loan business in South Africa can do so, as long as certain criteria are met.

The registration fee is R2000 and a branch fee of R250 is also required. The loans do not exceed R10,000 and the duration for repayment should not exceed 36 months, loans are not collected by credit cards or chequing accounts, the institution must be registered with the MFCR.

The person or persons desiring to enter into the micro cash loan business should consider certain incentives that make this endeavor worthwhile and lucrative.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The demographics and psychographic composition of those who need the services of a micro cash loan business in South Africa extends beyond the normal sect one would originally expect. Seeing that such services were originally put in place to help the poor access loans, the spectrum of people who need these services can be extended to workers within a certain area of business.

Workers are excellent prospects for a business like this, what with the rigid salary increment and ever increasing bills, they usually find themselves in a place where they need quick loans to make ends meet.

In as much as the worker who patronizes the micro loan business can have some relief when their loans come through, the continuous refusal of the firm to increase salaries may cause for one in such a situation to seek more loans to remain afloat.

Another set of people for this type of business are those seeking to start new businesses. Usually securing initial capital for business might prove difficult due to the rigorous work it takes for entrepreneurs to convince investors for their money.

If a startup desires loans from a Micro Cash loan business, he doesn’t have to go through the stress of writing a proposal and defending it.

He simply applies for a loan like every other person, to pay interest on the principal. The Micro Cash loan business owner does not have to be concerned as to whether the business does well or not, as long as he gets the money back with the agreed interests.

Owners are also excellent prospects for the micro cash loaning business, from time to time depending on how their own businesses go, they will need some type of quick loan to secure a deal or business opportunity. Small businesses looking to expand their market size or re-brand may need such services too.

3. Decide Which Niche to Concentrate On

It is quite challenging to identify ones niche in an industry like this but certain practices can cause a particular micro cash loan business to stand out, beginning from a convenient interest rate to manageable repayment duration, to the use of the internet and online platforms to access loans.

Exciting promotional packages and give away to loyal customers may also serve as distinct practice for your own business. This will help develop a particular type of mindset in the customers, making them feel like there is more to your business than just the loan services.

The Level of Competition in the Industry

The Level of competition in the Micro Cash loan Business in South Africa is high due to the involvement of bigger institutions providing similar services to consumers across the country. Most of these financial institutions have been in the field for years and have fine-tuned their service delivery to excellence. One would have to prepare him/herself for strong competition when entering this field.

However location does not affect the competitiveness of the business as most loans can be accessed through online and digital platforms. So it doesn’t really matter where the Micro Cash Loan business is located, consumers can access their services with their mobile devices.

4. Know Your Major Competitors in the Industry

Usually, every industry has brands that have made a positive mark on consumers either by a unique approach to service delivery, customer retention or even by simply being in the industry the longest. Some of these attributes resonate positively with consumers and further facilitates committed patronage. Below are therefore some of the leading micro finance business or brands in the South Africa;

• Micro Finance South Africa
• African Bank
• Marang Financial Services
• Small Enterprise Foundation
• Free Spirit Cash Loans

Economic Analysis

When it comes to this kind of business where you literally handle other people’s money, you ought to have done your research about the market, the business and the various challenges that comes with it.

If you are an aspiring entrepreneur, you may learn the ropes as you go, but to say the least, the Micro Financing Business is not for beginners. It is for those who have been in the financial business for a while and have come to understand the ropes, language and system of the entire business.

Getting into this business will require a large amount of money and except one is already very wealthy, one would have to solicit funds from friends, family, colleagues and investors to be able to float such an enterprise. If you do your feasibility studies well, you will be able to make profits as you go along, but be careful of scammers and fraudulent people who seek to take advantage of rookies.

5. Decide Whether to Buy a Franchise or Start from Scratch

Starting your own micro cash loan business from scratch gives you the chance to conduct thorough market survey and feasibility studies before deciding on a location to kick off your business. And this, coupled with the experience you would have gained through the process would make starting your own micro loan business from scratch advantageous for you in the long run.

It would be more advisable for one who wants to venture into such a business to have already gained some type of experience in the micro loaning industry or other financially focused industries, as this gives you a more solid foundation to go into this venture.

However, buying an already successful franchise may definitely bring immediate returns but the cost is relatively expensive even though one may begin to see profitable results earlier.

When you choose to buy an already existing franchise, one that is successful I might add, you also buy the consumers with their goodwill. Whatever costs incurred while buying the franchise can be regained in the future if business continues to go nicely.

6. Know the Possible Threats and Challenges You Will Face

Every business no matter the industry it is situated in usually has to deal with threats and challenges and the Micro Cash Loan Business segment is no different. If you decide to venture into this line of business, one threat you will face is unfavorable governmental policies.

Although such policies police fraudsters and make it difficult for them to operate, they could sometimes be a wall of hindrance to smooth business operators and should be paid attention to. Economic downturn or bad economic environments can also pose a threat. Hardly would you find any country without its own form of economic issues.

While this could be a strong threat to kicking off this type of business, the truth still remains that other micro finance institutions are still operating in spite of the economic issues; if they can weather the storm, so can you. Other threats may include other well established organizations that are offering similar services that you intend to provide.

The major way to overcome a few of these threats is to create your own market. Look into the community, find out the areas where the competition seems to be missing the mark and improve on that. But when it comes to the economic landscape of the country, all you can do is just practice optimism and hope the situation will work out in your favour.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

There are some factors to consider before choosing a legal entity for your micro cash loan business and they include; limitation of personal liability, ease of transferability and investor’s expectations. You can start this business as a Limited Liability Company and then later on switch into a ‘C’ corporation or an ‘S’ corporation. This option is well advised if you choose to go public with your company someday.

People usually prefer a Limited Liability Company for various reasons; if not general partnership would have been the best legal entity to register your micro cash loan business especially if you are not kicking it off with huge capital. However if you intend to grow your business beyond the South African market into a more international terrain, then the Limited Liability Company is the best for you.

Limited Liability Companies are more flexible to work with, plus you will need managerial formalities like board of directors, shareholders meetings etc. to effectively direct such an entity.

8. Choose a Catchy Business Name

Creativity is at the heart of picking a name for your micro cash loan business. You may want to think of certain things when coming up with a catchy name. Maybe you want to focus on your unique edge over your competitors and use that to fuel the Business Name or you want to pay attention to the change you want to produce in your consumers.

Whatever the case may be, the name of your micro cash loan business is part of the factors to consider. If you are therefore considering what names to use when starting your own coin collection business, here are some names you should try;

• *YourName* Micro Finance Bank, LLC
• *YourName*and Sons Micro Finance Bank, LLC
• Future Micro Finance Bank, INC
• Premium Micro Finance Bank, INC
• Optimum Ventures Micro Finance Bank, LLC
• Advance Alliance Micro Finance Bank, LLC
• Bedrock Foundation Micro Finance Bank, INC
• Sailing Ways Micro Finance Bank, LLC

9. Discuss with an Agent to Know the Best Insurance Policies for You

It is important to set aside some money for the various insurance policies that are required to operate a micro cash loan business in South Africa. You may need to consult an insurance broker to find out which ones are best for your business.

As one just venturing into this field for the first time, you will need to be cautious so as not to be tricked into policies that are not relevant for your business. Some of the basic insurance policies that you should therefore consider include;

• General Insurance
• Payment protection Insurance
• Overhead expense disability Insurance
• Credit  Insurance
• Deposit Insurance
• Risk insurance
• Liability Insurance
• Health Insurance
• Lenders Mortgage Insurance
• Financial Reinsurance
• Workers Compensation
• Business owner’s policy group insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

This type of business makes it possible for one to successfully run it without the need to challenge anybody in court for illegally making use of one’s company intellectual property. Except of course certain individuals of fraudulent intentions use a company’s seal or symbol to front as another company, there is no need to file for intellectual property protection/trademark in this business.

11. Get the Necessary Professional Certification

Although one can kick off a micro cash loan business without any formal certification, getting one strongly communicates the credibility of the company. Of course all businesses must acquire their business licenses, but working towards acquiring the needed certification in your area of specialization will show competency and high skill in such a competitive market.

These are some of the certifications you can work towards getting to run your own micro cash loan business.

• Micro-Lending License
• Certificate in Microfinance Banking Operations

12. Get the Necessary Legal Documents You Need to Operate

Some of the basic legal documents that you should have in place if you intend running your own micro cash loan business in South Africa include;

• Certificate of Incorporation
• Operating Agreements
• Business License and Certification/Micro Finance Banking License
• Business Plan
• Insurance Policy
• Employment Agreement
• Operating Agreement for LLCs
• Employer Identification Number (EIN)
• Consulting contract documents
• Online Terms of Use
• Online Privacy Policy Documents
• Company Bylaws
• Memorandum of Understanding

13. Raise the Needed Startup Capital

Part of what will consume large amounts of money is leasing a standard office in a good business environment, equipping the office, paying the employees, and of course acquiring the funds to invest with. Apart from all these, starting a micro cash loan business is very cost effective.

Of course having a bankable business plan will help secure investments from banks and your friends. So pay attention to writing a winning business plan with all the I’s dotted and all the T’s crossed. Some of the financing options you can explore when seeking for start-up capital for your micro cash loan business include;

• Raising money from your personal savings and sale of stock
• Sales of personal properties
• Sell shares to interested investors
• Getting soft loan from your family members and friends
• Applying for loan from the bank
• Getting the required capital from private investors and business partners
• Market your ideas for business grants and seed funding from angel investors and donor organizations

14. Choose a Suitable Location for your Business

In as much as a lot of the work of a micro cash loan business can be done digitally, a physical space is needed as in any other business to meet with clients. It is important to do proper feasibility study and market survey of the location before choosing to set up your office there.

See how other businesses fare in that location, also if a business similar to yours just closed shop there, you may need to find out why.

Some of the things you may want to pay attention to about your physical space is its accessibility to both people and vehicles. It would even be more advantageous to you if the area is a business district, where lots of people pass through. This alone can stand as a marketing venue to those who may just be passing by and chose to stop in for a loan.

These are some of the key factors that you should consider before choosing a location for your micro cash loan business;

• The local laws and regulations in the community/state
• The demography of the location
• The number of micro cash loan businesses in the location
• The demand for the services of micro cash loan businesses
• The purchasing power and business activities in the location
• Accessibility and road network of the location
• Traffic, Parking and Security

15. Hire Employees for your Technical and Manpower Needs

You will definitely need computers, internet facility, telephone, fax machine and office furniture such as chairs, tables and shelves; and some of these items can be gotten fairly used. If you have secured enough money to run this kind of business then you can also lease a facility for your office.

There is no special technological equipment needed to run this type of business except the usual financial software, social media management applications, micro financing software customized to your business etc.

You would require at least 10-20 key staff to effectively run this medium scale enterprise. If you do not have the funding to hire trained professionals for your business due to the fact that you are just starting, you may choose to work with financial consultants and experts that will operate as freelancers.

However before making the decision to hire people, you must consider your own finances, but on average you would need to hire a Chief Executive Officer or President, you can also occupy this role if you wish, a Business Development Executive or Marketing Executive, Loan Officers, Debt Collectors, Customer Service Officer, Admin, Human Resource Manager, Head of Operations, Risk Manager, Operation Staff.

The Service Delivery Process of the Business

A Micro Cash loan Business may choose to utilize any business process and structure that guarantees them excellent return on investment, flexibility and efficiency. Some of the service processes discussed in this particular segment is not cast in stone.

One of the major differences between a micro cash loan business and other financial institutions is that while most banks have a limit to the amount they can charge as interest, the Usury Act Exempts the micro cash loan business from having a limit on its interest rates.

However, a micro cash loan business can choose to operate in the very same way other banks operate. People can invest with them and they pay them interest, while lending out the money to those who ask for loans and charge interest on the loans.

In as much as the Micro Cash Loan Business operates like a normal bank, it needs a strong business profile before it can begin to source for working capital.

16. Write a Marketing Plan Packed with ideas & Strategies

People will only invest in your business if they know they will get good returns on their investment. You would have to prove yourself again and again before pulling in the right kind of investors to give you the much needed liquid cash or working capital.

Aside from your qualifications and experience, a convincing personal and company profile will go a long way in winning investors when putting together your marketing plans and strategies for your micro cash loan business. Clearly stating what you have accomplished in the past as it relates to the financial services industry will help increase your chances in the field.

Please have it in mind that when looking for funds from banks and other financial institutions you will be called upon to defend your proposal, a good presentation skill will be most advantageous in such scenarios. Below are some platforms you can use to market your micro cash loan business.

• Advertise your business in relevant financial magazines, radio and TV Stations
• Introduce your business by sending introductory letters alongside your brochure to all the corporate organizations, households, startups, small and medium scale businesses etc.
• List your business in local directories
• List your business in yellow pages
• Attend international micro finance and financial services expos, seminars and business fairs
• Engage the services of marketing executives and business developers to carry out direct marketing
• Utilize the internet to promote your business
• Create different packages for different categories of clients in order to be more specific in meeting their needs

17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

In promoting your brand and corporate identity you would have to leverage on the print, electronic and social media platforms.

In fact, it is more effective and wide reaching to use social media platforms to promote your business. Promoting your business should be considered paramount; hence one should be ready to invest a considerable amount of money in doing just that. Below are the platforms you can leverage on to boost your brand and advertise your business.

• Ensure that you position your banners and billboards in strategic positions in your city
• Brand all your official cars
• Ensure that all your staff members and management wear your branded items at regular intervals
• Advertise your business on your website; develop strategies that will pull traffic your way.
• Use direct approach by calling up households, start-ups, small and medium scale businesses and the likes, and informing them of what you do.
• Share Fliers and handbills around the target areas where you have deduced that your business will do well.
• Encourage the use of word of mouth publicity among your loyal consumers
• Maximize the advertising potentials of the internet.

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How to Get on Shark Tank and Launch Your Business from Idea to Reality

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Since 2009, American television audiences have watched ambitious entrepreneurs take a lonely stage in front of a panel of wealthy would-be investor “sharks” to pitch their business idea in hopes of an investment deal.

Wildly successful pitches have helped launch some small businesses into international sales generators, like Scrub Daddy —maker of smiley-faced kitchen sponges.

The hit ABC show Shark Tank offers these ambitious small-business owners a chance at their dreams of success. Each episode features several pitches, chosen from among thousands of applicants. But only a few conclude with a shark taking the bite—and a significant portion of deals actually fall through after the show airs.

So is the whole process worth it? We talked to several Shark Tank alum, and the resounding answer is yes .

If you’re an aspiring entrepreneur with your own big idea, we’ve got the lowdown on what it takes to get on Shark Tank and how to make your pitch a success. The good news? Even if you don’t make it on the show—or you do but don’t get a deal—the experience can boost your brand and your sales revenue.

Tips for getting on Shark Tank

There’s no magic bullet for clinching a successful Shark Tank effort. But our research and conversations with folks who’ve experienced the show uncovered a few steps that could improve your chances.

5 steps to get on Shark Tank

• Develop the right business idea
• Create an engaging video
• Be patient and stick with the process
• Practice for your big moment
• Nail your pitch

1: Develop the right business idea

Easier said than done, right? Well, if you’re considering applying for Shark Tank, you already have a brilliant idea you think customers would want. The trick is convincing the show’s producers that it’s brilliant too.

Fortunately, the show has featured pitches from a wide range of products and services. From odor-reducing sticks for kids’ athletic gloves to an online ice cream gift delivery service , Shark Tank chooses entrepreneurs with diverse backgrounds and ideas to have their shot at making a deal.

To improve your odds with producers, make sure you have the credibility and business history to back up any claims you make. And show your receipts. As much as possible, secure patents, set up a website, shoot photography, collect customer testimonials and insights, conduct market research, and document any sale or presale information that you can—before submitting an application.

Once you submit your application—whether by email or at an in-person open casting —prepare to answer multiple questions from producers about your business plan and product or service.

2: Create an engaging video

At some point during the application process, you’ll need to submit a video, usually 10 minutes long, featuring you and your business idea. The video is crucial to the process because it’s the first chance (unless you attend an open casting) that show producers have to see your personality, energy, passion, and style.

You don’t have to produce an Oscar-worthy piece of film. But the video should be engaging and TV-worthy. Be yourself and show your personality. Talk about the “big story” and the reasons why you created your business idea in the first place.

Use your video to say precisely what you want. What do you need that you could only accomplish with investment from the sharks? Would help with branding and marketing launch your business to the next level? What do you expect your company to do with investment dollars? Don’t be afraid to talk about the weak spots in your business—that’s why you’re asking for help!

Also, find the drama. Talk about what going on the show and making a deal with a shark would mean to you, not just your business. Share your entrepreneurial dreams. You don’t need to be overly sentimental, but do make it personal.

By signing up I agree to the Terms of Use and Privacy Policy .

3: Be patient and stick with the process

The Shark Tank application process can be a long one. The alums we spoke to often went through several rounds of interviews, paperwork, and videos. Some entrepreneurs waited months before they got the call to hop on a plane and take the plunge into the tank.

Staying committed to the audition process is essential. Even if producers ask you the same questions or you complete the same forms over and over, the producers will notice and appreciate those who stick with the process. You want to stay on their minds and in their inboxes because you never know when you might get your chance.

4. Once you’re chosen: Practice for your big moment

A  Shark Tank  producer has just called: you’re in! Now what?

After screaming at the top of your lungs in excitement, it’s time to get to work on your final pitch.

We’re not sure what the average wait time is between getting accepted for the show and filming your pitch, but it could be up to two weeks. Despite what we imagine is an excruciating waiting period,  don’t tell anyone .

Shark Tank  requires participants to sign a nondisclosure agreement, which means you can’t say much, except to the producers, until your show airs. The good news is that you can use the silent time to prepare for your big moment.

Prepare your products, pitch props, marketing materials, and financial documents. Then practice, practice, practice . Make sure you know your stuff, from your personal story to your financial forecasts. Practice recalling the facts while staying comfortable and natural. Film yourself and watch for potential pitfalls.

Browse hundreds of loan options, custom-tailored to your business and budget needs, from a single, simple platform.

5. Nail your pitch

If you’ve watched any episode of Shark Tank , you’ve probably guessed what anyone who’s appeared on the show could likely tell you: the experience is emotional, exhilarating, and nerve-wracking.

But don’t worry too much. You know your business, you’ve done your homework, and you’re ready to make a deal.

Just like with your application video, make sure you show your passion and your personality. The sharks want to make a good deal, it’s true, but they also want to make good TV. Remember to find the drama in your story and connect it to your business goals.

What to avoid in your Shark Tank pitch

Set your boundaries but prepare for flexibility. You should have a specific investment structure in mind, but don’t shoot down an offer just because it isn’t exactly the number or investor you imagined.

Don’t get too lost in the numbers. Focus on the big picture—what your idea means for you, your business, and the world—and imagine future success.

Also, don’t get intimidated or starstruck. The sharks are famous and influential business people, but they’re also humans just like you. Try to relate to them as you would any other potential business partner.

What if you don’t make a deal?

Even if you follow every word of advice and have the perfect product, you may not strike a Shark Tank deal.

The show’s producers and investors have their own agendas and budgets in mind. And you may just be unlucky.

However, not landing a deal on the show doesn’t mean your business idea is doomed. Plenty of Shark Tank “losers” have blossomed into wildly successful businesses. The experience, exposure, and practice pitching to investors can boost your entrepreneurial spirit—and market share.

Plus, even if the sharks pass on your idea, there’s a chance you’ll end up with a deal of your own from an investor who liked your Shark Tank pitch.

Ultimately, if you’ve developed a great business idea, it’s worth giving Shark Tank a shot.

Lendio matches your business and budget needs to hundreds of uniquely targeted lenders through a single, simple platform.

How to finance your business without Shark Tank

Of course, going on national television isn’t the only way to fund your small-business dreams. From microloans to crowdfunding, you have plenty of choices for securing capital to fuel your company.

We recommend Lendio, an easy-to-use platform that can match your small business to lenders offering loans with affordable rates.

You should also check out our picks for the best small business loans . And if you’re just starting out, learn what it takes to start a small business .

Whether your business jumps into the Shark Tank or not, you can find the help you need to succeed.

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Quotations from third-party sources have been edited and condensed for clarity.

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Do I get a refund if I paid off my HECS last year? How do I get the payment?

Nicole from Sydney was out with friends when she found out the federal government had made changes to the way HECS or HELP loans were indexed.

She was shocked, and not in a good way.

"My gut dropped because I'd just paid off $36,000."

Nicole's student debt was affecting her ability to buy her first home.

"The difference that my having a HECS debt made to my borrowing power was close to $100,000. Obviously, with house prices the way that they are at the moment, not having that extra $100,000 of borrowing capacity was the difference between me being able to buy a property and not being able to buy a property," Nicole explained.

So, she decided to pay the debt off, using the savings she'd earmarked for her home deposit.

That payment went through on May 2, just days before the federal government announced it would tie indexation to either CPI or the wage price index (WPI), whichever was lower, and backdate the change to last year.

The change would see indexation for the previous year slashed from 7.1 per cent, to 3.2 per cent.

The tax office will apply credits to current and former students' loans to reflect the lower rate.

Paying WPI instead of CPI on last year's debt would have saved Nicole around $1,600. But paying it off in a lump sum means she has no tax office debt to credit.

She got in touch with Hack to find out if she'll get any of that money back.

Do I get backpay if paid my HECS off last year?

In a word, yes.

We asked the office of Federal Education Minister Jason Clare for a bit more detail.

"Anyone who paid off their HELP loan during the year will receive an indexation credit once legislation has passed and the Australian Taxation Office (ATO) has processed the indexation credit," a spokesperson for the minister said.

"Individuals who have fully paid their HELP loan may receive their indexation credit as a cash refund, if they have no other tax liability."

In other words, if you don't owe the tax office any money this year, you could be getting a nice tax return.

How do I get the credit on my loan?

The 'credit' — which is the difference between the amount of money you paid when the loan was calculated under CPI, versus what it is now under WPI, will be applied by the tax office automatically.

Essentially, it'll be used to draw down your overall loan.

But if you don't have a loan because you paid it off, like Nicole, you could get it back in the form of a return when you lodge your tax this year.

Retrospective changes 'frustrating'

It's important to note that only people who were subject to last year's 7.1 per cent indexation are eligible for a credit.

Thomas from Melbourne sought advice from his accountant before deciding to raid his savings and pay off a whopping $45,000 in debt in May last year – weeks before the 7.1 per cent indexation was applied.

"I paid off prior to the 7.1 per cent indexation being applied to avoid incurring an extra approximately $3,500 being applied to my HECS debt," Thomas told Hack.

"However, if it was known that the indexation was to be changed to be the lower of CPI or WPI, that would've informed my decision and I would not have voluntarily repaid, instead, retaining the sum to put towards a house deposit."

Thomas acknowledges that the changes will be positive for a lot of people but says it's "frustrating" that the government applied the changes retrospectively.

"How can young people best plan, financially, for the future, when the government moves the goal posts?"

Just under 3 million Australians have a HECS or HELP debt, and the federal government says lowering the rate of indexation will cost the federal budget around $3 billion in revenue foregone.

HECS and HELP indexation is applied annually, every June – and the effect of its addition is to bump up the amount owed, in line with inflation.

The 7.1 per cent rise last year, based on CPI — which the government, under the change, is now reversing – was the highest hike since 1990.

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This Shark Tank Winner Has A $1 Billion Plan To Replace Toilet Paper

Dude wipes’ potty-mouthed founders have already grabbed 1% of the $11 billion u.s. toilet paper market. now the mark cuban-backed startup is aiming to swipe up to 10%., by jemima mcevoy , forbes staff.

S ean Riley sits in the corner of the “Dump Room,” the actual name of his company’s conference room on the sixth floor of a modest multi-tenant office building in Chicago’s West Loop. Dressed in a green tie dye shirt and relaxed jeans, Riley, the 39-year-old cofounder and CEO of Dude Products (or as he calls himself, “Chief Dude Officer”), points out the window to a red brick behemoth across the street. “You see that building right there, that whole city block. That’s all Kimberly Clark, and that’s just their Chicago office,” he says incredulously. Kimberly Clark owns Cottonelle, one of Dude’s key competitors and the $20 billion (2023 sales) consumer goods giant set up shop across the street in 2021, just a few months after Dude moved in. “Where are the binoculars?” quips cofounder Ryan Meegan, Dude’s chief marketing officer, from Riley’s side.

Daniel Brown for Forbes

He’s only half joking. Since starting Dude Products in 2011, Riley, Meegan and a third cofounder, Jeff Klimkowski, childhood friends from the Chicago suburbs, have closely studied the trail left behind by “Big Toilet Paper” leaders like Kimberly Clark and Procter & Gamble – everything from the design of their newest rolls to their latest ad campaigns – and have done, well, the exact opposite. Where Charmin has friendly looking bears and Angel Soft, a cherubic baby, Dude Wipes has lewd emojis and potty puns. Toilet paper packaging is white; Dude sells its extra-large wipes, in flavors like “Mint Chill” and “Shea Butter Smooth,” in jet black packaging. (It costs $4.99 for a pack of 48.) “Those guys wouldn’t even use the word butt until like two years ago,” says Riley of his competitors.

They’ve foregone traditional marketing for viral stunts, starting with their 2015 appearance on Season 7 of the hit business show “Shark Tank,” where they won over billionaire Mark Cuban by telling him his “ass hates him” for using dry toilet paper. Cuban cut a $300,000 check for 25% of the business, still the only money they’ve raised to date. For this year’s Super Bowl, Dude bought multiple giant billboards overlooking the Las Vegas strip which it populated with potty jokes personalized to singer Taylor Swift (“It’s me. Hi. I’m the solution. It’s me. Not TP.”) and her boyfriend, Travis Kelce, a star of the Super Bowl winning Kansas City Chiefs (“We love a clean tight end, too.”).

It’s not just the foul humor that’s paying off. Dude’s founders have been very conservative in how they’ve grown their business. Until 2016, Riley was the only full-time employee; the other cofounders kept their day jobs to fund the business while Riley himself drove Ubers and waited tables for extra cash. There are now just 21 employees as Dude outsources all its manufacturing to the same Arkansas-based facility used by its competitors. They’ve forgone funding opportunities and scrapped diversification plans — including the launch of Dude-themed body washes and deodorants, which they tried briefly pre-Covid – in favor of organic growth with a single-minded focus on just one thing: wet wipes.

Now, the results are showing. One of the most successful businesses in Shark Tank history, Dude Products rolled up $110 million in revenue last year, from $70 million in 2022. The company, which has been profitable since 2016, now makes up 1% of the $11 billion toilet paper industry. The founders predict Dude will do $500 million in annual sales within five years and ultimately grow into a $1 billion (sales) brand. “We think that’s all pretty achievable,” says Riley. For now, it has some catching up to do to reach category leaders but Dude’s products are now available in more than 20,000 stores across the U.S., including the toilet paper aisles of Walmart, Target and Kroger. Coming next: Sam’s Club and Costco, where the wipes are currently being tested online and in Alaska.

Dude's founders put together their Super Bowl ad in a matter of days after getting a tip about open billboard space on the front of Resorts World overlooking the Las Vegas strip. "It was just vintage stunt Dude Wipes, which everyone has come to expect from us," says Meegan.

“I think we were absolutely insane to go from $0 to $100 million. So now when you’re telling me do I think it’s difficult to go from $100 million to $500 million? No, just given all that we’ve come from. Based on the new distribution alone, we’ll get to $500 million,” says Klimkowski. “Really the question mark here is to get from $500 million to $1 billion and that all has to do with moving the needle on household penetration, which again, I feel very confident.”

Surprisingly it’s not just men enjoying the product. The company claims about 50% of its users are women, choosing the brand over traditional toilet paper because it “cleans better.”

“No-one else is doing anything like it,” says Cuban, whose son orders the wipes. The billionaire says he mooches off his kid and enjoys the “regular” (unscented) wipes. “They created a culture and community around the product that is fun,” adds the billionaire, who talks regularly with the founders about strategy. “Someone sh-ts their pants in public and they talk about it.”

I t’s a simple and cheap product built around a fairly radical concept. “Toilet paper doesn’t fully get the job done,” argues Meegan, who prior to Dude, worked in sales and marketing for his dad’s business, a manufacturer of the luxury portable restrooms you find at golf tournaments or other high-end events. Meegan calls it ironic that he ended up in the toilet industry too, though watching his dad build a business from the ground up taught him the ropes of starting something from scratch.

The cofounders say they stumbled onto the idea when they moved into their first apartment in Chicago. They graduated from different colleges but stayed in contact and were all working nine-to-five jobs in the city – Riley in sales for a construction tech firm, Klimkowski as an investment banker. (Their fourth cofounder, Brian Wilkin, left in 2018 to pursue other ventures, according to Riley; Wilkin did not respond to an interview request from Forbes .) That’s when Riley began stocking their communal bathroom with baby wipes. The habit caught on quickly among the roommates and their friends, which is when they realized they might be onto something.

After sketching up the prototype (Riley still keeps the original, a white cardboard box with “Dude Wipes” penciled on the side, in his office), they found their manufacturer by researching where other flushable wipes brands made their products. They pooled together $30,000 of their savings and spent $25,000 on buying the wipes, leaving them with $5,000. The result, explains Riley: “We didn’t have any money really for marketing but we had product.” They began handing out wipes for free to anyone who would take them, including at music festivals (they paid $1,500 for a booth at a local electronic music festival) and on college campuses (their first big order was selling $400 worth of wipes to a frat house at Illinois State University). This a tactic the company still uses to this day – Dude says its products will be sampled to “hundreds of thousands of students” at freshmen orientations this year via a partnership with Amazon. They also found a surprising partner in subscription boxes, like Mystery Tackle Box, which were always looking for new fillers.

Among Dude's surprising fans is musician John Mayer, who sent the company a message on Instagram last year asking them to release single packs with two wipes instead of one. The “two wiper” will be released later this year.

In 2013, Dude was doing just $20,000 in sales when the founders started approaching major retailers, hiring a broker in Cincinnati to help secure the meetings. Most laughed them out of the room until they met with Kevin Darcy, the head of toilet paper at Kroger, in 2014. By this point, Dude’s sales had jumped to $225,000, thanks in large part to their success on Amazon, where they were steadily racking up repeat customers. “He was like this is early but you know what, I like it. I’m in toilet paper. There's not anything cool. There’s not anything new. I’m going to give you a shot,” Riley recalls. (Darcy declined an interview due to Kroger’s press policy.) In 2015, Dude signed a $2 million deal to stock its wipes in the toilet paper aisle of 2,000 Kroger stores.

That same year, they finally got a “yes” from Shark Tank’s producers after two previous attempts to get on the show. The effect was almost immediate: sales doubled to $3 million in 2016, up ten-fold from 2015 (thanks in part to the Kroger deal also). They were able to leverage the momentum from the show for a trial in 1,500 Walmart stores in 2018, which went so well that Dude secured a permanent position in Walmart’s toilet paper aisle, or as Riley calls it, the “Super Bowl” of toilet paper. “They had identified opportunities to serve the customer in a different way that others weren’t,” says Will Loan, the Walmart buying manager who brought in the wipes, citing the male-focused marketing, larger wipe size and packaging. He adds: “They were willing to talk the customer about something everyone experiences (bowel movements) but no other brand was willing to do at that time.” Today, sales in Walmart stores and on Walmart.com make up about 15% of Dude’s total revenue, with retail comprising about half of Dude’s overall sales. Its biggest channel is Amazon, which makes up 38% of revenues.

T hings were already rolling for “the Dudes” when COVID struck. As toilet paper aisles across the country emptied, more and more desperate shoppers began searching up alternatives and stumbling upon Dude Wipes. From there an interesting trend began to emerge: 75% of customers who bought wet wipes for the first time during the pandemic went back to buy the products again, according to Dude’s own studies of consumer data. The overall category has grown in size by 35% since 2020, compared to 5% growth in dry toilet paper during the same time period, data from Nielsen analytics shows. Part of that is because of the sheer size of the dry toilet paper industry: $9.9 billion in sales in 2020 versus $530 million for wet toilet paper. Dude made up more than 40% of this category growth.

This gave the founders an idea. Instead of existing “adjacent” to toilet paper as was their strategy previously, could Dude Wipes directly compete with it? The company commissioned studies looking at how consumers reacted to replacing dry toilet paper with wet and found 95% of toilet paper users preferred their experience with wipes. They put in place a plan. With more money to spend on marketing (they’re doubling last year’s $15 million budget), at least 5,000 new retail locations on the horizon and a larger pack size soon to be released (like with toilet paper, they say their customers want to buy in bulk), Dude is aiming to lead a dramatic expansion of the category. The founders project they will surpass $160 million in revenue by the end of this year and $500 million by 2029.“We’re on the disruption toilet paper path, like hey can we move everyone over to this solution?” says Riley.

To that end, the Dudes in 2022 hired as a consultant Pete Carter, a 40 plus year marketing director from Procter & Gamble who led the transformative campaigns for products like Tide Pods and Swiffer. Carter, who calls himself “the Old Dude,” is guiding what he describes as the company’s “mass media” campaign. Up until recently, most of Dude’s marketing was through social media and word of mouth. Now, they’re investing heavily on a national advertising blitz, including a TV commercial that will play across the country through December (they first ran it in select markets during the Super Bowl), radio spots and billboards. They also sponsored a NASCAR race, “The Dude Wipes 250,” at the Martinsville Speedway track in Virginia in April. Along with more traditional ads, Dude is focused on “behavior change advertising” aimed at showing consumers there is an alternative to toilet paper. According to Carter, a test run the company did last year in several markets yielded “double digit” growth in retail. “And that’s on top of a business that was already growing double digits.”

Dude sponsored Nascar driver Anthony Alfredo, who placed #5 in the 2024 Dude Wipes 250 in April.

Noting these early results and the “runway” due to the current “low awareness” of the brand, Carter views the Dudes’ goal of swiping a significant portion of toilet paper users as very achievable. He likens it to the challenge faced by Swiffer: “We were up against 100 year old brooms and mops and old technology like that and what we found is people still have a broom in their house but they’re using swiffer more often,” says Carter. “As that grows and they get more comfortable with it, people will change their habit.”

Burt Flickinger, a retail consultant who works with Procter & Gamble, Kimberly and Clark and other flushable wipes makers, is less convinced. He calls Dude’s plan for domination “overly ambitious” (the toilet paper market has been around for about 1,500 years, after all). But he does see plenty of opportunity to expand the category by being “complementary” to toilet paper. “With truckers, people doing more long distance traveling, hiking, camping, etc., Dude could very well be the primary or sole consideration.”

Cuban’s take: “It’s not about changing habits but about filling a need that is already there,” the billionaire says.

One factor that could help: convincing consumers it’s not any worse for the environment and maybe it’s even better. To help educate consumers that their wipes are flushable and biodegrable, the founders are lobbying for the passage of the Wippes Act, which they helped promote and is currently moving through Congress. The act, if passed, would promote clear labeling distinguishing between which ones can and cannot be flushed.

There is of course the threat that Kimberly & Clark and other giants move to stamp out Dude’s success with their own multi-billion dollar marketing campaigns. As of now, flushable wipes “are a pimple on the butt of the toilet paper behemoths,” says Carter, explaining: “Nobody is putting a lot of effort into it because there’s not a lot of technology they can throw at it to capture a big market.” But that could change, especially as Dude gains ground on Cottonelle. That’s why it’s important for Dude to act now and get its name out there as much as possible, says Flickinger.

The brand is Dude’s best defense, Riley agrees. “That’s how you compete with a Goliath is being completely differentiated and doing things they can’t do,” he says. “We can never compete with their capital and their people. But they can’t compete with our spirit and our creativity, how fast we move and the things we say. The Dudeness is the magic.”

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China's BYD just unleashed a hybrid pickup truck that has no rival in America — see the Shark

• China's BYD Auto launched its all-new Shark plug-in hybrid pickup truck in Mexico on Tuesday.
• The BYD Shark's hybrid drive system puts out 430 horsepower and has 62 miles of all-electric range.
• The Shark starts at $54,000 in Mexico but is not for sale in the US.

BYD introduced its new Shark plug-in hybrid pickup truck in Mexico on Tuesday. It's the company's first truck and the first product launched outside its home market, China.

Mexico is growing in importance for BYD's global strategy as it aims to gain a foothold in North America — even as the company has made clear in recent months that it does not plan to enter the US market any time soon.

As a result, the Shark will not be available in the US but will go on sale in Mexico with a starting price of roughly $54,000 USD, or 899,980 pesos.

Therefore, the midsize Shark hybrid will be aimed squarely at major global players like the Toyota Hilux and Nissan Navarra.

In the US, the BYD Shark would have competed against midsize pickup stalwarts like the Toyota Tacoma , Chevrolet Colorado, Nissan Frontier, and Ford Ranger.

However, there are no plug-in hybrid midsize pickup trucks on sale in the US. The Tacoma does offer a hybrid but does not have the ability to be plugged in.

The Shark is built on BYD's Super Hybrid Off-road Platform.

The BYD Sharks' power comes from a longitudinally mounted 1.5-liter, turbocharged four-cylinder engine and two electric drive motors. Together, they produce a total system output of 430hp.

According to BYD, the Shark can make the run from 0-62 mph in just 5.7 seconds

As a result of the hybrid system, the Shark does not have a traditional mechanical all-wheel-drive system.

Instead, it sends power to the rear axle via an electric drive motor.

The Shark comes with a 29.6 kWh battery pack.

According to BYD, the Shark has an all-electric range of 62 miles. The company also claims the pickup has a maximum combined range of 522 miles with the battery fully charged and a full tank of gas.

According to BYD, the Shark can tow up to 2,500 kg or 5,512 lbs.

Don't expect to do much towing with just the battery, though.

Aesthetically, the Shark's aggressive looks are the work of BYD's design team led by Wolfgang Egger.

According to BYD, Egger, the former chief designer at Audi and Alfa Romeo, sought inspiration from the aquatic predator for which the truck is named. In fact, the front grille was inspired by the open mouth of a shark.

At 215 inches in length, the Shark is a few inches longer than the Ford Ranger SuperCrew and the standard-wheelbase Nissan Frontier. However, it's about a foot shorter than the extended-length versions of the Frontier and the long-bed Toyota Tacoma.

Inside, the Shark's cabin is highlighted by a head-up display, a 10.25 LCD digital instrument display, and an impressive 12.8-inch central infotainment screen.

The 12.8-inch screen can change orientation from portrait and landscape. It's also equipped with Apple CarPlay and Android Auto as well as built-in apps for navigation, karaoke and music streaming.

The Shark is also equipped with a 540-degree panoramic view camera.

BYD's 540-degree panoramic camera system is a 360-degree camera coupled with a 180-degree undercarriage view camera. The undercarriage camera is designed to help drivers get a better view of the terrain while offroading.

The Shark comes with a suite of advanced safety features, including adaptive cruise control, lane keep assist, and automatic emergency braking.

Like Tesla's Cybertruck, the Shark's features can be controlled via smartphone which can also serve as a key.

Tesla has long pioneered the use of its mobile app as an NFC key for vehicles.

The Shark's hybrid system can be used to power campsites or worksites.

Most electric trucks these days are rife with electrical outlets for the job site or campsite.

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Mark Cuban: 4 of His Favorite Investments on Shark Tank

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After 13 years on Shark Tank, billionaire Mark Cuban has announced that he plans to leave the famous ABC reality program. During his time on the show, Cuban invested in 85 companies, with his largest investment being Ten Thirty One Productions at $2 million. 

Cuban is an outstanding entrepreneur that many look to for advice. Let’s dive deeper into some of his most successful investments from Shark Tank.

1. Tower Paddle Boards

One of Cuban’s notable investments is Tower Paddle Boards — a unique company that specializes in inflatable paddle boards and beach lifestyle products. Cuban’s initial investment of $150,000 in 2011 was a bold move, and it paid off as the company flourished under his guidance. With over $1 million in dividends paid out to date, Paddle Boards has provided one of the most substantial returns for Cuban compared to his other investments. Tower Paddle Boards has also carved a name for itself in the water sports industry, thanks to Cuban’s unique investment choice and his invaluable guidance. 

2. Nut’s ‘N More

Another triumph in Cuban’s investment portfolio is Nuts ‘N More, a brand that provides delicious and nutritious nut butter spreads. Cuban recognized the growing demand for healthy snack options and saw immense potential in this innovative company, telling Yahoo Finance, “I’m always looking for foods that solve my sweet tooth and are healthy. This company fit that bill perfectly.”

Backed by Cuban’s famous name in the business world, Nuts ‘N More propelled its annual sales to approximately $6 million between 2015 and 2021. Cuban’s strategic investment underscores his commitment to supporting businesses that offer both taste and health benefits, a winning combination in today’s market. 

3. Prep Expert

In 2016, Cuban invested $250,00 for a 20% equity stake in Shaan Patel’s SAT prep company, Prep Expert. Cuban believed in the immense demand for education and test preparation services and helped Prep Expert generate an impressive $5 million in annual revenue. 

4. Ten Thirty-One Productions

With a bold $2 million investment, Cuban’s involvement in Ten Thirty-One Productions deserves a special mention. Ten Thirty-One Productions, known for it live horror entertainment attractions, flourished under Cuban’s guidance, further solidifying his reputation as a savvy investor with an eye for unconventional opportunities. 

The Bottom Line

Mark Cuban’s remarkable success as a Shark Tank investor is a testament to his unique expertise and commitment to supporting visionary entrepreneurs. Through his strategic investments and mentorship, Cuban has not only transformed promising startups into industry leaders but also continues to inspire future business leaders of all ages. 

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Shark Tank Judge Namita Thapar Gives Befitting Reply To 'Dress Your Age' And ‘Don’t Post Your Cannes Pics’ Trolls

Namita thapar gives a powerful response to trolls criticising her age, business and cannes photos..

New Delhi: Namita Thapar, a judge on Shark Tank India, attended the premiere of ‘Furiosa: A Mad Max Saga’, starring Chris Hemsworth, on the second day of the Cannes Film Festival. Some internet users have been critical of Namita, telling her to dress her age and suggesting not to share photos from her Cannes 2024 appearance. The 47-year-old businesswoman took to Instagram to discuss the trolling she endured.

As she made her Cannes debut, Namita Thapar shared new pictures from Day 2 of the esteemed event. She wore a vibrant blue strapless, floor-length gown. She accessorised with a pair of ruby earrings. Her locks were neatly pulled into a bun. 

          View this post on Instagram                       A post shared by Namita Thapar (@namitathapar)

Namita sent a lengthy message with a beautiful description in which she talked about being teased for her fashion choices and how some have said that her presence on the Cannes red carpet would hurt her company's IPO.

She wrote, “You are old, 47, dress your age. You are just a nepo kid. You don’t deserve a seat on shark tank as you are always saying “I am out”. Please don’t post your Cannes pictures, your IPO is coming up, you won’t be taken seriously as a business leader.”

Namita Thapar’s Befitting Reply To Trolls

Namita’s lengthy, self-affirming comment reads: "Who defines who we are & how we need to behave? The biggest gift in life is when …with age, with some white hair & with guidance from precious mentors, you discover your true authentic self & celebrate self love. Yes, I will go all out in Cannes…yes, I will put up my pics on social media & oh yes, I will not be apologetic & defensive about who I am :)

She concluded, “Here’s to taking every stereotype ever created & squashing it with my 6 inch killer heels.”

ALSO READ: Aishwarya Rai at Cannes 2024: Netizens Love Her Makeup And Hair, Call Her Outfit 'DIY Craft Project On Bin Bag'

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