How the firm of Money Lending and Pawning Works and How to procure an International License
Offshore Money Lending and Pawning License
How the firm of Money Lending and Pawning Works and How to procure an International License
A potentially very lucrative offshore firm is money lending and pawning. It is possible to fetch a offshore license of money lending and pawning to do firm in the country where licensed. possible annual income can be over 50% of invested capital. A well concept out firm plan with adequate keep in all firm operations can make this an ideal offshore firm for the interested investor.
Although those setting up such an offshore firm are more accustomed to obtaining loans at a bank this is not the case with large segments of society throughout the world. Many people typically make end meet in the middle of paydays by pawning vital items such as gold jewelry. This is a multibillion dollar firm worldwide.
Setting up this sort of firm will typically cost around ,000 with annual costs of around ,500. All directors, officers, and shareholders of the firm will need to furnish specific personal and financial information. However, it is possible to use noteworthy nominee services.
In setting up an offshore money lending and pawning firm it is possible and often advisable to outsource back office functions, web site setup and maintenance, and other firm functions with which the owners may be unfamiliar.
How the firm of Money Lending and Pawning Works
A firm with a money lending and pawning license will accept personal and household goods of known value in replacement for providing otherwise unsecured loans. Loans are typically in the 0 to ,000 range. Interest is ordinarily paid monthly at rates up to 4% a month (48% a year) or more. Because interest monies received can be loaned out again the possible compounded rate is above 48% a year on 4% loans. Other fees connected to the loan have the capacity to added growth the possible return on investment. Although typical interest rates can run from 4 to 6 % it is perfectly legal in some jurisdictions to payment as much as 25% on a short term loan.
A tasteless type of collateral, for otherwise unsecured loans, is gold. A money lending and pawning operation will typically hold gold, or other assets, worth twice the value of the loan. In a rising gold market the value of held collateral will often exceed the value of the loan. If the firm chooses to hold other items it must have the expertise in house to appraise on the spot, the facilities to store discrete items and the staff to sell items left for forfeit if loans are not paid. Given that much of what is left for collateral will be gold and the firm must have a fair number of cash on hand, a fetch safe will be necessary.
Common loans to employed people are payday loans. The private will often be a repeat customer. He or she will have provided proof of employment and proof that he or she had not written back checks. Use of a check as collateral can be combined with bodily collateral as well in a pawning business.
Very short term loans are typically still charged a month's worth of interest. Thus interest for just a few days may run as high as 15 to 25 % of the value of the loan. Because many borrowers will pay monthly interest payments some loans, a money lending and pawing operation will earn as much as a three fold turn on investment.
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