Over the past decade, more people have looked to money lenders for financial help. Loans, credit cards and other products are designed to help individuals cover important costs.
So long as it is paid back in full, borrowed finance can be a useful option. Providers also stand to make profit from depositor’s funds. Unsurprisingly, its various benefits attract many people to the money lending business every year.
Over the past decade, start-ups have emerged across Britain, many of which are based in this sector. To set up a company, it is imperative to adhere to legal rules — and this is especially true for aspiring money lenders.
To help, here we list the key considerations:
Products on offer
What kind of product do you want to specialise in? Is it credit cards? Perhaps loans? Whichever it is, remember that your business must always deliver impeccable service to clients.
To achieve this, you will need to stay on top of all regulations — including those related to your specific product. The Financial Conduct Authority (FCA) provides up-to-date information on all aspects of the money market.
It can be a useful source for borrowers and lenders alike. It could also enable you, as a business owner, to remain updated on the different laws that relate to your field.
As with any sector, there are general — as well as particular — regulations that industry members are required to follow. The Financial Services and Markets Act 2000 (FSMA) governs framework regulation for financial companies in the UK.
Certain European rules can also influence how financial services within the EEA (of which Britain is a part) conduct business. To ensure legal immaculacy at all times, make sure that all procedures are carried out under the correct laws. You could handle this by hiring a team of researchers. That way, you can avoid any unwanted surprises when it comes to client repayments.
You’ll also be better able to fully protect customers — and this may heighten your appeal as a provider.
Corporate social responsibility
Throughout the world, Corporate Social Responsibility (CSR) has become a major priority for enterprises. If you adhere to CSR, you can maximise safety for employees and clients, which can improve company reputation.
To guarantee an open work environment, why not invite staff to contribute to the firm’s code of conduct? This could help them to feel more supported and valued within the team.
In addition, you can strengthen community outreach through helpful services. You could deliver a free course on successful financial management, for example. You may want to incorporate branded literature and course packs into these.
Through this activity, you can showcase your team’s knowledge of financial regulations to the public and potential customers. This provides the perfect opportunity to promote the organisation, too. All in all, it creates a win-win situation.
With complete legal commitment, money lending can be a fruitful pursuit. Once you know how to protect your company, employees and — most importantly — clients, you can begin to enjoy the benefits. With full financial awareness, your business could thrive.