Borrowing money in the form of credit or a loan is part of a business after all, but as customers, why not go to the other side of the counter, so if you are interested in how to become a lender, read on.
How to become a moneylender?
A job opportunity if you have money to spare is to be a moneylender, which leads to earn money by lending money, for which there are certain conditions and requirements that we will see in the following article.
To work as a moneylender you must comply with the requirements and conditions imposed by the law of the country. So the first thing is to meet the requirements to be a moneylender with all the law.
How to work as a moneylender?
If you have money to spare and instead of investing it in a fixed-term deposit, buying shares or dollars, or putting it into a business or trade, an interesting option is to become a moneylender and, if you do well, become an entrepreneur in the field.
Are there risks of working as a moneylender?
Lending money, according to QVCredit SG, also involves certain risks beyond handling money in quantity, the risk of lending money to people who need it and who may have debts and that means not paying them back because it is a freelance job and not a company or lender.
What are the conditions to become a moneylender?
When it comes to being a lender you have to see the laws that govern the activity of the country. As the platforms that review the requirements requested in Argentina. Among the conditions to take into account:
- Pay the bills.
- Work with own and stable funds
- Negotiate with reliable people/clients
- Do not accept clients with debts
- Comply with the requested documents
- Be registered where applicable
- Be registered with AFIP if applicable
What are the functions of a moneylender?
The functions of an informal moneylender is to offer credit with their own money to third parties, in exchange for the client paying them back the money plus interest for the money lent and in an agreed amount of installments/months.
The lender may decide to lend money from their own savings to other people who need it, and may lend it to family or friends, and may even set the interest rate to be charged, based on what is established by law.
Is working as a moneylender?
Deciding to become a moneylender is legal and you must comply with the law. It is not illegal since the modality of lending between individuals is within the law. There are certain concepts to work as a pawnbroker legally:
Requirements to become a lender
- The money to be lent must be your own
- In case of being a professional lender, it must comply with legal aspects, so it is advisable to consult a lawyer.
- The money to be used for lending must be declared, in DDJJ of Profits the lender must inform which is the origin of the funds.
- The loan of the money cannot be free of charge, since AFIP may consider that they are trying to avoid paying taxes.
- The amount of the loan granted, the terms and interest to be charged must appear in a document.
As you could read being a moneylender in Argentina is easy, the hard part is raising enough money to become one.