Maybe, you are thinking of how to make a profit on your money by lending it out. Then in today’s guide, we will provide you with the necessary information on how to start a lending business in Ghana.
The lending business is the act of allowing someone to borrow from you for items such as money, property, or any other asset that is supposed to be returned after use.
The lender puts a commission on the kind of items borrowed from him or her for a good profit.
Even though the lending business has been in existence for more than a century, there has been a great rise in the lending business in Ghana due to the undocumented nature of the business.
The lending business has always been a lucrative business in Ghana when well managed.
Types Of Lending Business In Ghana
The lending business in Ghana can be done in many forms, and they include the following:
- Money Lender (this involves lending out money to customers with an additional commission paid in return.)
- Property Lender (this involves lending out your homes or other property structures for ceremonies such as weddings, funerals, etc.)
- Other Assets Lender (this involves the lending of assets such as canopies, chairs, mattresses, etc.)
Things To Consider Before Starting Lending Business In Ghana
To be a successful player in the lending business, the following factors have to be considered before business commences,
1. Build a business plan that suits your capital for business operation
2. Register your business name under The Registrar General’s Department to gain a certificate for your business.
3. Choose the right things (money, property, or other assets) to lend out by studying your target customers
4. Choose the right locations which are easy to find and accessed by clients
5. Advertisement is a key factor for your business
How Much Does It Cost To Start Lending Business In Ghana
The start-up capital for this business varies based on the kind of lending business (money lending, property lending, or other assets lending) an investor wants to establish.
Therefore, make a good choice of lending business which have a higher marketing demand.
How Profitable Is Lending Business In Ghana
The lending business is one of the lucrative ventures anybody can think of, due to the higher demand for business products and services.
People feel more released when they don’t have to provide documents when they borrow, which has made the business more attractive with a huge customer base.
Therefore, investing in the lending business can generate an overwhelming profit of about 40 – 60%.
Best Areas To Start A Lending Business
Lending business in Ghana can be established at any corner of the nation, providing that customers know where to find you.
But in most cases, the place for running assets lending business is along busy roads where customers don’t find it difficult to transport goods from your business location to their place of use.
Property lending thrives in areas with a serene environment and easy to locate for ceremonies and other programs.
Also, money lending in Ghana can start at every corner of the country.
How To Run A Successful Lending Business In Ghana
To become one of the successful players in the business, the following have to be practiced and considered:
1. Know your target customers for business operation
2. Deal with the right customers to prevent any form of loss
3. A good customer relationship must be practiced
4. Good customer care is needed
5. Provide a vehicle for delivery when dealing in transportable assets
6. Have a good saving plan for your profit
7. Be determined and try to expand the business as time pass by
Challenges In Running A Lending Business In Ghana
The only challenge faced by lending business owners in Ghana is, the business is filled with untrusted customers who don’t return money or assets.
Benefits Of Setting Up Lending Business In Ghana
1. The financial benefit that comes with this kind of business operation is more than expected.
2. It creates a perfect space for nongovernmental workers to get a source for a loan to establish, sustain, and expand the business.
3. It has also improved upon the lives of the ordinary people of the society since what they can’t afford to buy are given to them for immediate use and return later.
This is the information we can provide on how to start a lending business in Ghana.