These days everyone needs loans. I bet you can remember the last time someone asked you to borrow $10 here or $50 there. Well if you have money to lend, think on a grand-scale. Or maybe even a few grand scale, if you know what I mean?
Yes that was a joke, sorry if it was terrible. Anyhow, moving on.
There are companies that will allow you to loan money to individuals in need of loans and collect interest. Isn’t about time you got to be the bank for once? And the bright side is you never have to sit down and have face to face interviews with the borrowers.
How Does This Work?
First you’ll need to choose a lending company to work with, see below. Next, you review loans that should have been examined and given approval by the company you’re working with and choose which loan(s) you would like to fund. After funding the loan(s) of your choice, you should begin receiving monthly payments with interest from the borrowers. All payments should be processed through your company of choice’s website and their portion(usually less than 2%) is removed and the rest transferred to your account.
That’s pretty much all there is to it.
How Much Money Can I Make?
The amount you can make directly reflects how much you invest and the interest rate charged to the customer. The interest rate is based on the borrower’s credit score/report.
Is There Any Risk Involved?
Yes, I won’t lie to you and say that you can’t lose money. With almost any investment you make in life there is some risk involved. Specifically with lending money, there is a chance that a borrower can default on their loan. The higher the risk (borrowers with lower credit scores), the more interest you get.
Where Can I Get Started?
I personally recommend Lending Club. You can view a short video below to decide if you want to make the next move.