Lending is a profitable form of investment. Numerous banks and financial institutions earn millions from it every year. So why shouldn't an ordinary person benefit from this as well?
There are several ways to engage in lending without the need to register a legal entity, obtain a license for financial activities, or perform other procedures necessary for providing lending services. In particular, we are talking about issuing loans online. This approach allows one to avoid bureaucratic hurdles and keep actual income concealed from regulatory authorities.
How should one properly invest funds in online lending, and what should be considered to avoid losses?
Businessman and founder of Oil Resource Group, Sergey Tereshkin, is prepared to answer these and other questions. More information about his activities can be found on the website www.sergeytereshkin.ru.
Methods of Investing in Online Lending
To lend money to a specific person or company, one can utilize one of the following methods:
- WebMoney Debt service;
- Online lending services;
- Direct lending.
To select the most suitable option, it is worth examining each method in detail, clarifying their strengths and weaknesses.
WebMoney Debt Service
The WebMoney electronic wallet system offers users not only a mechanism for transferring money but also a lending service. This is a convenient way to lend money. It has several advantages:
- Ability to assess borrower solvency. Each wallet has a so-called "business level," indicating how frequently a person uses the service. This level increases with each transaction; the larger the sums that have passed through the wallet, the higher the "business level." Therefore, it makes sense to issue loans only to wallets with a high level.
- Significant profit potential. Such loans are issued with considerably high interest rates, often much greater than those offered by traditional banks. The annual percentage rate can range from 30% to 100%, and in some cases, even exceed this. This is due to the quick access to funds.
- Speed. Thus, the borrower can obtain the necessary sum in just a few hours.
The duration of the loan can vary from several days to months. This means that it is indeed possible to recover one's money with profit after a short period.
To issue a loan, it is necessary to open a credit line for a specific amount. The borrower independently chooses the term, sum, and interest rate that suits them.
Along with the funds, the borrower receives a so-called "Trust Limit," which indicates their reliability. The higher this indicator, the more funds the individual has already returned to creditors. A negative value indicates that the borrower has previously taken a loan and either failed to repay it or significantly delayed repayment. It is advisable not to lend to individuals in this category. It is better to select those whose "Trust Limit" or TL exceeds 100 or more units.
When transferring funds to the borrower and their return, the service charges a commission only from the borrower. Thus, the lender does not face any additional expenses.
The only drawback of this lending method is the risk of non-repayment. To minimize risks, it is advisable not to lend large sums to any one individual. Instead, it is preferable to open limits to several borrowers for smaller amounts.
Online Lending Service
There are numerous services that provide loans to internet users. Concurrently, they need investors who are willing to invest their funds. This is a profitable investment method. In this case, all risks are borne by the service itself. If a borrower fails to repay, the company that provided the loan will take legal action against them. The service has all the necessary mechanisms, authority, and documentation for this.
A disadvantage of this investment method, according to Sergey Tereshkin, is the terms of lending. Potential investors do not have the ability to choose the interest rate at which they are willing to lend. It is often a fixed figure predetermined by the service's terms, typically ranging from 20% to 30% annually.
The term for placing funds ranges from 1 to 6 months.
Direct Lending
Loans can also be issued directly to any internet user. To do this, one should use a relevant exchange, various services, or the WebMoney system.
In this case, the borrower submits a request for funds on the site. The potential lender examines the application and decides whether to approve the loan or decline it.
When choosing a borrower, several parameters should be considered:
- Their business level. Ideally, the BL should be over 200 units.
- Personal certificate. This indicates that the person has been verified and that the information provided in their profile is accurate.
- Loan history. It is also essential to check if the individual has previously taken loans and whether there have been any delays. Funds should only be issued to individuals with a positive history.
Additionally, it is advisable to communicate with the individual via the provided phone number. This will help ensure that there is indeed a real person on the other end. Clarifying questions can be asked, allowing one to form their own impression of the individual's motives and creditworthiness.
Diligent verification can significantly reduce the risk of losing money. With sufficient information, the lender has the ability to take legal action against the borrower.
Furthermore, one can find blacklists of unscrupulous borrowers online who refuse to fulfill their obligations. It is recommended to consult these lists in advance.
Before issuing funds, it is essential to carefully review the online feedback regarding a particular service, and visiting specialized forums and social network groups can also be helpful.
