Of course not. In financial business, we must use leverage. How can you borrow money with your own money?
Many cash loan companies are relatively small in scale, with a registered capital of about 6.5438+million, and many cash loan companies are often in the tens of billions. Where did they get the money?
Now they have raised a lot of money from other channels.
Because of my work, I know more about cash loan companies. In most cash loan businesses, because the amount of a single loan is very small and the term is relatively long, the capital turnover rate is particularly high. For small borrowers, not much start-up capital is needed. Under normal circumstances, cash loan business can be started with 2-3 million funds.
When the scale reaches a certain level, the simplest way for many cash loan companies to collect funds is to use P2P online loans to raise funds from small investors in the market. Then the cash loan business acts as an intermediary to handle various business expenses.
A better and bigger cash loan platform can also package credit assets, issue ABS products and raise cheaper funds from the market through asset securitization.
So it doesn't need a lot of money to do cash loan business. Even if you need money, you can use various financial instruments to raise funds from the market.
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2. Where did the loan company get the money?
Most of them come from fund-raising and bank loans.
Third, how much can a loan company earn?
Hello, loan companies can make a lot of money according to their business scale and operating conditions. If the company's business rules will be considerable. Generally speaking, loan interest income and service fee income. Interest income refers to the interest income obtained by the loan company from the borrower, deducting the service fee charged by the borrower. In addition, the loan company can also collect various value-added service fees to obtain income.
In addition, loan companies can also gain income by investing in assets, such as investing in financial instruments such as stocks and bonds, and investing in assets such as real estate. These investment gains can improve the company's profit level.
It always depends on the business scale and operating conditions of the company. If the company's business model is large, the income may be considerable.