How to set up a private lending company

First, how to set up a private lending company

If the registered capital is not less than 500,000 yuan, it shall apply to the local banking regulatory bureau. If it is approved to start business, the decision-making organ shall issue a financial license and obtain a business license with the financial license.

1. According to Article 8 of the Interim Provisions on the Administration of Loan Companies, the establishment of a loan company shall meet the following conditions:

(1) The registered capital is not less than RMB 500,000.00 Yuan, which is paid-in monetary capital, and shall be fully paid by the investor at one time;

(2) Having articles of association that meet the requirements;

(3) Having senior managers with professional knowledge and professional work experience;

(4) Having staff with corresponding professional knowledge and work experience;

(5) Having the necessary organizational structure and management system;

(6) Having business premises, safety precautions and other business-related facilities that meet the requirements;

(7) Other conditions stipulated by China Banking Regulatory Commission.

2. According to Article 13 of the Interim Provisions on the Administration of Loan Companies, the application for establishing a loan company shall be accepted by the banking regulatory branch or the local city banking regulatory bureau, and the banking regulatory bureau shall review and decide. The banking regulatory bureau shall make a written decision on approval or disapproval within 4 months from the date of receipt of complete application materials or acceptance;

3. The application for the opening of a loan company shall be accepted, examined and decided by the banking regulatory branch or the local banking regulatory bureau. The banking regulatory branch or the local banking regulatory bureau shall make a decision on approval or disapproval within 2 months from the date of acceptance.

4. According to Article 15 of the Interim Provisions on the Administration of Loan Companies, a loan company and its branches that have been approved to start business shall be issued with a financial license by the decision-making organ, and shall register with the administrative department for industry and commerce with the financial license to obtain a business license.

Baidu Encyclopedia-Interim Provisions on the Administration of Loan Companies

Second, how to register a company for private lending?

You can register with the industrial and commercial bureau.

3. How do credit companies make profits? Do they just earn some interest?

The business of credit companies is actually a kind of private lending, and customers are generally small and micro enterprises that are difficult to obtain bank loans and some individuals who need short-term loans. Generally speaking, such customers have higher credit standing, less net assets, weaker cash flow and profitability, and lack of full guarantee. Therefore, the interest rate of small loan companies is relatively high, often reaching the upper limit (four times the benchmark interest rate), and with some expenses such as investigation fees and handling fees, the comprehensive cost may reach 30% or even higher.

In 2008, the China Banking Regulatory Commission issued the Guiding Opinions on Pilot Companies, and some developed areas of private economy such as Guangdong and Fujian also formulated their own management measures for small loan companies. In these documents, the maximum loan amount for a single borrower is limited to 5% of the net capital of a small loan company, and some even set an upper limit (for example, Guangdong stipulates that it shall not exceed 5 million).

In terms of capital efficiency, as far as I know, the overall rate of return of the small loan industry is acceptable, and some companies can even achieve an increase of more than 100%. However, there are many illegal operations (illegal fund-raising, etc.). ) In the small loan industry, and in the tight macroeconomic environment, the default rate will also rise, and the overall risk is higher.

The business model of each company is similar, which is to judge the repayment ability by looking at the current assets certificate of credit investigation. However, their requirements for customer credit information are not as strict as those of banks, and they can only find small loan companies that ordinary small and micro enterprises can't do. Small loan companies will generally conduct field visits to see their actual operation. Their income is mainly interest, and some of them have the shadow of large local enterprises, and they can also get financial support from banks.

Fourth, how to set up private lending companies?