Let’s discuss starting an open lending platform.
Now is the time to discover the world of peer-to-peer (P3P) lending.
The platform is secured with blockchain technology so you can invest in the open lending platform and engage customers.
How can you make use of this rapidly growing market?
The term “peer-to-peer” means issuing and receiving loans by individuals directly without going through the conventional financial institutions or intermediaries.
You could even view it as a loan app. The P2P software is developed by companies and intermediaries, and they’ll take their share of the income from both the borrower and creditor.
That could come in the form of fixed payments or a small percentage out of the sum of the borrower/creditor’s loan.
Here are some ideas you could use when thinking of an open lending platform for your business: student loans, start-up loans, personal loans, business loans, car loans, mortgages, commercial lending loans, bad credit loans, medical loans, and micro loans.
Your capital requirement will depend on your objectives and goals for your P2P lending business. It’s important to make sure you’ve met the following requirements before launching your P2P business:
1. Incorporation
2. Insurance Policies
3. Business License
4. Leasing a Facility (for at least a year)
5. Equipping Your Office (computers, phones, printers, furniture, etc.)
6. Launching a Website or Loan App
7. Acquiring Software
8. Marketing Budget
9. Additional Expenditure (business cards, signs, etc.)
First, you need to decide on a business registration form.
When choosing this form, take into account the following:
1. Registration as a corporation or limited liability company (LLC) will protect against creditors in case of bankruptcy.
2. Corporations impose significantly more restrictions than LLCs, including requirements for accounting and tax reporting.
They also must hold shareholder meetings at regular intervals.
3. Different forms of registration imply different tax statuses, but an LLC can choose to pay taxes as an LLC or as a corporation.
4. The corporation is obliged to distribute profits and losses according to the share of ownership of each participant.
In an LLC, distribution occurs according to the operating agreement; the terms are decided by the participants of the company.
Your second step is to register your company name.
Take into account the following:
1. The name must be free. You can check on the website of the US Patent and Trademark Office to be sure.
2. The brand name doesn’t have to match the domain name.
3. Registration rules may vary widely by state.
Next, register the platform domain.
That’s your website address and it shouldn’t be very long.
It should also be easy to read. Abbreviations are fine if they’re the abbreviated form of your brand. Keep in mind the following important
points:
1. Your domain and company name must be unique.
2. Domain registration requires money. This is usually a small amount, but can be up to $100 depending on the domain name.
3. When registering your domain, you don’t buy it outright, but rent it for a period of time.