A title loan is a catchy business and an excellent money making business as well. To start a title loan business, a strategic business plan is required. Please adhere to the following guidelines:
Knowledge about the business: First try to get an in depth knowledge about these types of loans and lenders activities. Get a clear idea of how these title loan businesses work in your surrounding area. Analyse their interest rates and profit rates.
Franchise or own?: Decide on whether it is better to take a franchise or willing to start a own business independently. Both has its pros and cons. Establishing the business as a franchise is easy but the commission amount to the franchise in every profit is little wary. At the same time, starting a own business, checking for place or lease a place and procedures for registering the company setting your rates, marketing your business etc., needs to be considered a lot of effort is required. But all the profit is yours.
Set the rates: This is the very essential part of the business plan. Generally it goes to 30% to 60% but it is the fact that even a small difference in the interest rates compared to your competitors makes a lot of difference. So analyse the surrounding interest rates and decide on it to attract more borrowers.
Use the technology: Market the planned or proposed title loan business online. Create a website and allow the borrower to register online and cater their needs. Further in add on to that create a mobile app, so that the online transactions will be user friendly and easy.
Competitors into collaborator: Try to maintain a good relationship with the co- competitors in your business. Try for some partnerships and collaborations with the competitors.