By Yoti Chola
I have started money lending business before which failed within a year due to lack of knowledge. But 2-years after that, I partnered with my mentor and registered a money lending business and it worked.
One of the biggest risks of starting
a micro lending that most people will never tell you is lending without a licence
or at least a court order.
Implications Include:
1. Once your portfolio grows big to
millions, DEC and/BoZ will definitely bounce on you for money laundering (Case
of the Southern Province SACCOs).
2. If anyone defaults and you sell their collateral if you signed a lending contract. They can instead sue you if they know the law and no court will support you as you were lending illegally.
Credit: ZEC
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