Before starting a lending business, you will need to obtain a license. You can’t establish a lending business without a license. Even if you manage to get a lending business going without a license, you would not have peace of mind. For running a lending business without a license would mean always being on the wrong side of the law. Furthermore, running a lending business without a license would mean that you would be confined to ‘underground’ operations. That would in turn limit your operations. It is therefore very important to make an effort, and get a license for your lending business. To get a license for this sort of business, you will need to:
- Identify the relevant licensing agencies: there are certain nations where operators of lending businesses are licensed by central banks (or the Federal Reserve). There are other nations where such operators are licensed by certain government ministries/departments: for instance, finance, treasury or trade departments/ministries. So you need to identify the relevant agency in your nation, where you are supposed to get a license for a lending business.
- Pick the necessary application forms: sometimes, these forms have to be filled in manually. In other places, the application forms are meant to be filled in online. Generally, the world is embracing online applications. So you may find yourself being referred to a portal, where you can fill in the application details. The portal in question is likely to be one that works in the same way as the Nordstrom HR portal, which is accessed through the Mynordstrom login page. With Nordstrom’s HR portal (which we have just made reference to above), employees first have to go to the Mynordstromsign in page, log in and then proceed to access their employment-related resources. You may be referred to a similar portal, to apply for a lending business license there.
- Fill in the application forms: whether you are doing it on manual forms or online, you have to fill in the required details accurately.
- Attach any other relevant documents: you may be required to attach various compliance certificates, to complete your application for a lending business license.
- Submit your application: if yours is a manual application, submission will mean taking (or mailing) the completed forms to the relevant agency’s offices. If it is an online application, submission may turn out to be just a matter of hitting a ‘submit’ button on the screen.
- Pay the necessary license fees: you may be required to pay by check, by money order, in cash or through a credit card.
- Await for the license to be processed: having submitted the application forms (and paid the requisite fees), you can only bid time as you await for the lending business license to be processed.