So, you don't have any brilliant idea
that you can turn it to a business, but you are lucky enough to have a descent
amount of money
So what would
you do? Lend it, with interests. That is LOAN
1-
You have some assets, usually
money (if another asset, you have to compensate for the maintenance and stuff,
and that would be a lease)
2-
Find people who need that
money upfront, and they are everywhere
3-
Determine the interest rate
over the specified time (enough to compensate for not having use of this money)
4-
Estimate the risk of not being
paid-back, and be prepared for such risk
N.B. it is
not that much of a risk, there are tons of precautions there that cover you
well, and that "collecting collateral" thing, meaning that you
legally have the right to collect the asset the borrower used your money to
acquire, in case he couldn't pay back
5-
Customers (borrowers) pay back
the (loan + interests) in payments, over certain amount of time
It's a pretty safe business to
do. Actually it is not a business at all. There is no effort form you to do,
you just sit there and wait for the payments (which you clearly don’t use it,
or else you wouldn't have lent it in the first place :)
No comments:
Post a Comment