Start business as Automotive Loan Broker

Start business as Automotive Loan Broker

Business as Automotive Loan Broker

Start-up cost for Automotive Loan Broker business : Inr 3,000–Inr 10,000
Potential earnings : Inr 50,000–Inr 70,000
Typical fees : Percentage of loan amount from lender or borrower
Advertising : Classified ads in local and national newspapers and
magazines, banner ads on sites like Cars.com, and a Web
site of your own where people could prequalify for loans
online (pending your review and approval)
Qualifications : Finance background would be helpful
Equipment needed : Cell phone (with or without hands-free accessories), office
furniture, computer with Internet access and Web site
hosting capabilities, suite software, printer, fax, business
cards, letterhead, envelopes
Staff required : No
Hidden costs : Utility bills

Consider : Start Automotive detailing business


What You Do as Automotive Loan Broker :
A loan broker brings together the people who need money with the institutions that
are in the business of lending it. As an automotive loan broker you will be specializing
in a type of loan that almost every household in the country needs. Th ere are roughly
1.8 vehicles per household in the United States, and most of the new vehicles sold
are purchased through loans. Th at’s a huge potential market. How can you become a
part of this picture? You have a list of lenders, a long list. You have obtained their trust
with a well-organized business plan. You advertise for borrowers in local automotive
newspapers and Web sites like Cars.com. It is also possible that local auto dealerships
might be good referral sources for you, so it would be worth some buddy-up time
with them. Th e best part is, you don’t have to restrict yourself to your own geographical
area; much of this business can be done via Internet (through your Web site) and
by phone. It is important to have a written agreement before you begin the loan search
process, as most of your clients will use your service instead of a bank because they’ve
had trouble securing credit in a more traditional way.


What You Need as Automotive Loan Broker :
Th e borrowers will visit the lender’s offi ce, not yours. Your initial start-up costs are
your Web site, some advertising, and the equipment to support your paperwork and
communications; all of these should be under Inr10,000. Th e Web site is crucial and
should include a secure server, since your customers will be sending confi dential
information via the Internet through your site. Still, you should be able to generate
signifi cant business if you can promise decent terms. If you have true marketing savvy,
you could earn as much as Inr70,000 from all of your eff orts. In short, the potential
for success in this business is high. All you need is the ability to produce. Th e more
automated you make your business, the higher your profi t will ultimately be.


Keys to Success as Automotive Loan Broker :
Clarity on goals and expectations is vital to the professional, ethical conduct of a
loan brokering business. You make it clear to the potential borrower what expenses
are to be reimbursed, and you take a fee only as a commission on a completed loan.
Skill at bringing the two sides of the automotive transaction together can enable
you to earn a very high income once you are established. Persistence pays off here,
as it so often does in the world of small business.

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