Welcome To SingingPig.co.uk

Hi David,

very good of you to take time ouit to give a revue of your clearly succesfulk business

one question for you, Pal, and Craig is that do you encounter hostility (or any contact) form other lenders like yourselves in you area

the only reason is that i was chatting to a property chum yesterday and mentioned this business model (potentilay investing upfriont cash pulled out form property to lend out), his family are from Stratford East London and his comments were you are likely to end up with your balls in a sling trying this business there (much like hot dogs or ice cream..)

whats your experience??

Rik

Hiya Rik,

I have been involved in this business for many years now and have never had any hostility, the opposite in fact.  I generally pass the time of day and say hi to any other collectors I meet and find them a friendly bunch.  I think this goes back to the misconception that this is loan sharking and involves heavies and baseball bats.  This couldn't be further from the truth.  The business is all about building relationships with your clients, not being intimidating and threatening,

Paul

Thanks Paul,

David A:

It is unlikely that the £50K will be withdrawn for maybe a couple of years as all collected money is lent out. Thus, for simplicity, if profits were always £1K a week and collections £1.5K then the loan book would go from £50K to £51K then £52K and so on. The extra £500 is also lend out, as not to do this would gradually reduce the loan book as loans are paid off.

Hi David,

I'm confused by how this works.  Could you explain it in more detail for me?  Sorry if I'm being slow .

mrtoca:

David A:

It is unlikely that the £50K will be withdrawn for maybe a couple of years as all collected money is lent out. Thus, for simplicity, if profits were always £1K a week and collections £1.5K then the loan book would go from £50K to £51K then £52K and so on. The extra £500 is also lend out, as not to do this would gradually reduce the loan book as loans are paid off.

Hi David,

I'm confused by how this works.  Could you explain it in more detail for me?  Sorry if I'm being slow .

Hi Mr Toca,

Using David's example above collecting 1.5k per week with profits (interest) of 1k per week.  If David continues to expand by putting all the money (both interest and repayments) back into the business then his business will continue to grow and make more and more profit each week.

If he decides the business is the size he wants to maintain it at then he would draw the 1k per week profit and only re-invest the extra £500 that is being collected (this is actually the amount that is loan repayments and not profit).  The business would then stay at 1k profit per week permanently and he would draw this out every week.

If he draws the whole 1.5k then his business will gradually (£500 per week) decline as loans are being paid off and not replaced.

The beauty if this business is you really set your own profit level.  Expand until you are happy with the weekly profit being made, then maintain at this level by only re-investing the amount collected over and above your weekly profit.

I hope that clarifies it.  If not fire back and I will try again.

Paul

Paul, I'm glad you are contributing to this thread. You could have just left us all to it! Great stuff.

Rik, I've never encountered hostility from others like me yet either. I don't think I will TBH.

All the others seem to be simply employed by bigger firms. I know this because I ask potential clients if they have other loans, and only three names ever keep cropping up. These employees won't care who I am.

David, just a thought. We have to be careful exactly how much info we divulge on here. Paul is selling manuals at a profit, and we could expose the whole business here, thereby ending this income stream for him!!

Craig

Craig:

Paul, I'm glad you are contributing to this thread. You could have just left us all to it! Great stuff.

Rik, I've never encountered hostility from others like me yet either. I don't think I will TBH.

All the others seem to be simply employed by bigger firms. I know this because I ask potential clients if they have other loans, and only three names ever keep cropping up. These employees won't care who I am.

David, just a thought. We have to be careful exactly how much info we divulge on here. Paul is selling manuals at a profit, and we could expose the whole business here, thereby ending this income stream for him!!

Craig

I'm happy to contribute Craig.  As far as divulging info, don't worry about it.  It's good to be able to share and as you know, though it's a straight forward business, there is quite a lot that it's useful to have personal guidance on, particularly in the early stages.  Also this was really set up to help out people looking for a genuine business.  The amount I've made selling manuals I could easily have made 10 times more by spending the same amount of time on my business.  That's not to say I won't at some stage decide to market this more aggressively rather than just an offer to SPers but that's something to think of for the future.

Paul

I got a phone call yesterday from the sister of a girl who's one of my clients.

She wants £100 loan.

As I have only 10 clients, an extra one represents a 10% increase in business but . . .the existing client has been with me for 3 weeks and is already 2 weeks in arrears and hard to catch. In addition, the sister lives on a different estate about two miles from my usual round.

Will I or won't I issue the loan?

Answers on a postcard to:

"Do you think I'm completely f***ing insane?" Competition, Skint Street, Skint Town, Skintshire SK1 1NT.