Why You Should Invest in a Lending Business

4 min readJul 22, 2019

Would you be interested to make extra cash, borrowing out some of your excess funds to individuals? If yes, then you should consider investing in a lending business; popularly known as consumer lending. The lending business is on the rise as there are platforms that are now built to provide opportunities to individuals who want to grow their finances while helping others.

In this article, I’ll give you reasons why you should invest in the lending business and also explain how you can get started today.

Ready? Let’s begin!

Investing in a lending business allows you loan money to individuals for different purposes. Before now, lending used to be an investment option only available to the banks. However, things are changing and with the rise of lending platforms like Lendsqr, people can invest in consumer loans as well.

Platforms like Lendsqr provides individuals (who want to run a lending business but do not have the capital to build the technology for themselves) with a sophisticated and easy to use digital lending technology needed to run a consumer lending business.

What makes consumer loans a really good investment choice?

Here are five reasons why it’s a good investment choice and why you invest in it:

  1. Investing in consumer loans earns you more interest than your savings account

Keeping your savings in the house is assumed as unwise. Some people advise that you keep your savings in the bank because of the little interest growth.

The advent of lending platforms makes this nugget of financial wisdom barely applicable. The reality is that the interest you get when you put your money in a savings account cannot be compared to the interest you get when you become a lender.

Investing your savings in consumer loans is an even better idea. For example, Lendsqr as a lending platform allows lenders to borrow money at different interest rates. It also allows you to manage the loans, verifies applicants and views the reporting on them.

If you’ll want to get more interests than you do now, invest your money in consumer loans and watch it grow!

2. To invest in the lending business, you don’t need much knowledge before you start

When most people hear the word “investment,” they assume that you must have in-depth knowledge on it. People assume that you need a large amount of knowledge on the business you’re investing in. There’s no wrong in this.

For example, if you want to start investing in startups, you need to understand the startups, their financing, their business models and other key areas. Then, you need to spend more time keeping a track of the business’ growth. You would need to spend a huge sum of investing in them.

Investing in consumer loans is much simpler and much more accessible. The processes are simple and for a lending platform like Lendsqr that offers 24/7 support, you can never get lost. If you don’t feel knowledgeable enough, you can always turn to the Lendsqr support service that will help you.

Who could have thought investing could be so easy?

3. Start with as little capital that you have

People think that to invest in any business, you need a huge capital to start. While this is true, it doesn’t absolutely apply to the lending business. With as little capital that you can imagine, you can invest in the lending business. It’s not a business applicable to only the rich.

4. The risk is calculated

People often consider investing as a high-risk business, and only those with high-risk tolerance tend to thrive in investing. While this is absolutely true, it’s a different experience for those investing in a calculated risk business.

Investing in consumer loans isn’t risky as long as you conduct a proper due diligence and diversify your investments; instead of putting all your money into one loan, you can spread across several loans, invest in lending companies with insurance or create structures that can help you reduce drastically the possibility of your borrowers defaulting.

Moreover, with Lendsqr, you can take a calculated risk and reduce the default rate of the loans. Our robust yet easy- to- use toolkit helps you lend like a pro from the start. There’s really very little risk when you are investing with us!

5. A great source of passive income

The days are long gone when people focus on only one source of income where they depend on until they retire. There’s a lack of job stability and if you’re unlucky, you can get fired at any time.

Investing in consumer loans is a great way to earn more money whether as an entrepreneur or corporate worker. It’s only wise to have more than one stream of income if you love to grow your finances. Investing in consumer loans provides a great way to gradually build up a reliable income stream that can complement your salary or your pension. Start investing now. It’s better to have multiple streams of income.

Lastly, do you realize that you help others when you invest in a lending business? While it’s beneficial to you, it’s also beneficial to others.

Imagine being stuck in such a situation when you really need some money and banks are refusing to give out loans to you. There are plenty of honest people that can’t get the loans they need from banks at the point when they need them.

Start With Lendsqr!

I currently hope you’re strongly convinced in investing in the lending business. If you’re interested in investing in the lending business but aren’t sure where to start. Well, why don’t you start with us?

Lendsqr is easy to use for either of those trying out lending for the first time or those who want better ways to manage their existing loan customers.

Investing in consumer loans is a great way to add a reliable investment to your portfolio and create a stream of passive income.

Why wait? Start today.