Lending is a very high risk business, and customer acquisition is not that easy because most people don’t borrow money every time once their loans is paid off you may not have them as customers ever again. Also investor must not be greedy
I am trying out a concepts in space and so far the reaction is very good because no other lender offering such product.
Good response. Wishing you the best!
Hi Chiwete, How is it going? I 'd like to speak with you about a publication. Please let me know how best to reach you. Thanks Tosh
Hi Chiwete,
I’m an investor in Funding Circle so I understand the P2P lending market you’re after. The best investors can aim to make presently is through returns on T Bills, so a platform offering higher rates is therefore worth checking out.
Your risk management methodology seems to focus more on insuring the investor’s amount against a potential default. However, I’m not sure I understand how you intend to incentivise the customer to pay. If your losses rack up, then insurance gets more expensive and investors pull out.
In London, I have to pay because a bad credit rating means I cannot get a mobile phone or rent a flat. In Nigeria, as someone mentioned earlier, nothing drastic may happen. Do you intend to implement some sort of asset backing, guarantor scheme or collateral in order to make it difficult for debtors NOT to pay.
If you can solve this, then I believe you’d be on to something.
Hi @chiwete I just wanted to ask if this platform of yours is area restricted?
Hi @naruto
Apologies for the late reply. At the moment, we are targeting the Lagos market; with the intention of moving to other parts of the country. I hope this helps.
Arrrghhh, and I shouldn’t have registered… This is something else?