Is lending business worth?

Discussion in 'Growing and Managing a Business' started by daytrader, Apr 2, 2012.

  1. daytrader

    daytrader
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    Two Indian nationals contacted me and that they'd visit our place and ask if i can guide and be an interpreter for them. They plan to do a survey whether there will be lots of people who will be clients. They will lend money or provide trikes (bikes with sidecar) for people and pay them with interest. Just so you know these trikes are somehow the means of transportation of people living in selected areas which they plan to do the survey. Meaning they will provide livelyhood for these people and in return they will ask for the payment along with the interest.

    It must be worth to proceed into this business as they're willing to move here for it. But I asked them how will the people pay quarterly or semi annually or simply annually. Daaruk replied, daily. :D

    These people must really be hardworkers. Won't they spend much on gas compare to how much theyd gain?
     
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    #1 daytrader, Apr 2, 2012
    Last edited: Apr 3, 2012
  2. Casey

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    nice business idea although it's not something new. I imagine people who'll rent the trike daily will also carry the gas expenses.
     
  3. Business Attorney

    Business Attorney
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    Will the trikes be used for business (to transport passengers or packages). If so, that is pretty much the model in Chicago for taxis. The taxi driver pays a daily fee for the car, and pays his own gas. One difference is that if the lenders are talking about "interest" then apparently the people getting the trikes will actually own them, which is very good for them.

    Since this is a very localized business, I can't say whether it is a great idea or not. It really depends on whether there will be income to support the payments for the trikes. If they hand out a lot of trikes and there is not enough business, the people won't be able to pay the interest and will go into default.

    I have to assume that the lenders believe that there is enough business for the people to use the trikes to earn the money to pay for them.
     
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  4. daytrader

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    Yes. These trikes will eventually be owned by the people after paying the purchase value and the interest. However, it should take time before they can fully own it. Two Indians will be arrive on the second week of April and they'll contact me. :D hopefully I'll get to earn about $175 for 3 days of assisting them. Its actually a good rate here in our country.
     
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