Industry spotlight: Online loan consolidation
Collect online in a heavily regulated industry.
Businesses that offer loan consolidation or similar financial services find that they fit into the “high-risk” category when it comes to online payment processing. Due to a higher than average risk of chargebacks or other losses, merchant processors often will not provide services to such a business. Finding a good payment gateway and an appropriate merchant account is crucial. Please note, for most industry types, we can guide you through the entire process, and recommend a merchant account for you through one of our vetted, trusted partners.
Learn your state and local law
One of the most important aspects to the online debt consolidation industry is following the laws and regulations that apply in your area. Debt consolidation is an enticing business because it can be seen as a relatively easy way to make money, but the industry is heavily regulated. In addition, how you run your business, you also are limited in the way you can market yourself online. Take the time to understand the industry and know how to market yourself in a way that is acceptable and profitable. This article has some great info on what you need, and this article has some solid tips on how to get started.
Important note. You need to do more than read a few online articles to get started, you really need to work with a qualified attorney who specializes in businesses like yours’. We are not attorneys and certainly do not give legal advice, that would be a really bad idea!
Know your competition
One of the most important parts of this industry is to know who your competition is, where they are located and where they are targeting potential clients. If there are stiff competition it may be better to start your business in another area, fighting for clients is difficult when your competition is not only competent but also has a history in the region. Even though you will be heavily tuned into in your online endeavors, your business will still be somewhat regionally focused – to some degree at least – due to the licensing requirements you will likely encounter. You can definitely create programs and agreements to provide your services in multiple states, but you need to be set up to do so legally. Here is another great article that has useful tips in regards to how you start your business, including ways to acquire a pre-existing business instead of starting from scratch.
Be a source of information as well as services
One important way to get new clients is to be a resource of knowledge in your industry, tell your potential customers the how and why’s of the industry and earn their trust with providing useful tips and tricks. Expertise is a valuable commodity in the “local” online markets especially as it establishes you to a large group of people in a small area. Keeping your reputation up will be your best asset in an industry full of sharks.