Consumer Credit Licence

[spamalot]

Tweet

I’m in the process in starting a loan brokerage company and it would be nice if I could clear up a couple of questions I’ve got.

I’m going to be looking to sell loans predominantly via a web site and telesales.

Firstly I know I will need a CCL. How easy is one of these to obtain, what are your experiences of the application process? Any advice on this would be great.

Secondly I’d like to be able to offer loans to “sub-prime” customers and/or loans that are secured. I understand that to be able to do this I would need to fill in a CRP (Credit risk profile). I have little industry experience (ok, none as such), however I’m learning all the time and for what its worth I have an Economics degree (not totally irrelevant). Anyone know the criteria you have to meet on the CRP?

If anyone knows of any institution that might be able to help with the completion of these forms then that would be very helpful.

Any other advice is also very welcome.

Also just like to say what a brilliant forum you have here, thanks!

[tom991]

Firstly I know I will need a CCL. How easy is one of these to obtain, what are your experiences of the application process? Any advice on this would be great.

Hi, spamalot,

To apply for a CCL & help with the application, you need to get in touch with the OFT:
The Office of Fair Trading: Consumer credit licences

Their website says they are "currently experiencing delays", but the text has not really changed from about a year ago, when they were updating their computer system - so not entirely accurate.

Time to process app. varies. For some people applicants it can take as little as 4 weeks, others 8 weeks (I also know someone whose app took 3 months!). Best to check with OFT and see what current application backlog if any is...

[spamalot]

Hi, spamalot,

To apply for a CCL & help with the application, you need to get in touch with the OFT:
The Office of Fair Trading: Consumer credit licences

Their website says they are "currently experiencing delays", but the text has not really changed from about a year ago, when they were updating their computer system - so not entirely accurate.

Time to process app. varies. For some people applicants it can take as little as 4 weeks, others 8 weeks (I also know someone whose app took 3 months!). Best to check with OFT and see what current application backlog if any is...

Thanks for the reply,

Got any information of the following?

Secondly I’d like to be able to offer loans to “sub-prime” customers and/or loans that are secured. I understand that to be able to do this I would need to fill in a CRP (Credit risk profile). I have little industry experience (ok, none as such), however I’m learning all the time and for what its worth I have an Economics degree (not totally irrelevant). Anyone know the criteria you have to meet on the CRP?

Anyone know of a comapny that can help with applications?

[affiliatemarketingltd]

sent you a PM spamalot

[Michael_Anthony]

"I’m in the process in starting a loan brokerage company..."

" I have little industry experience (ok, none as such), however I’m learning all the time and for what its worth I have an Economics degree (not totally irrelevant)"...

My advice would be to go and work for a loan brokerage to gain the necessary experience BEFORE you embark on your own venture. In today's tough market, your lack of experience (which is highly evident from your questions) and almost completely irrelevant degree will mean that you will face a difficult, highly expensive and lenghthy education before you will make any money. Better to obtain this with someone else picking up the tab.

Finally, and most importantly, if you want to set up as an introducer and/or packager of loan deals, you'll need capital, proven expertise and to be able to offer any potential business partner the guarantee of decent volumes of business, none of which you have.

It's very rare for me to discourage anyone from going into business for themselves, but in this case my view is that you will be certainly biting off more than you can chew.

Another idea might be to become a finance affiliate first (we can help you with this via our school) and then set up your own brokerage (if you still wish to) once you have gained the necessary experience.

Hope that helps.

[Flex-Finance]

Anyone know of a comapny that can help with applications?

The CCA can help you with the application if you join. Promoting business and consumer relations in the credit industry – Consumer Credit Association – United Kingdom

As a broker or affiliate its hard to see you getting any real value out of them in the long term.

Another idea might be to become a finance affiliate first (we can help you with this via our school) and then set up your own brokerage (if you still wish to) once you have gained the necessary experience.

I would agree with this. I dont know if you have backing or are investing your own money but commiting to large overheads with little experience in an industry is rarely a recipe for success. Affiliate marketing gives you a low cost way to learn the industry and exposes you to segments, ideas and contacts that you can capitalise on when your ready to take the next step and grow your business.