Hi guys, long time lurker, first time poster.
I have a house that is nearly paid off already, so I am refinancing the house and intend to use to money to start a small personal lending business. And I believe that I need a credit license to operate the business or be authorised to operate as a credit representative.
However after a long search through google and ASIC database, I found that most of the Credit Licensee who authorise credit representative are only offered to brokers and not credit provider.
Could anyone kindly tell me where I can find a Credit Licensee who authorise representative for a credit provider not just broker?
Hi there
I think i understand your post.
ASIC regulates the new regime of lending and you should check out their website to see what the requirements are for you obtaining your own ACL.
You are unlikely to find an ACL who is prepared to take you on as a Credit Representative merely so you can lend your own funds given the costs, supervision requirements and ongoing training and compliance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yep i agree with Richard – especially if your starting off “small” the risk is to high for them to take you on their books + they don’t know you.
The only way around this is for your to APPLY for your own Credit License via ASIC – as the Credit License are NOT just for brokers….to take up your own it’s gonna cost a bit + time.,
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
another solution- is to invest your money into a well established company that does private lending;
If your interested let me know ill send you the contracts to some of the private lenders – average return is 11%– but having said that it still comes with it’s associated risk!Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks Richard and Micheal,
I read the ACL application guide, it said the responsible manager need to be competent, and according to R206 competent mean I have to have at lease 2 years experience. If no one gonna take me on as their Credit Rep even if i offer fees and spilt, how am I suppose to have the experience in being a credit provider in the first place, what a dumb rule. Anyway thanks for the reply guys, greatly appreciated.
Pogita wrote:Thanks Richard and Micheal,I read the ACL application guide, it said the responsible manager need to be competent, and according to R206 competent mean I have to have at lease 2 years experience. If no one gonna take me on as their Credit Rep even if i offer fees and spilt, how am I suppose to have the experience in being a credit provider in the first place, what a dumb rule. Anyway thanks for the reply guys, greatly appreciated.
It’s a catch 22- no one is willing to take u in unless u have 2 years …u may have to stat off small and do something simliar- ie work for a bank or private lender in simliar role etc….but it makes sense for you to have some sort of expereicne before they would allow you to go on your own; There’s a lot of fraud going around especially in private money lending …plenty of fake ID and payslips out there!
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Pogita
As ASIC requires Credit Representatives to operate "on behalf of" the licensee, the Credit Representative path probably won't work.
I do now of an ACL applicant that had its ACL application knocked back due to a lack of prior experience. What this Company did was hire in an external, appropriately qualified and experienced Responsible Manager. This hired in Responsible Manager enable the Company to gain both ACL authorisations, i.e:
1. Engage in credit activities other than as a credit provider, and
2. Engage in credit activities as a credit providerThis only works for Company ACL applicants as individual applicants must be appropriately qualified and experienced themselves.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
I see I see, Thanks Paul.
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