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The proven top ways of making money in this life is either selling a service or product, Money lending is a planned business program involving two people ,the lender and the borrower. the lender is giving out his/her money in return for interest attached on the money for a specified period.

Money Lending is a lucrative business in Nigeria, and any where in the world because, there are alot of needs money is solving daily, so many people need money to cater for their daily lives.

One can literary say without money it is very difficult to solve in any economy, when you find yourself in need of money and cannot provide it,you look for a money lender to help you with money either cash or in credit.

in Nigeria, there are millions of people desiring to buy or shop but has little or no money.

The requirements set by commercial banks and other traditional lending institutions are too cumbersome on the borrower, but a money lender is helpinng to reduce the stress of getting money to solve immediate needs.

Registering a money lending business in Nigeria is not a straightforward process. every thing involved requires attention and full compliance so that you don’t end up being labelled an illegal money lender.

It might interest you to know that an illegal money lender under the law is not entitled to ask for interest on loaned amount under the money lenders Act, however where the lender can prove its contractual basis and the existence of consensual agreement of parties, the lender might obtain interest if the agreement specifically mentioned so, and such agreement was executed by the parties willingly. A money lender in Nigeria can either be a Private money lender or a corporate money lender, but both requires License to practice, and such license is renewable in Nigeria.

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In this article, we will walk you through the steps required to register a money lending business in Nigeria.

Step 1: Choose a Business Name: The first step in starting a money lending business is to choose a business name which can fly with the core objects of the business. The name you choose should be unique and not already in use by another business. It is important to conduct a business name search with the Corporate Affairs Commission (CAC) to ensure that your chosen name is available. we can assist you in this regard, Cac business name search has free and paid plans.

Step 2: Chose Your Location and Conduct a Feasibility Study Before starting: This is very primary to your success, the business needs a location with potentials, choosing cities like ibadan, lagos, portharcourt, kano, enugu, and onitsha will help., it is important to conduct a feasibility study to determine the viability of the business. A feasibility study will help you determine the target market, the competition, and the profitability of the business. you can decide to go to the market by first finding out the problems faced by money lenders in that area, and devise ways to solve it through your own brand.

Step 3: Incorporate Your Business Once you have decided on a business name and conducted a feasibility study, the next step is to incorporate your business. You will need to register your business with the Corporate Affairs Commission (CAC) and obtain a Certificate of Incorporation.in this case finding an accredited cac agent is necessary, an accredited cac agent walks you through the procedures of registering the money lending business.

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Step 4: Obtain a Tax Identification Number (TIN) To operate a money lending business in Nigeria, you will need to obtain a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS). This will enable you to pay taxes and file tax returns. This is very important for your application for license, for example if you are in Lagos, you will need the tax clearance for about three years for you to apply through the chief magistrate in any magistrate court in Lagos, you will also need police report of good character.

Step 5: Obtain a License To operate a money lending business in Nigeria, you will need a reference Letter from a commercial bank, police character report for yourself or your partner directors, and tax clearance certificate, occasionally the licensing officer will do a Visitation and inspection of your business premises.in Abuja and Lagos, the licensing officer are mostly the chief magistrates, the license is renewable after one year.

Step 6: Register with the Money Lenders Association of Nigeria (MLAN) Registering with the Money Lenders Association of Nigeria (MLAN) is not mandatory, but it is recommended. The MLAN is a professional association for money lenders in Nigeria and provides support and resources to its members.

Step 7: Set up Your Office Once you have obtained all the necessary licenses and registrations, the next step is to set up your office. You will need to rent an office space, purchase office equipment and furniture, and hire staff.

Step 8: Develop Your Business Plan A business plan is essential for any business, and a money lending business is no exception. Your business plan should include your target market, your marketing strategy, your financial projections, and your growth plan.

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Step 9: Advertise Your Business Once you have set up your office and developed your business plan, the next step is to advertise your business. You can use traditional advertising methods such as billboards and flyers, or you can use digital marketing methods such as social media and search engine optimization (SEO).

Step 10: Start Lending Money Once you have completed all the necessary steps, you are ready to start lending money. Remember to always operate within the law and provide excellent customer service to your clients.

In conclusion, registering a money lending business in Nigeria is a straightforward process, but it requires careful planning and execution. By following the steps outlined above, you can successfully register your money lending business and start making profits.

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