- 1). Create a business plan. A business plan will allow you to determine how you plan to market to your customers and receive profit, and the anticipated revenue you expect to make within a certain time. If you need money to start your credit lending company, banks may require you to show them your business plan before they approve your loan. If you are not proficient in writing a business plan, there are business consultants that can help (see Resources).
- 2). Legally structure your business as an LLC or a corporation. Structuring your business as an LLC or a corporation not only gives you tax benefits, it also protects against your personal assets being seized in case of litigation. Your attorney can establish a corporation or an LLC for you, or you can incorporate yourself by going to your local Secretary of State's website.
- 3). Apply for an Employer identification number (EIN). An EIN number is issued by the IRS and it allows you to hire employees and assists you in establishing business credit and opening business checking accounts. Apply for your EIN number by going to the IRS website, contacting an IRS agent over the phone or printing out Form SS-4 from the website and mailing it in. There is no cost for an EIN number.
- 4). Determine if you want to be a brick-and-mortar business or operate online. If your plans are to be in a physical storefront that people can visit, contact a real estate agent to find local space to lease or purchase. If you'd like to have an online business, contact a Web designer by going to sites like guru.com or Elance.com. Once you have a website, you can provide information about your business and accept applications for credit.
- 5). Determine the criteria you will use before approving your customers for credit. You can pull a customer's credit report, receive proof of employment, and/or have the customer send you bank statements to show how much money the customer maintains in his accounts. Determine if you want to receive this information via mail, via fax or online.
- 6). Determine the method by which you will extend credit to your customers. You can either send them a check for the credit/loan, or offer products on your website or in your storefront that they can purchase using the credit you provide for them.