Each lending platform is different, and as such, each one requires a different approach. However, there are some common considerations that all new lending platforms should take into account.
Here, we take you on a whistle-stop tour and introduce to you our first 5 steps to setting up a lending platform.
- Identify the challenges you may face
It’s not easy to predict the future and recognise the challenges you’ll face in the future. However, conducting research and seeking advice from industry experts allows you to analyse what sort of challenges you as a new company may face. Plan well, think about the future, and be creative when imagining what challenges you may come up against.
- Consider recruitment
While setting up your platform, think about future growth. It’s important that, although you might not need them just yet, you take into consideration the future employees you may look to recruit at a later date. An RACI (Responsible, Accountable, Consulted, Informed) Matrix is good for this exercise; enabling you to put things on paper and assess your resources, both current and future. Make sure you have enough hands on deck to launch your platform.
- Create a revenue model
This is something that we consult on at the very beginning; it’s that important. Think carefully about what you’re going to charge for, how much, and when. This may be adapted and updated as the platform develops, but it’s important that you have an initial idea.
- Research and plan for growth
We have conducted some research to collect data concerning initial growth of companies we have worked with. Such data enables you to see the possibilities upon launch, and consider what can be done to improve.
- Plan your budget
A necessary step in setting up a lending platform is planning spend. This may evolve as the project proceeds, but having a realistic idea of what you’ll pay out is vital before you begin. Take advantage of running an online business; be an online business. Research where to work, take a look at your competition and plan well.
We have produced a White Paper that goes into more detail about preparing, launching and growing peer-to-peer lending platforms. To download the full document, please email us at firstname.lastname@example.org and request a copy. And keep an eye out for our upcoming blog post, where we name our Top 5 Tips for Launching a Lending Platform.