While a normal business creates a lot of stress and risk assessment, creating a lending company can be even more nerve-wracking. Not only are you counting on your idea to succeed, but you may be worried you will lose your cash from bad patrons. What is the first step you should make before you start this kind of company? Hire a lawyer.
Reduce Your Liability
The first problem a lawyer can help you solve is reducing your overall liability. This means that it is harder for people to get away with stealing the money or product you lend them without facing serious legal consequences. Hearing this should already feel relieving.
A lawyer can be a great reactionary solution to someone stealing, but they can also offer advice to prevent these sorts of things from happening. They can point you to better insurance options, create a smoother business structure, and identify potential risks in your streamlined process. All of these can take a huge burden off you—it’s like having permanent back-up!
Deal with Federal Regulations
When businesses take in large sums of money, they are placed under the jurisdiction of certain financial rules. Laws like Dodd-Frank have strict requirements for risk management and reporting. A casual business owner might not realize they are ignoring rules, but a seasoned lawyer can point this out to them—protecting them from government fines.
This can be especially helpful if legalese isn’t your expertise. The lawyers can help you understand different contracts and permits necessary for a lending business. Hire a lawyer if you know this aspect of business will be tough for you.
Stabilize Internal Conflicts
Another great thing lawyers do when you are creating a business is lay proper groundwork. This is essential if you have a business partner or group who all want a cut of the profits. Rather than figuring everything out on your own, a company lawyer can help you divide up the company assets in a peaceful way.
They can also draft agreements for your employees, which becomes essential when your business is up and running. The documents that your employees and business partners sign early will make your life much easier later down the road.
There are so many benefits to hiring a lawyer when your business is starting up. It protects you from debilitating lawsuits, prevents internal conflict, and manages your liability. These are essential in the lending industry, which can be unpredictable enough. Make your life easier by hiring a lawyer!