Lending money - a good investment?

Philippines
January 13, 2012 12:04am CST
Hello mylotters! My friend's mother is lending money and she is making huge money! She is lending million pesos now as what I've heard. Because of this, some of my friends are investing in my friend's mother. They are like stakeholders or what.. They are also making huge money. I get jealous because they are rich now. Unlike me, I'm striving to earn more money. Do you think this is a good investment? If you have money, where do you invest it? Thank you!
3 people like this
28 responses
@enelym001 (8322)
• Philippines
13 Jan 12
My mom is lending money too. But only to people she trusted and only a small amount. It's difficult to trust a big amount of money to someone. Some people are just lucky with business but I don't know whether investing on their business would be good. It's better to put up your own business that entrust your money with someone. She will make money from your money while you get only a small percentage. So I would say save up some money and put up a small business.
1 person likes this
@enelym001 (8322)
• Philippines
13 Jan 12
champoy will refer you to his rich friend who can lend you even more than that.
@phillyguy (3005)
• Philippines
13 Jan 12
okay hi champ my friend
@phillyguy (3005)
• Philippines
13 Jan 12
just in time mel can I lend some money from your mom by some money I mean it's just around 100,000 pesos may I?
@aerous (13434)
• Philippines
14 Jan 12
Yup!Lending is a good business, my friend. Because many people today need money and what they just run was the lend money from their friends, relatives or the lending agency...
1 person likes this
@aerous (13434)
• Philippines
17 Jan 12
You right capital is the big problem when putting up a business. I really want to build a business but I have no capital to do it.
• Philippines
19 Jan 12
Yes it is really hard to put up a business if you don't have a capital to built it. That is also one of my problems too. That is the reason why I am trying to invest some of my money in this kind of business.
• Philippines
16 Jan 12
I agree with you. I guess this is a good start to invest your money. Many people now need money to put up their own business but have no enough capital. I guess this is a good investment if you want to grow your money then put up your own business later once you have the enough money. Happy mylotting!
@2004cqui (2812)
• United States
14 Jan 12
No one can tell if your friends mother is a good investment unless they investigate it themselves! I invest in myself. If that means I find a good business and have the start up money I've been known to take on the challenge. If believe it will be loosing money I will drop it and drop it fast!
1 person likes this
@2004cqui (2812)
• United States
16 Jan 12
As long as you see no reason not to after through investigation, go for it! As long as the business is legal (the most important aspect) you night no be selling junk!
• Philippines
17 Jan 12
Thanks 2004cqui! I will try my luck here. It doesn't mean I will stay investing in this business. If I have enough money, I will put up my own business. I know that this is the best way to invest my money. Happy mylotting!
• Philippines
16 Jan 12
I guess her mother knows how to run this type of business. As of now, she is lending million pesos. I haven't heard any problem from my friend. I think this a good start to invest money.
@RamRes (1723)
• Argentina
18 Jan 12
Being careful with whom you loan money and how much I guess you can get a reasonable return in the long run. It's a risky option and profit isn't never immediate or even soon, but with big amounts involved it's possible to make a nice margin. Also it's needed a lot of money to begin with. I would not do that, I prefer safer investments if I had any surplus. But very good for she that seems to know the business very well.
1 person likes this
@RamRes (1723)
• Argentina
22 Jan 12
I've tried the same and with similar results, just leaving the money in bank gives negligible yields that don't even compensate inflation. I'm currently using a time deposit in my bank, those give better profits and are much safer than lending money. In my case, it gives a little over 1% monthly so I think it's no bad for leaving the money there and doing nothing. The bad part is that you cannot touch your money in that time until the deposit expires. Think about it, your 15000 pesos may give a profit of nearly 150 for the same month if your bank allows it. Not sure if it's many or too little, but seems better than the 8 current pesos
• Philippines
19 Jan 12
Yes, I agree with you. It is a very risky business. In order to make huge money in this business, you need a big capital. But in my case, I really don't have huge amount of money actually. I am planning to invest only some of my money. I have a account in the bank but the interest is very low. I have 15K pesos in the bank, after a month it increases by 8 pesos only. I am quite disappointed so I am trying other ways to grow my money other than put it in the bank.
• Philippines
7 Mar 12
Thanks ramres! I haven't tried that. I only have a savings account in the bank. Maybe next time I will try to have a time deposit account. I think this is a great idea. Thanks for sharing! Happy mylotting!
• United States
14 Jan 12
I don't know. If she is charging very high interest it could be illegal. Does she have a license to lend money, like a finance company? If it's not a licensed company I would steer clear of it.
1 person likes this
• Philippines
16 Jan 12
I think they have a permit to operate this business. I don't think they would do this illegally. They are don't do scam. I guess their interest is 8%. It's not big right?
1 person likes this
• United States
16 Jan 12
Oh that’s a great interest. I was worried that it was some kind of loan sharking, you know with paying back double the loan or something… you said they were rich, and I thought that maybe they were doing a loan sharking business. We have some LEGAL almost loan sharks here… they call them payday loans and other kind of loans… don’t know what they call them… but it’s big interest for people that need money and can ‘t go to a bank or finance company.
• Philippines
17 Jan 12
I don't think they will become loan sharks. I hope they are not. But I trusted them. I have heard that because of this business, they had a piece of land and a car. These are the collaterals from their borrower who weren't able to pay.
@tamirs (1807)
• Philippines
13 Jan 12
Hi champoy,i can say that lending as business depends on the person managing it. Cousin and I used to lend money before as our business but my partner left me pennyless. I wasn't here before when the business is on going so she made her way to"my money".She told me all the people who got the money didn'y pay and most went abroad.Good thing we just started then and the money i gave isn't that much to make me freak out and sue her. In other case,my friend is also in this kind of business and i can say that she is doing it well.Maybe because she is the one to really supervise it and look after it.Unlike with mine. If i will be given a chance to start a business again,maybe i can try farming or raising hogs.We have a lot/farm nearby and as of now my father is the one doing it but since fund is not much we can't raise the quantity of crops they have now.
1 person likes this
• Philippines
14 Jan 12
That is such a very bad experience tamirs. Actually, that is one of the reason why I am quite hesitant to invest in this kind of business. The risk involve is very high. You will lose all your money if the person who borrowed your money will hide at the end because he can't pay his debt. I also raise some pigs but my mother is the one who manages it. I am looking for other opportunities to earn money. Lending is quite promising but very dangerous.
@tamirs (1807)
• Philippines
14 Jan 12
Very dangerous indeed. I wanted to raise hogs eversince but i think i need more money to do it..Why not have a computer shop/cafe ?
• Philippines
14 Jan 12
I guess it is expensive to open a computer shop. You have to buy computers and apply for internet connection. I guess that need much money. I have a full time job. I guess it would be hard. I want to invest my money in something that would not require too much of my time. Anyways, thank you for your suggestion. I appreciate it. Happy mylotting!
@mr_pearl (5018)
• India
15 Jan 12
Oh... So she is making money by collecting interest on the amounts that she hs lent. That is awful bad... In my country, it requires a legal license to practise this trade. If I had millions then I would keep it in my bank account and let it grow by the interest from the bank. I would not live on the interest from the poors ... :(
1 person likes this
• Philippines
16 Jan 12
I guess they have a permit/license to operate it. I don't think they would do it illegally just to make money. I've heard from other people that it is not healthy to keep your money in the bank. It is better to invest it to something profitable. And, they interest of the banks are too low. It is not worth it.
@derek_a (10874)
14 Jan 12
Money-lending is not a business that I would like to be involved in. Here in the UK there has been problems and bad press about unlicensed money-lenders who charge extortionate rats of interest, and it is not a reputation that is to be admired. I would never go to a money lender only to my bank or other well-known financial institution if I needed to borrow money and in my mind, if I cannot afford to buy something, then I let it go until I have the money to buy it.. I would only invest money in solid investments that I know will give me a profit - there are many investments out there, where I could lose money, and in view of the all the problems of the world, in my mind, it is not worth the risk. People who get very rich, seem to have other, often more serious problems, if only it is a constant worry that their wealth is not going to last.. And it isn't because nothing on earth really belongs to us, as one day, it is certain that we are going to leave it all behind.. We never know when that day will arrive, so fretting over getting very wealthy, seems a little futile to me... Don't be jealous, life it too short.. _Derek
1 person likes this
@derek_a (10874)
16 Jan 12
I think that everybody finds their own niche in which to make money in life. I try not to judge what others do, but I know what I would and would not do. _Derek
• Philippines
17 Jan 12
Thank you derek. I will try my luck in this business but I will not stay forever in this business. I know that this is a very risky business. Happy mylotting!
• Philippines
16 Jan 12
I think they have a license. I don't think they would go into this business illegally. I trust them. I agree with you that nothing in this world will last forever. Money will be lost from us one day. yes, most of the rich people have very serious problems especially about money. I think this is a good strategy to grow my money. If I have enough money I will put up my own business. I don't think I will rely on this type of investment forever. what do you think?
1 person likes this
@annierose (18926)
• Philippines
13 Jan 12
hi champoy, Here in our country, many people make a living by lending money and puttig a big interest on it. I overheard many people say that it is bad because it is like taking advantage of people. Actually, I am thinking of putting my money in investing it into a house for rent business. I like to help people who don't have their own house and lot to have a house which they can pay for a monthly basis.That is also the business of my older sister and I think it is much better than lending money and asking double or triple interest on it.
1 person likes this
@Queen_11 (307)
• Philippines
13 Jan 12
Annierose I share the same sentiment with regard to making a business out of money lending. It never appealed to me making an interest out of the borrowed money. My friends borrowed from me but I never made even a cent from them. That is my choice and I am proud of it. It is my way of helping them get out from the financial difficulty they are facing. If others are fine with money lending as a business, then by all means please continue. I just wish that they don't set the interest rate so high that the person will no longer be able to get out from the cycle of never ending payment.
1 person likes this
• Philippines
14 Jan 12
Yes, I was thinking of that kind of business annierose. But as of now, I have no enough money to build a house for rent. I only have few cash here and I am thinking of investing it to grow. I also heard from other people that this business is bad and will give you bad karma. I don't know if it is really true though. It feels like in lending money you are cheating other people and you are not helping them to succeed in life financially.
@bounce58 (17387)
• Canada
14 Jan 12
I'm not sure if lending money is a good investment. If you can make sure that everybody pays back what you lend them, then maybe. This means you only lend to people who are not desperate. That if in a bind they have something to pay with. I think if you have money, you could put it in business. Something that you have passion for. That would be the best investment.
1 person likes this
• Philippines
16 Jan 12
My plan is to invest in money-lending business then eventually if I have enough money I will put up my own business. Do you think this is a good strategy? I only have few money in my pocket. I want to invest it to grow. Thanks for your suggestion! I apprecite it.
• Philippines
14 Jan 12
Lending money has always been here being utilized to make profits and as investments. Banks and cooperatives use this strategy. Many of such kind of ventures are good investments, but of course, there are some which wasn't able to sustain. I think that you can really earn big in a lending business, however, such business requires you to be critical of to whom you will lend your money. Many banks closed because those who borrowed money from them wasn't able to pay. That can be the risk and downfall of such a business. So if your mother have a nice record of good credit paying clients, then that business will surely be profitable indeed! Maybe I can try to invest in your mother's venture too. I need some to diversify my investments and that lending business of your mother can surely give me another good option and new look at investing.
1 person likes this
• Philippines
16 Jan 12
It is not mother who is in this business. It is my friend's mother actually. I think they have good clients because some of my friends also invested to her. One of my friends invested hundred thousand pesos. He is receiving good amount of money every month.
• China
15 Jan 12
I think lending money may be a good way to plan the way to buy some thing or to raise money.But if you trust this way to be eager to make money,it may bring you some trouble.Tht risk is much bigger than other ways.
1 person likes this
• Philippines
16 Jan 12
Yes, this is a risky business. You are not guaranteed that you can get your money back. The risk is very high. People engaging into this business should know how it goes. I agree with you that this is a good start to raise money. I guess this is the easiest way to make huge money.
@sumatix (257)
• United Arab Emirates
13 Jan 12
I have heard of this kind of business but at the same time it is risky also as the money lended has to be taken back also, so you just cant lend money to anyone..In this tyoe of business they lend money and charge some interest to the person depending upon the payback duration just like bank loans.. I personally like to keep my money in bank..earn interest, readily available, and safe too..
• Philippines
14 Jan 12
Yes, this is a risky business but it can double or triple your investments. That is one thing that makes this an attractive way to make money. I have money in the bank too. But it is not healthy to keep it on the bank. It would be better if you invest it into something and let it grow. Happy mylotting!
• Philippines
16 Jan 12
yes, I agree with you. It is better to invest in a business where you can work hard. Lending money is really risky. You never know if the person you lent to will pay you back. Happy mylotting.
@sumatix (257)
• United Arab Emirates
16 Jan 12
i certainly agree in investing money rather than lying idle in banks but i like to invest my money where i use it and i am responsible for everybit, money lending is something that looks so luckrative but when you lend someone you never know if he flees away with it. ya small amounts is ok but generally people dont go for loan for small amounts.and many a times it rally gets dificult to get your money back..i would rather invest my money in some business where i work hard and make it double you know easy money is not that easy... :)
@parascevi (313)
• Greece
13 Jan 12
If i had money i would invest these in buying houses and rent these.But it needs a geat deal of money to do such investments.
1 person likes this
• Philippines
14 Jan 12
Yes, that is a good investment. But it is hard to do such business because you need to have huge money to buy houses. This is a good business if you have much money in your pocket. Thanks for sharing!
@zandi458 (28102)
• Malaysia
13 Jan 12
Lending money without a valid license is illegal in my country. Still people do it privately and here we call it 'shark loan'. The lender will impose high interest rate. If the borrower can't meet the monthly payment then the lender will send thugs to harass the borrow until they pay up. It is a high risk business and don't think would do this sort of business even when the returns are good.
1 person likes this
• Philippines
14 Jan 12
I am not sure if they have license or not. I guess it is an individual run lending system. Yes, this is a very high risk investment yet the easiest way to make huge money I guess. I think many people get rich by lending their money. There are also others who failed in this business. Do you know other ways to invest? Thanks! Happy mylotting..
@scheng1 (24650)
• Singapore
13 Jan 12
Hi Champoy, your friend's mother is not lending money. She is investing, and that is a different matter from lending money at all. If you lend money, and charge an interest, you will earn only when the person you lends return you the money with interest. if you invest in a business, you can get many times the profits. For example, someone needs money to start a business. You put in a thousand dollars, and other people put in the same amount. When the small business becomes big business, and the owner lists the company in the stock market, you can make a few million dollars. That is how the rich people get rich. But most people do not dare to do this. They are afraid that a business failure can wipe out their life saving. That is why you must choose the business partner very carefully. Make sure it is someone who knows about business, and very determined to success. If you lend money to gambler, or people who play in the stock market, you are not going to see the money again.
1 person likes this
• Philippines
16 Jan 12
Yes, I agree with you. That is why most people who are into this business get rich. It is because this is the easiest way to make money. It could double or triple your investment. I guess my friend's mother is good on this business. I trusted them. This is quite risky. That is the only thing I am afraid of. The risk is very high.
@Graceekwenx (3160)
• Philippines
13 Jan 12
Hi Champoy... All is can say is.. big NO!!! Not unless you can find a way to insure your lending money... or... if you have a great and nasty collector like Citibank has hahahahah!!!! I have lost my money thru lending champoy thats why.. i'd rather not. I have confided this to my friend priest and he said... if ever you intend to do a business, make sure that there is a visible product not a liquid one. I lost so much... and to make it worse, those who borrowed are nowhere to be found.
1 person likes this
• Philippines
14 Jan 12
That is such a worst experience. It left you nothing and penniless. That is what I am afraid of if ever I would like to invest in this business. This is really very risky but a good way to earn money fast as it could double your investments. Thank you for sharing your experience grace! I guess most people are not in favor of this business. I guess I have to find some other ways to invest my money. Thanks!
@yspmyl (3435)
• Malaysia
13 Jan 12
Hi! Here such a money lender we call them "Loan Shark" where they implied high daily interest. And they will force you to pay back everyday or every week. Many people have been fall into such a trap and if they cannot pay back on time, they will be threaten either they splash red paint at their house or paste poster or write something bad about the borrower. We all here hate them so much. But if your were to on their site, and on the investment site, of course that is really a good money, imagine you can double up or triple up your money within a short period, where else you can find that amount of money in a short period?
• Philippines
14 Jan 12
Yes that is true. They will force you to pay back. I don't know if it is every week or every month. Actually, most of the Indians (I guess they are) in the place where I live do this. They go to the houses and collect payment. That is the good thing I've heard on lending money. It can double or triple your investment. This must be the easiest to make money and get rich. Easiest but risky I should say..
@alberello (4752)
• Italy
13 Jan 12
I'm sorry to leave, but I do not like so much the people who lend money. Although not questioning the fact that they are honest people, here in Italy they are not well regarded. This happens because there are people called "loan sharks" who ask something like 1400% the amount paid. I know that this is not your case, but maybe if I were you I study an alternative method to earn.
1 person likes this
• Philippines
14 Jan 12
1400%? I guess that is too much. I am not sure if people can afford that. It is very huge. Aside from lending, do you know any good alternative way to invest money?
• Indonesia
13 Jan 12
I'm mot interesting to invest in that way, lending money is very risky investment. I prefer to invest in another field like forex.
• Philippines
14 Jan 12
Yes it is a very risky investment even though it make you earn huge money. I do not know forex. I don't know how it goes. Can you earn more money in forex than lending?