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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 115462
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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How do you form a lending company that gives personal loans

Customer Question

How do you form a lending company that gives personal loans of over $25,000 and business loans of over $50,000 in new york?
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
As in South Dakota, you have to form a corporation, which is your company for lending. Under NY law, you have to register and be approved with the NY Department of Financial Services and it requires a background check as well which includes any past lawsuits against you, bankruptcy, credit reports and criminal/misdemeanor charges against you. NY forms can be found here: http://www.dfs.ny.gov/banking/ialflli.htm
You would also need to prove at least a line of credit of $100,000 and liquid assets of $50,000 and net worth of a minimum of $100,000. All of these lengthy requirements are on the NY Financial Services website in detail.