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Am I asking for cheaper credit, or offering the best savings rate on the market?

eightpercent
Posts: 3 Newbie
I've had a great idea, or so I believe, but some have mentioned to me that there could be some legal issues. Can anyone help me understand what I'm trying to do?
I'm a yoga teacher, I spent the last year in a strange town (London) where I knew nobody and had no contacts and no qualification (albeit very well trained and had two years experience).
I wanted to test myself and make it a difficult test so I went to London and, against the odds, after a year of hard work, I actually got to the point where my income was more than my rent, bills and food. I actually managed to save up a few hundred.
Then I went to India to do a 10 week, 500 hour yoga alliance accredited training course. The course cost a little over 2K, living expenses and flights took the total cost up to around 4K. So I am now around 4K in debt to the bank, a sound investment in my humble opinion.
I'm paying quite a high rate of interest on my debt, while savers are getting a very poor rate on deposit. So my idea is this:
I want to offer an 8% return to investors.
Does anyone know how I can make sure that what I'm doing is legal, and what sort of contract is needed in order to make it official? While I'm at it, does anyone fancy getting 8% on deposit?!
Given that I was able to make a profit with no contacts or qualification. I'm certain that I can turn an even greater profit now that I have this qualification.
How do I go about getting investment? Can I call it investment, or am I really just looking for a cheaper line of credit? Advice and opinions please?
I'm a yoga teacher, I spent the last year in a strange town (London) where I knew nobody and had no contacts and no qualification (albeit very well trained and had two years experience).
I wanted to test myself and make it a difficult test so I went to London and, against the odds, after a year of hard work, I actually got to the point where my income was more than my rent, bills and food. I actually managed to save up a few hundred.
Then I went to India to do a 10 week, 500 hour yoga alliance accredited training course. The course cost a little over 2K, living expenses and flights took the total cost up to around 4K. So I am now around 4K in debt to the bank, a sound investment in my humble opinion.
I'm paying quite a high rate of interest on my debt, while savers are getting a very poor rate on deposit. So my idea is this:
I want to offer an 8% return to investors.
Does anyone know how I can make sure that what I'm doing is legal, and what sort of contract is needed in order to make it official? While I'm at it, does anyone fancy getting 8% on deposit?!
Given that I was able to make a profit with no contacts or qualification. I'm certain that I can turn an even greater profit now that I have this qualification.
How do I go about getting investment? Can I call it investment, or am I really just looking for a cheaper line of credit? Advice and opinions please?
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Comments
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Do a search for Zopa.0
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That looks good, thanks, I'll definately look into that but I have friends and family who are interested in 'Investing' and they want something on paper. How could this work? Would we have to form a mini credit union or something.
Edit:
Having read up on Zopa, while it's a great idea and I'd certainly consider lending through it when I'm back in credit, I believe I'm offering a better deal:
My current line of (expensive) credit is flexible so there would be no question of default or missed payment as I could simply revert to my current line of credit if the investors needed their money back. I would be happy to return it instantly on demand, along with the appropriate proportion of the 8% interest, whereas with Zopa you'd have to wait for the loans to be repaid to get your money back.
Also, Zopa charge fees to both lender and borrower. With me there would be no fees.
Zopa are cutting out the middle man (the banks) but they are replacing him with a more competitive middleman (Zopa).
I just need to know what sort of contract would be needed between myself and my Investors?0 -
Do a search for promissory note.
You can pay to download a template but no point in doing that as you can find free ones.0 -
Brilliant, that's exactly what I needed (apart from a couple more investors!).
I assume that someone lending me money at 8% wouldn't be in breach of UK usery laws. You wouldn't happen to know, would you?
Thank you so much for your help so far0
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