I have noticed this need is not being met in Taiwan and would like to provide this service in the near future. As far as I know, one must have a Taiwan partner or co-signer in order to get any kind of financing, business or otherwise in Taiwan. Please take a minute and answer the following questions.
Do you or have you ever run a business in Taiwan?
Have you ever found it difficult to borrow money in Taiwan?
Would a business start-up or expansion loan be of interest to you?
Has a lack of cash prevented you from opening, maintaining or expanding a business?
No I didn’t know that. Room for both of us I’m sure, how many people do you know getting money from the Green Dragons? Did I mention this is a legitimate business, not a loan sharking operation.
Yes, I can do this legally. I know this Island is full of Entrepreneurs, this is an amazing opportunity to build something. We have been fortunate enough to see the future in a way, I mean with a little foresight we can see what has worked in many of our home nations and what may work here.
Listen guys, I will be offering loans at competitive rates. No I won’t be setting up a commercial bank. There are many other legal sources to attain loans.
…apply to Mr & Mrs Average who decide to sell their property on vendor finance terms?
Whitetiger, do you have a link/URL to Taiwan’s consumer credit code system and/or their lending acts?
In Australia, lending laws only protect the consumer, not businesses. I’d hazzard to guess that what Feiren is referring to is lending practices aimed at consumers (the voters), whereas Whitetiger is aiming at businesses which typically (Australia at least) do not have the same level of protection and thus would be easier to lend to (from a compliance point of view).
I’m wondering about how you could protect yourself if the people you lend to decide not to pay you back, or leave Taiwan if the business fails and they can’t repay the loan. I’m curious too what kind of laws exist here about setting up a private lending institution.
Sorry let me clear this up for you. I’m a loan broker. Feiren, you said that non-bank loans are illegal and in the same sentence mentioned the importance of private credit associations. ???
Do you borrow from the green dragon lending group? It is too broad a subject for me to be able to answer this question, there are far too many variables, sorry. It will be different for each case. A venture capiltalist and a loan shark are quite different.
Okay the Green Dragon lending group and their copycats will usually take a put-put, car, or house as collatoral and give you 25% to 50% of market value as a loan. Interest is compounded weekly at about 50% to 100%. Wives and daughters are sub-claused for VCD rights.
Or a common practice on Taiwan which foreigners may or may not wish to emulate is to pool a group’s monthly income. Each member rotates on taking out the pot each month. Doesn’t really increases income, but it works for frugal individuals who work better with lump sums.
There are variants of the private scheme mentioned above where loans are made to each member. Members get to make interest off the members’ that took out money before them. The last member to take a “loan” against the pot makes the most interest.
Of course these schemes only work if all individuals are more or less settled in Taiwan. Something hard to come by in the foriegner community, since most are only in Taiwan for a short period of time.
Both of these options are risky at best ac. This is nothing like what I am doing. Please understand this is not a loan shark operation, but a loan broker business. Surely you must have seen this kind of thing back home.
[quote]Okay the Green Dragon lending group and their copycats will usually take a put-put, car, or house as collatoral and give you 25% to 50% of market value as a loan. Interest is compounded weekly at about 50% to 100%. Wives and daughters are sub-claused for VCD rights[/quote]
Huei’s are certainly risky. I used to do them a lot, and because I never really had the need for the money I could always hold out to the end. That can be nerve-wracking, but the interest is very good so you get a high return against an unsecured loan. I think in a portfolio of investments it is probably worth the risk if the amount of money is modest say two to three hundred thousand.
When you are talking about venture capital you are not loaning somebody money you are buying a share in their business on an understanding usuallly in writing that as the financee you will be selling out after a certain time or under previously agreed to conditions.
