Buy a credit company: how not to waste your money?

Thinking about starting a credit-related business? As usual, you have two options: start building a company from scratch, or buy a ready-made business.

Our lawyers have experience both in registering credit companies for the Client, and supporting the process of buying and selling credit companies. 

In fact, only you can decide which of the options is more profitable for you. If you want to start a business right now, it’s worth looking for a company from a reliable counterparty and you can start. Do you want to be reinsured and register a credit company yourself? This is also a good option, but you should consider the time spent on all stages of registration.

Today, we will focus on the process of buying a credit company. If you want to learn more about the procedure of registering a financial company with our lawyers, please click here.

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What is a credit company?

The Law of Ukraine clearly states that a credit institution is a financial institution, which in accordance with the law has the right, at the expense of attracted funds, to provide financial loans at their own risk.

In turn, the financial credit can be those funds, which in this case a non-banking institution lends to legal entities or individuals. 

There are several types of non-banking credit institutions. They include: 

  • pawnshops;
  • leasing companies; 
  • credit unions; 
  • insurance companies;
  • other legal entities with permits for lending.

What is the difference between a non-banking credit institution and a bank? Here is a short list of peculiarities of both types of organizations:

  • Both the bank and the non-bank credit organization (NCO) act as a legal entity; 
  • both organizational forms have the right to credit citizens;
  • unlike NCOs, the bank must function as a joint stock company

Please note! In order to legally conduct your business activity, your credit company must have a license to lend money, including on the terms of a financial loan.

Since recently, this license has been issued by the National Bank of Ukraine. Due to this fact, the licensing terms and conditions are not fully clear, and the procedure for obtaining such a license, as well as registration of the company in the register of financial institutions, may well be delayed today.

Of course, if we are talking about buying a credit company, such a company must already have a ready-made license and be included in the register of financial institutions. 

You may also like: Our Practical Experience Of Registering Financial Institutions In The Register

Buying a ready-made credit company

For many, a ready-made credit company is the most comfortable and targeted way to generate income without delay on all registration procedures. 

Criteria for the benefits from such a purchase: 

  • opportunity to provide credit services immediately after purchase, the process of which lasts up to 5 business days;
  • there is no need to go through the whole procedure of preparing the company for this type of activity and spend time and nerves on it;
  • confidence in the “transparency” of the company’s past activities, which we, as a company that has registered a credit firm, guarantee for you.

If you have decided to buy a ready-made company, we remind you that before you buy it, it is worth paying attention to whether the company has previously conducted any business activity and if so, whether it was legal and “clean”. 

It can also be checked for debts, fines or illegal activities

The existing problems of buying companies include the fact that although it is sold as a financial institution, it doesn’t always mean that it has a valid license or is registered in the register of financial institutions. 

When cooperating with our company, you will have no doubt about the correctness of your actions or whether the purchase is legitimate in general. We personally register all companies and provide all documents related to the registration and business activities of the company.

You are guaranteed to get the desired result after the re-registration of the company, and you can start your business within the shortest possible time. 

Do you want to choose a credit company for yourself? 

Find more information on available financial companies here.

Publication date: 17/09/2020

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