A money-transferring agency transfers monies between two separate parties. Popular money-transferring agencies include PayPal and Western Union. The criteria for starting such an agency varies by state. However, most states require the owner of the business to have a set amount of capital. With this business, you can have a brick-and-mortar storefront, conduct business only online or a combination of both.Money Transfer Business Plan
The money transfer business plan shows the profit potential of a business model that facilitates the movement of money, typically between individuals, for a modest processing fee. The ability to capitalize on differences in exchange rates is also an important part of the money transfer business model. For your business plan, describe in detail the services you offer and outline any ancillary or future services that could be introduced. Pre-paid cards, phone calling cards, and small personal items are commonly also sold at these locations, and can help bolster revenues.
Other important questions for your business plan include these:
- What is the primary competition you face (Western Union, Money-gram, regional players, etc.)?
- Can you provide helpful stats about the growth rate of your industry or the expansion of your business since its inception?
- Who will be on the management team and what roles will each person play?
- How will you market your money transfer services -- online, point of sale displays, etc.?
- Do you have any industry or affiliate relationships worth exploring?
Money transfer businesses make their money on a simple business model, so preparing a decent plan is not difficult. Preparing a great plan, however, is very hard. If you need global research, an assumptions-driven financial model, a compelling presentation of past performance, and a dedicated team and project manager, call MasterPlans. We have written for several money lending and money transfer businesses since we started in 2002. We can deliver you a great business plan in about 2 weeks. Call 877-453-2011 today!
Instruction:
- Meet your state's minimum requirements to start a money-transferring agency. Requirement's often include, but are not limited to, a minimum net worth and a surety bond.
- Obtain a money-transferring license and pay all application fees. The requirements for a money-transferring license and the application fee varies by state--the National Money Transmitters Association has a list of licensing requirements for each state, including the District of Columbia and Puerto Rico.
- Obtain and submit a Registration of Money Services Business application (FinCEN Form 107) to the Financial Crimes Enforcement Network, which is an agency within the Department of Treasury. You will need to file the form within 180 days after the date that you establish the business.
- Create a merchant bank account with the bank(s) of your choice. A merchant bank account enables the money transfer agency to accept credit and debit card payments, deposit payments into your customer's accounts, as well as retrieve funds from your customer's accounts.
- Open your business after all applications have been approved and licenses have been awarded. You can create a brick-and-mortar storefront to accept money transfer requests or complete all transactions online with your business's website.
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