# How to Start a Lending Business Launching a lender means capital, licensing, and infrastructure all at once. This founder's guide walks you from capitalization to your first licensed origination, with specialists ready to run the filings. ## Building a Lending Business from the Ground Up Starting a lending business typically involves significant capital, comprehensive licensing, and a deep understanding of both state and federal regulations. This guide covers the general steps involved in launching a properly licensed lending operation. Consult with an attorney for guidance specific to your situation. ## How to get licensed 1. **Business Model & Capitalization**, Define your lending products, target market, and secure the capital needed to fund loans and meet state net worth requirements. 2. **Entity Formation**, Form your business entity, obtain your EIN, and establish your corporate governance structure. 3. **State Licensing**, Apply for consumer or commercial lending licenses in your target states through NMLS and direct state filings. 4. **Technology & Infrastructure**, Implement loan origination systems, underwriting tools, payment processing, and filings management platforms. 5. **Filings Program**, Build out your filings management system including policies, procedures, training, and monitoring. 6. **Funding & Capital Markets**, Establish warehouse lines, capital market relationships, or balance sheet funding strategies for your lending operations. ## Frequently asked questions ### How Much Capital Do I Need to Start a Lending Business? Capital requirements vary significantly by state and loan type. Some states require minimum net worth of $25,000-$250,000, while consumer lending operations typically need $500,000+ in working capital. ### Can I Lend Online Across State Lines? Generally, yes, but most states require lenders to be licensed in each state where their borrowers are located. Online lending typically does not eliminate state licensing requirements. We recommend consulting with a Cornerstone expert or your attorney to understand the specific requirements for your lending model.