Ah Loong Business

The recent news of loansharks being arrested set me thinking about their predicament, and of what could have been different if certain sets of parameters are changed, if at all plausible.

But first let me make several assumptions:

1. Customers
Those who go to loansharks cannot get a loan from the banks, or do not realise they might actually be eligible for a loan from the banks.


2. Suppliers
Loansharks are operated by hoodlums. The entire operation may be owned (or financed) by ordinary, on-the-surface law-abbing persons (OTSLAP), but at the groundlevel the operations are handled by hoodlums.


3. Basic Premise
Loansharks satisfy the demand of a section of the market. As long as the demand exists there will be loansharks.

Loanshark operation is profitable enough to justify its existence outside the law. Not every loan-collection results in the hoodlums having to take drastic measures. Some clients pay on time.

Loansharks operate at grassroots level, to a certain extent, they depend on the neighbourhood for cover.



So, why would the loansharks want to destroy the "goodwill" of the neighbourhood, and bring unwanted attention to themselves? Surely the OTSLAPs would benefit by instructing the hoodlums to adopt more civil methods to their operations, like:

1. Be more courteous
2. Dont' get angry so easily
3. Don't disturb the innocent bystanders.
4. Set up a commission with the power to punish the errant loansharks.

If the OTSLAPs can achieve that, and get the customers and neighbourhoods over to their side, things might turn out more rosy.

But this is not possible.

At present, the "pool of talent" amongst the loansharks is sadly wanting. There are simply not enough talents to implement and enforce the above pointers. The local environment does not make it worthwhile for any person capable enough to accomplish the above 4 points to enter the loanshark business.

As such the future of loanshark business here is bleak, due to lack of sufficient talent pool. Business will continue because of the demand, but it will still to be a frantic cat and mouse game with the law-makers.