Actually (if you're interested in the context) I'm starting small and working my way up for a potential side hustle/business of short term (less than a month) loans.
Currently I'm lending about $3000 a month (to about 30 people), and tack on a $10 fee for $100 borrowed. So it's only netting me a tiny $300. While I try to learn how things work.
I'm learning that some people are scammers so before I expand to $30,000 a month netting me $3,000 profits, I want to learn about what options I have to potentially get my money back before I make my sole proprietorship, apply for related license (through third party) and get my contracts properly aligned to continue further into this kind of opportunity.