By Mavis Toh

ONE-man shows do exist among loan sharks, contrary to the impression that they run as well-oiled syndicates with many layers.

Lone operators dig into their own pockets for capital, suss out clients and harass debtors, and have sole dibs on the profits made.

Those in the business say all it takes is $30,000 to $50,000 to set up shop. No other barriers exist.

But these one-man operators do not go into the business blind. They usually have links to illegal gambling dens or have previously worked in loan shark syndicates.

They are picky about their clients and lend only to those they know and trust. This makes recovering the loans easier.

The interest rate they charge, 20per cent, is no lower than the syndicates', but the loan amounts are smaller, usually not exceeding $5,000 per debtor.

An illegal football betting operator said: "Many are partners in illegal gambling businesses, and know all the gamblers. They hang out at the dens, and lend to those who lose money."

Unlike the syndicates, lone operators know who their debtors are and often meet them face-to-face.

But they insist that their clients have guarantors.

The loan shark uses a mobile number, usually registered under a foreign worker's name, to conduct his business.

When debtors fail to return money and start ignoring his calls, he will despatch a runner or two to do a spot of harassing. If the debtor still cannot pay up, the loan shark makes him sign up for a cellphone line. The phone is then sold to recover part of the loan.

Over time, these one-man loan sharks tend to team up with one or two others doing similar work to expand their operations, pooling their funds and growing their network of clients.

A former loan shark said: "It is a sure-win business. With the interest rate, even if four out of 10 clients don't pay up, loan sharks still make money. 

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This article was first published in The Straits Times.

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