My response:
Have you thought carefully about your business plan; e.g., how much are your memberships (yearly, biannually, monthly), and how the "loans" are supposed to work; e.g., who pays for postage or other delivery charges?
Also, let's take a potential worst case scenario - -
You have one copy of "The Last of The Mohicans." You have two members, one in California and the other in Florida. The Florida member has the book, and the California member wants to borrow the same book. The Florida member has, after repeated attempts, failed to return the said book. The California member is threatening cancellation and wants to rescind their contract with you.
What are you prepared to, or going to, do about the Florida member, the missing book, and the California member?
Another scenario - -
After months of begging, cajoling, threatening and crying to the Florida member, the Florida member has returned the book to you. However, you come to discover that the Florida member's 5 year old has ripped out pages 127 through 145. Obviously, the book is now ruined, and you can't possibly send the same to the California member.
What are your plans in that regard?
How far along are you in your thought processes in this endeavor?
IAAL