I am interested in starting a payday loan service - Is it as people tell me, so risky I may lose?
People are telling me that the percentage of non-payment is so high, that it wipes the potential earnings. I would like to hear from experts in this arena, what is the truth.
Only if you wish to sell your soul at other expense. More and more states are making it illegal or very difficult to run such a business.
I agree with Mr. Bishop. There's a different between what is legal and what is right. Why not aspire to something beyond whether or not you make money off the less fortunate?
These are unsecured loans, needs high interest rate to cover-up anticipated losses. Also, occasionally you need services of bouncers for recovery.
as much as I agree on the comments below regarding ethics and taking advantage, there was a time in my life when I myself had to resort to a payday loan. In my humble opinion, this business can be helpful and profitable at the same time. First, just make sure your interest rates are below the industry standard. You can catch up on the profit by-volume. Second, to minimize risks, there must be a way for you to ensure timely payments. (I can elaborate later on)
I have handled a contact center who offers financing, although it's for small and medium businesses, the same principle applies. We offered way-better rates so we can help while making reasonable profits. And while some people think it's taking-advantage of someone else's needs, who else would help them if not the financing companies? Bank loans will cripple them further because of the interest rates. I've heard lots of stories (first hand) where a loan, even with interest, helped save if not further grow their business.
Thanks so much for all the responses. And of course, I do my homework... Department of Banking and Finance and I already met a couple of times. Anyways, the majority of you bring up good points. I appreciate your input.
Only if you wish to sale your soul at other expense. More and more states are making it illegal or very difficult to run such a business.
I can help. This is not a straightforward business set up. Very profitable but needs to be properly set up in first place
Well, in every business there are pros and cons, so is the loss and profit. However, there one thing know as calculated risk taking which may have some loss superficially, but because this is cash business you should be prepared for this gamble. Most of the time the loss is covered by the insurer and the banks also know about this concern.
I am not more knowledgeable in this however, I have some of my business customers who I provide a security to their business they may know little bit more. I would suggest you do some research on the business in depth and then make your mind on whether to proceed with this risk and see a safer business which does not exist. Business is risk from day one and that is why people don't venture unless they are prepared to take that risk.
Off course it is risky, as per my marketing knowledge you can do refinance program , even I can help you in that case, reach me Skype: sathishkumar.kasinathan
PayDay loan people need to rot in hell. Figuratively speaking.
Find a different business.