How to start a payday loan business

How do I start a loan business?

I am reaching out to you today in regards to obtaining additional capital for your business. We offer refinancing at the half way point of your loan and in most cases can accommodate your business with a lower rate based on good payment history. We are a privately owned lending  firm and our lending program is focused on the cash flow of the business and not as heavily on the personal credit of the business owner. Here at WBL we have created a process that is streamlined to approve and fund loans within five to seven business days.  The accessibility of our capital, our lenient approval criteria, as well as our fixed daily, weekly or monthly repayment structure makes us a very attractive resource to many small business owners. Your business is absolutely the type of company that we strive  hard to help grow and expand. When the time comes to grow and expand your business WBL would like to be a resource for you. Our process is quick, simple, straight forward and with minimal paper work. We tell you how much you are approved for, the term of the loan, and the daily, weekly or  monthly payment that will be involved. Payments are fixed and do not change during the term of the loan for any reason. Wedo NOT need; A FICO score of at least 700, organized business plans,or credit card sales. These are things that other traditional lenders would require before approval, which may take up to 6 months. At a time when 90% of small business owners looking for funding are being turned away by commercial banks and other lenders,  WBL has created a resource that is very accessible.  Also we are not to be confused with a cash advance operation. Wedo not have anything to do with credit card machines, Visa swipes and so forth. At WBL we issue an actual loan with set start and end dates. A licensed notary comes to your place of business and an actual sales contract and promissory note is  put in place for all our collateralized loans.  The process of sending statements and the application does not commit you to anything at all. This will simply get you some solid figures as far as rate, term and the  amount we are able to loan. If you happen to bank online, the easiest way to send statements is to download the PDF file of each month and attach it to an e-mail.  We are able to lend up to 3 times yourGROSS monthly revenue not to exceed the net equity in collateral being pledged and our loans range from$5,000 to $2,000,000.

How do you start an online payday loan business with $150k? How profitable is an online payday loan business and is it realistic to expect 7 figure revenues in just under 10 years of operation?

Strt?Do you know that the store-front and online payday lenders are OWNED BY THE MAJOR BANKS?They are leaches on society, draining funds from its poorest and most vulnerable members.You become one and you will soon find the wrath of the banks, aided by the senators and laws they write to protect the payday lenders predatory bahaviour.Beware of which garden you go to play in, innocent you…The Predators’ CreditorsYou have money to invest? Go to the nearest investment house.

How much money do payday loan business owners make?

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How would one go about investing in a payday loan business?

You wouldn't! Cancel that plan immediately! Payday loans are predatory in nature and states have begun to enact laws prohibiting them. Think about it, making the most egregiously priced loans, to the least loan-worthy people: there is no sustainable business model there.

How viable would a rent to own or payday loan business be that didn't charge predatory interest rates?

The interest rates are not predatory. They follow the same state interest rate limits as other loan businesses, and in fact are generally considerably cheaper than pawn shops charge.A typical loan is $200 for two weeks. A typical default rate is 8%. It costs money to process loans: you need to pay rent, salaries and other expenses on a business and evaluate each loan. That typically costs about $20 per loan.Say you charge 15% interest for the two weeks, meaning $30, plus a $10 origination fee. You’re asking for a total repayment of $240. But 8% of the time you won’t get it, costing you an average of $19.20, meaning you collect on average $220.80. But you paid out $200 plus spent $20 on expenses, so your profit is only $0.80.Cynical people call this predatory by converting it to an annual percentage rate. If $200 goes to $240 in two weeks, it will go to about $23,000 in a year, an annual percentage rate over 10,000%. These people are not trying to help the poor or communicate accurate information, they’re scare-mongering for their own purposes.The annual percentage rate is silly. It has no relation to the business profits, nor to the situation of the borrower. Getting $200 today to pay a fine that will double if you’re late and cause your license to be suspended or even send you to jail if you ignore it can be well worth $40 in fees. Paying for a car repair you need to keep your job or make a lease payment to avoid repossession and large fees can also be worth it.If you want to help working poor people, don’t cut off their only options, ask why they have such acute need for cash in the first place. Stop government from ruining people’s lives over petty infractions designed to raise government cash rather than maintain public order. Create better jobs that provide enough income to cushion occasional financial shocks and don’t disappear if someone has a little trouble. Make sure necessities are available to everyone without complex and arbitrary paperwork. Improve financial services available to low income people. Eliminate regressive taxes.That said, there are some unethical people in the payday loan business. There are people who exacerbate their financial difficulties by inappropriate use of payday loans. But both those things are true of all financial services. There’s no reason to single out payday loans as predatory, nor to use absurd calculations to do it.

How do I raise capital for a profitable payday loans business based in the Philippines?

Sounds familiar!My organisation is a big market. Most of the employees (including myself) had been engaged into it either as a borrower or a lender. Due to my extreme needs I had to give my ATM as a collateral for the next payday payment. Usually, the interest goes between 3% to 5% a month and by the month of December (usually 1st week) an inventory was being made to check if the collection(s) and profit were properly and systematically distributed.At first, I disliked borrowing money but I have no choice since I have been bombarded with series of losses and medical issues in the past. I wonder how would it be if I am on the other side of the coin!

What are the typical profit margins for payday loan businesses?

Typically, they average in the 5–10% range. Many have fairly high internal loan costs relative to a standard lender, the market is extremely competitive, and the storefront costs are usually relatively high relative to revenue per store customer. That’s reported by the publicly traded lenders, so there may be substantially higher or lower margins depending on the market, regulation, size, scope, location of the store, etc. It’s somewhat counter-intuitive based on the insanely high APR’s on their loan terms. They are typically a lender of last resort so often you are dealing with noncollectable debts, which greatly affects your bottom line. A large portion of their lending does not revolve, which is where the higher margins kick in.