Payday loan-check advance business questions.

[Rollcenter]

Anyone have any first hand knowledge of the payday loan/check advance industry? This type of business thrives in a poor economy, and your not going to get much worse than the Appalachian coal fields right now.

Seriously contemplating opening one in my area. Researched for months, have presented my lawyer with my basic business plan but still looking for someone with firsthand knowledge.

 

[CobyRupert]

They're usually run by scumbags who prey on society's most vulnerable and desperate.

 

[Rollcenter]

They're usually run by scumbags who prey on society's most vulnerable and desperate.

Probably a correct statement.

However the return on investment is enough to make me consider opening one.

 

[brain55]

The banks usually require quite a bit on deposit in order to service the account and keep cash on hand for availability. My FIL had a friend that was in that business and they needed $500,000 in the bank or the bank would charge them ridiculous fees for cash.

 

[CobyRupert]

Ever consider selling drugs or prostitution? The return on investment can be very good too. Doesn't seem like you have a problem with any moral or ethical considerations, but perhaps the legal considerations would be the show stopper?

Reminds me of the excuse the government is using to justify spying on Americans, or excuses other Reichs used in the past: "Hey, there's nothing wrong with what we're doing, it's perfectly legal".

 

[fordmantpw]

Give the guy (or gal) a break! Maybe he's one of the good guys, and is going to loan the money at a lower rate? Who knows, but let's not jump to conclusions and condemn him!

 

[murphy1244]

In Ohio all you can charge is 8%

 

[Rollcenter]

He does not bother me in the least, I get it, he does not agree with the payday loan industry, that's his choice. He don't have to use one if he chooses not too, But for many, in today's economy, this type of service is a necessity.

Not ALL people in this, or any type of business are bad people.

 

[greasemonkeyok]

It's a good business until you get robbed by your cashier's boyfriend. Then the next one cashes a bunch of forged checks.

 

[7879fordman]

Can tell you this the one that was across the street from my business went out of business . And now there's not one in town . So that says they may not be to great a idea .

And they was a pawn shop also . There's not one pawn shop left in my town .

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