With modern lifestyles becoming ever more financially orientated, consumers are constantly looking for ways to keep their funds ticking over. With debt levels seeming to ever be on the increase, more consumers are looking out for opportunities to provide themselves with credit. However, many financial providers have been tightening their belts of late, with research carried out by price comparison site MoneyExpert.com indicating that many providers are more reluctant to offer people credit cards, as a result of having their fingers "badly burnt with bad debts".
Interesting Payday Loan Industry Facts...
- In 2005, payday loan analysts estimated that there were approximately 22,000 payday loan outlets conducting $40 billion in loans (Community Financial Services Association of America;
- In 2000, the payday loan industry consisted of 7,000 outlets with $1.4 billion in loan revenue. Sales grew from $10 billion in 2000 to $40 billion in 2003, revealing the extensive nature and profitability of the payday loan industry;
- According to The Community Financial Services Association "payday advance can sometimes be a better financial decision (for consumers as it) is quick and convenient".
In such an environment, and particularly for those people who need to access funds in between pay days but who have a moderate credit record, organizing a payday loan may be a popular solution.
Consequently, setting up one's own payday loan franchise arm may prove to be an advantageous move. The financial services industry is burgeoning in many parts of the world, with potentially lucrative returns on offer. Finding the right franchising avenue to take up should not prove especially tricky. Experts currently estimate approximately 1,500 different franchise business companies are operating in the US, with a further estimated 750,000 franchise businesses. It is not hard to see why choosing the right franchise opportunity is difficult, with such an array of choices on offer.
You needn't be of a mathematical bent to make a success of a payday loans franchising opportunity but it may help. A suitable opportunity for those people who wish to run their own business, the franchisee can benefit from using the brand identity of a larger firm to offer their own service, while businesses can benefit from the local knowledge of a franchisee.
The actual process will involve lending a set amount, usually between £80 and £1,000, to those people in need of a short-term financial fix. Consumers will send a cheque to the payday loans franchisee and get a smaller amount back in return. On their next pay day the franchisee will cash the cheque and get their money back as well as the interest payment.
With payday loans franchises are usually taken up by people with poor credit histories, from a franchisees point of view, such a position will make them an attractive proposition from a number of consumers looking for an extra cash injection. However, prospective franchisees should also appreciate that on a high interest loan scheme such as these; consumers can fall into payment arrears more readily, making the reclaiming of loans a more problematic process potentially.
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