Thebusiness is one of the largest loan industries in the whole world. The industry’s rise is actually the result of the ever growing popularity of among many people. It has been noted that payday loans, also known as deferred presentment or cash advance personal unsecured loans are considered as small and short term loans that allow the people to obtain money against a post dated check. Those thinking of starting an online payday loan company are entering a lucrative market with a lot of rules to follow due to state laws.
The easiest way to be a part of the lucrative Payday loan industry is through affiliate promotion for established payday loan companies. Payday One is the top rated payday loan company on the web and they offer you $25 for every customer that you refer to them. Some affiliates can make a very good living just from this method and it requires only a website or marketing via pay per click. No store or the headaches that come with running a physical company.
There are indications of the growth of the payday loan industry. Perhaps one of those is the fact that in the State of Wisconsin alone, the Department of Financial Institutions (DFI) accounted 839,285 payday loans totaling $200.2 million just in the year 1996 alone and is much larger 10 years later. Along with this, the Department of Financial Institutions has reported that there had been an increase in the number of licensed payday loan lenders in the state. In addition, a recent report came out regarding the payday loan industry in the State of Arizona, which maintains that the loan against the paycheck the customers haven’t yet earned generally carries a 15 percent fee. And, on the average payday loan of $300 for eight days, such 15 percent equates to an Annual Percentage Rate (APR) of 459 percent.
As the payday loan industry continues to grow, check cashing and payday loan shops are popping up like mushrooms. Several stores are advertising payday loans on their windows and notably, payday loans are even part of some advertisements on the radio, television, the Internet and even the email. Many people are starting online payday loan companies and there are even affiliate and franchises which handle all the financial and technical aspects for you.
So that it can be relatively easy to start a payday loan online business, if you work with an established company
The payday loan industry claims that their payday loans generally serve an under-served market due to the fact that neither consumer finance firms nor standard banks are interested or willing in originating payday loan amount of $100 to $500 and up to $1000 or $2000 non-secured loans. But opponents say they take advantage of people who are in desperate need of quick cash, and they also can lead people into a cycle of debt hard to get out of.
If you are interested in starting your own payday loan business, you’ll need to follow the regulations in each state, as most states now have payday loan laws which it is believed must be followed even by online lenders.