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Old 07-20-2019, 06:56 PM
 
356 posts, read 195,851 times
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Payday Loans:

Would it be profitable to open one up?

Which locations do they do well in ?
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Old 07-21-2019, 05:50 AM
 
Location: Cebu, Philippines
5,881 posts, read 2,559,073 times
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I understand that most are owned by well-entrenched syndicates, that can be very persuasive in discouraging friendly completion.
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Old 07-21-2019, 11:24 AM
 
498 posts, read 162,010 times
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In my early years, right out of college, I spent a few years working with the poor and the ghetto. Never again will I deal with that market.
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Old 07-21-2019, 09:07 PM
 
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Is it mostly just predatory lending that hurts the poor and desperate. I see these pay day loan places in the minority areas of NYC all the time. Here is vid that says there is more payday loan places than McDs, which I do not believe.


https://www.youtube.com/watch?v=PDylgzybWAw
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Old 07-22-2019, 06:51 AM
 
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I'd have a hard time with owning a payday loan store because I'd feel bad about the circumstances of all the people coming in, whether it was bad luck or bad decisions or both. I'm sure you hear a lot of sad stories.

One practical point: regulations keep changing. There's certainly the "ripoff" aspect and there's also the argument that payday loans provide credit to people who have no other options, but some communities have tried to ban them and states have put limitations on how they can do business, including interest rates charged and "rollovers" of balances into a new loan. So, the laws could change and make a profitable business unprofitable.
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Old 07-22-2019, 09:05 AM
 
Location: Tucson, AZ
3,765 posts, read 6,187,153 times
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I worked at one for 3 days in the early 2000s. During those 3 days, we received two faxed memos during my shift: one co-worker from another branch was shot and murdered near Dallas, Texas and another was stabbed at a location near Cleveland, Ohio. I gave a concern that I would like to see security hired and when that request was turned down, I quit. I wrote a blog post about my experience and the family of the deceased girl in Texas would contact me many years later and thank me for ripping this company (I'll leave them unnamed now) publicly for their lack of protection.

I don't know how the industry has evolved, but I think my first concern would be security. Don't put innocent people trying to make a living in danger just to satisfy profits.
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Old 07-24-2019, 09:37 AM
 
Location: North Idaho
24,650 posts, read 32,288,170 times
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I would think it would be safer to open a pawn shop. That way when the poor can't pay you back you have the collateral item to sell.


I haven't looked into a payday loan shop, but at the interest rates they charge, they are probably making money... if they can get their clients to pay them back and if they don't get robbed too often. A place with a lot of cash in a poor neighborhood is going to be a very tempting target.
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Old 07-29-2019, 10:17 AM
 
4,991 posts, read 2,288,986 times
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I used one years ago as a broke kid. It was pro rated so if I needed money for a bill 4 days before payday taking a loan out was easier than paying fees.

Place was pretty handy. Most of my interest amounts at that place were literally like $3 or $4.

That type of use probably represented .00000001 of their customer base. Couldn't believe they didn't have a gouge in place for predatory borrowers like me. I probably cost them money every time I walked in the door.
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Old 08-01-2019, 06:00 AM
 
71 posts, read 51,624 times
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Quote:
Originally Posted by mrxalleycat View Post
Payday Loans:

Would it be profitable to open one up?

Which locations do they do well in ?



Might be a good idea to work at one of these places for a while. Get to know the business and make sure it is something you want to pursue before you invest your money.


Good luck
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Old 08-01-2019, 06:12 AM
 
Location: Wonderland
52,759 posts, read 41,548,767 times
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Hey, you could open up a call center while you're at it!
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