INVESTMENT: Raising Money For (((Payday Loan))) Business

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Positive outlooks on the Payday industry:

>Payday lending offers returns equivalent to organized crime.

http://www.sltrib.com/news/4785118-155/taking-out-a-payday-loan-in

>Payday Lending booming, and other goodies of information.

https://www.washingtonpost.com/business/get-there/the-vicious-cycle-of-payday-loans/2015/03/27/4ff7bec2-d3e1-11e4-ab77-9646eea6a4c7_story.html?utm_term=.c62c0afaa0ce


>Information about the business

Location: Miami, Florida
Miami Population:6.70 million
Florida Population: 20.27 Million

More Promising prospects for payday businesses in Florida

>Median IQ one of the lowest in the states in the US

http://s3.amazonaws.com/movotoblog/2014/06/tweet-reading-level/state-iq.jpg

>Horrible salaries, high cost of living, impulsive people who are quick to get into debt

http://www.miaminewtimes.com/news/miami-named-worst-city-to-live-in-america-which-is-the-wake-up-call-we-need-8561790

>Well regulated law on payday loan and commercial lending

http://www.flofr.com/StaticPages/PaydayLenders.htm

You trust 4chan to starti a business ?

>>1717899
>online

in real life broke people don't have internet.

>>1717899
I hope you are a pretty intimidating guy and not a DYEL mode weeb because you are now on the edge of organized crime. The money looks easy because of the costs involved with collecting debts, I would not be surprised to see you run into organized crime types within 3 months of operation.

I deliberately avoid businesses where I could come into contact with organized crime (sex industry, pawnshops, etc)

>>1717899
Don't take out the loan, invest in CVM+ and you'll have money in no time.

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>>1717915

>I have a business idea
>I start a legal corporation to pursuit this business
>I put my own money into it
>I raise funds from others by giving them shares (ownership) in the business in exchange for capital.
>I execute the business idea.

Is not really a question of trust. Is just a very straight forward proposition

>>1717899
>National Database of every payday customer currently taking out a loan
Is not true. That's why they ask if you have any payday loans taken out currently on the application.

>>1717984
>>Payday lenders can sue in Florida and have your wages GARNISHED.
Also not true.

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>>1717946

Common misconception.

>you are now on the edge of organized crime.

Payday lenders don't really act like organized crime for a very simple reason: they don't have to. Most payday lenders use completely legal to collect their loans.

In fact payday lenders aren't that different from "time share" sellers. They make you sign a very legally advantageous contract, then they use the full power of the law to collect what they are owed.

More than organized crime payday lenders resemble lawyers and timeshare salesmen than mobsters.

Also as I said:

With the use of collateral possessions for loans.
Bank information (so you can charge individuals directly even if it causes them an overdraft).
Legal impunity to sue

Most payday lenders simply don't have to act like mobsters.

The business is a lot like regular lending institution.

I think what you are probably thinking of are debt collectors (people who buy distressed debt at a very cheap cost and then collect by "any means necessary"

>>1717984
I made the mistake of saying national when the word I was looking for was statewide.

All payday loan borrowers can be looked up in a statewide database, which is pretty useful to mitigate risk.

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>>1717986
Don't just say, "is not true". Some context to know where you get your information from and what you know about the subject might help.

With that said is generally known you can get sued in small claim court over a debt in almost any state.

Here is a somewhat related example that payday lenders can indeed sue and have your wages garnished.

They have to offer proof of course

>>1718014

Forgot links

http://debtor-creditor.lawyers.com/ask-a-lawyer/can-online-payday-lenders-sue-me-507850.html

https://www.avvo.com/legal-answers/defaulted-on-internet-payday-loans----what-will-ha-1224090.html

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>>1718017
>>1717986

http://www.consumerfinance.gov/askcfpb/1609/can-payday-lender-garnish-my-wages.html

Usually a payday lender can garnish your wages only as the result of a court order.

What was your source to say it wasn't true
if I may ask?

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I don't want to be "that guy" but didn't you just describe Amex, Visa etc?

>>1718035
>but didn't you just describe Amex

Correcto compadre. Precisely like Amex. Except No 10k/Month in overhead and none of their in-store services like offering cash advances

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>>1718058
but they do...? You can withdraw money (in my country cca 250$ for 5$ fee).

I don't think its a bad idea per se but you can't really skim the milk with this one.

Amex, Visa & co. will take 99% of customers with good(ish) credit score and you will get bottom feeders.

I don't think you can collect that debt with nothing short of a baseball bat becouse justice just don't care about few hundred bucks they owe you.

>>1718067
>Amex, Visa & co. will take 99% of customers

That is a bit of a theoretical but let assume I agree the premise.

As a much smaller payday lender I don't need (nor could I service) 99% of Amex customers. In fact, as a small lender, just being able to compete for 1% of Amex customer's is probably too many for the business to handle.

As to the quality of customers, that is the problem with hypotheticals.

Let's have a look at demographics of payday borrowers:

http://cfsaa.com/about-the-payday-advance-industry/customer-demographics.aspx

>Majority earn between $25,000 and $50,000
>Middle-Educated
>90 percent have a high school diploma or better
>54 percent have some college or degree
>Young Families

>53 percent are under 45 years old (only 9 percent are 65 or older)
>Majority of customers are married
>63 percent have children in household

Literally the pool of potential borrowers is huge. This is why Amex cannot even satisfy the whole market and why other franchises/mom-and-pop payday lenders can also survive.

>I don't think you can collect that debt with nothing short of a baseball bat because justice just don't care about few hundred bucks they owe you.

How so. I already went over all of the tools available for payday lenders when it comes to collecting.

>>1717899
Not to bust your bubble but payday-loan lenders are about to be dissolved by the federal government. It's about to be classified as predatory lending and usury.

>>1718207
Source?

>>1718187
Once again, its not a bad business idea, its the customers that are bad.

"Normal" people won't get a payday loan from some strange company online founded in 2017. First they will try Amex then Visa then family then friends then you.

The people that come to you are not people you want for customers. If have 100$ to pay you back, they will use it for more meth.

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>>1718220

"Normal" people won't get a payday loan from some strange company online founded in 2017

And yet they do. Don't ignore the statistics of the customers of the payday loan industry. Literally a lot of everyday people meet those criteria. Maybe they aren't that smart but that is a separate issue.

Plenty of people are willing to put their Social security, bank account information and other compromising information on the website of a company founded in 2017, payday loan customers do that all the time.

Are you from Florida?

>>1717991
What our friend was referring to was the *tendency* for some industries in that sector having a higher historical correlation with OC elements. I would think the online aspect would decrease your risk considerably, particularly if certain countermeasures were taken.

>>1717899
I can do the web development part of it for you for a 5% stake. I can say that if you're hoping to get a decent looking website for $500, you're simply not going to get one.