Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period. There are several pieces of legislation that are being considered on both the federal and state level that will sufficiently limit the interest rates charged to low income borrowers for emergency credit services.
Both federal and state governments have cracked down on unscrupulous payday advance lenders, but there is still a place for ethical lenders to serve the estimated 12 million Americans who take out these loans every year.
It is important to consider this target market when deciding on your marketing strategy. Also consider locating your business near public transportation hubs so those without private vehicles -- or those who are considering a payday advance to get their car out of the shop -- can easily use your services.
Marketing Message Customers seek out payday advance loans to fix their short-term financial problems. Marketing materials should emphasize that a loan from your store can fix these short-term problems and keep them from having their electricity shut off or car repossessed.
Customers also want the payday loan application process to be fast and simple. Offer the ability to submit applications or supplemental documents online, or have a fax machine for customers without Internet access. Be sure to include information on your simple application process on every piece of marketing and advertising.
Also, consider offering credit counseling services or information on how customers can rebuild their financial lives. This will both help your customers with their financial literacy and establish your payday advance store as a legitimate financial services business instead of a lender that takes advantage of people in their time of need.
Direct Marketing Direct marketing with posters, fliers and other printed materials is one of the most cost effective ways to advertise your payday advance loans. Design and print these advertisements and distribute them in locations your customers frequent, like in apartment complexes, laundromats and libraries.
In addition, consider assembling a "street team" to canvas the nearby retail areas and neighborhoods with your advertisements. Encourage these street team members to engage potential customers by offering them a commission on every new customer they bring into the business.
However, many customers are unable to pay off their loans at the end of the loan period and instead "roll over" their payday advances an average of eight times over five months. The amount of the discount is up to you, but it needs to be substantial enough to call your current customers to action.
Make the referral tracking process easy by creating referral cards that your current customers can hand out to friends and family.Oct 12, · Essentials of a Payday Loan Business Plan Executive Summary The executive summary is used to give the investors a glimpse of the loan business that you intend to start even before they start going through the other dense materials such as the financial statement/5(2).
Merchant Cash Advance Business Plan Approvals in 2 Min, Apply Now: No credit check payday loans online, the alternative to traditional bank loans, give you quick access to . Payday loan businesses fill a need and are also very lucrative to the owner.
The high return on money that is out on loan can return a significant profit if some care is exercised on whom the loans are made to by a strict loan policy.
Because a lot of small business entrepreneurs are making serious money serving payday loan consumers. By the millions - world wide - consumers need and .
Free Payday Lender Business Plan For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. What Is A Small Business Loan: Fast And Secure [ What Is A Small Business Loan ] Consistently Regarded to As The Best Payday Loans.