Pay Advance: Investing in a Pay Day Advance Business

By: Jone Player
Are you considering investing in a pay day advance business? Perhaps, at one time, you were one of those customers who needed a helping hand to pay off a short term expense and now you have a sound surplus of capital to invest. Or perhaps you're looking for an easy start-up company. Before you begin, understand you will need to navigate legal intricacies so it's a good idea to have a trustworthy lawyer or financial adviser help you get started. Another smart decision would be to buy a franchise of an already established and successful pay advance company.

Typically, it costs from ? 25,000 and ? 50,000 to buy a pay day advance franchise. You will also be required to pay about 8% of your gross sales every month. However, some say that starting an online business may cost as little as ? 1,000 to get started. At the end of the month, you will likely make somewhere in the ballpark of ? 30,000 in returns when you're getting started. The business of pay advances is growing significantly. In the US, for example, the Wisconsin pay advance companies brought in $200.2 million in one year.

Remember that for a retail payday advance operation, location is key to marketing! Most people will go to the one closest to them or stop when they see one on the street. For an online pay advance business, you will need a team of web experts to work at search engine optimization, copywriting and advertising. Affiliate marketing is another smart promotional idea. Many payday advance places offer ? 25 for every customer referred, which can significantly haul in business and decrease marketing expenditures.

Pay advances aren't meant to be long-term solutions, which is why many investors like the idea. They're sure that their money will come back within a few weeks' time. Yet, there is a certain amount of risk involved. Some people borrow with no intention of paying back - especially since there's no credit penalties or liens on their assets. Yet by keeping interest rates high, you're not likely to encounter too many of those problem borrowers. It's best to have a good lawyer on hand, regardless.

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