Hi guys, I'm new to this forum, but hopefully I can join your ranks as a small business person in your community :-)
I would like to start a Payday Loan business in California - I have the capital required, but I don't have a great knowledge of the day-to-day operations of one of these establishments. I have a decent knowledge of the business model and I have calculated returns, costs, risks, etc., but I don't really know where to start. Does anyone here have experience with Payday loans, check cashing, title loans, etc.? I have visited a few brick and mortar stores, and they have other services available such as bill pay, pre-paid debit cards, etc., does anyone have experience with these as well?
Basically, I need advice regarding:
- Where to start
- Day to day operations: how much money should I keep on hand? am I screwed if I'm not fluent in spanish (I speak a little, not much though)? should I hire an employee to help me out, or just start by my self? What documents do you usually collect from your clients before giving them loans?
- Software: What company has the best software
for this type of business? Can you automate collections, like if
someone doesn't pay can you automatically deduct the amount from their
bank account? How much of this business can be automated and at what
- California Certification: I have looked up most of what is required in California for becoming certified for this business, but is there anything I should know before starting this process?
Thanks for your help everyone, I hope I didn't go on for too long, but I appreciate any advice you can give me!