Obtaining state licensing for a payday loan business will be one of the toughest hurdles in getting started and is a pretty long process. Many of states will require some kind of business plan and some states require bonding. The difficulty level also increases with the number of services you plan to offer (payday loans, title loans, check cashing, etc.) Depending on the state, it may be beneficial to start with one service and add more as you go along. State officials will typically evaluate the level of experience you have within the industry when determining their licensing decision and use the complexity of state laws to discourage new entrants. As you build experience, additional licensing or opening new stores is much easier than the first.
For more articles on starting a payday loan business, visit StartupInformant.com