The easiest way to get started into the payday loan business is to buy a franchise, especially if you have no industry experience. This is because the franchise has built a business model that works. With a franchise you can call other payday loan franchisees to see how the company is to work with, have a strong marketing program out of the gate and developed procedures that help you be more successful at running your payday loan business. Some of the payday loan franchisees that have built a decent reputation are FastBucks, Ace Cash Express and Cash Plus.
The downside to a franchised business however is the additional upfront costs and ongoing royalties over starting one on your own. Expect a one-time franchise fee of up to $75,000 and royalties of up to 10% gross sales. This is in addition to build out costs and upfront capital requirements.
The choice of starting a payday loan business from scratch or getting into a franchise is not an easy one, but the advantage of a proven business model and marketing support is worth a lot in this business, especially if you do not have a lot of experience in this.