Payday loan direct lender income is not so big after all

Do you think that the fast payday loan direct lender service can earn large sums from small short-term loans? The entire industry is often referred to as a thriving business to mitigate the dangers of those unfortunate. Direct lenders cannot completely deny all accusations because they know very well how predatory lenders can name the industry. The good news for borrowers is that there are many safe payday loan lenders who are reluctant to use their income for dinner.

Since the postal service lost revenue from the postage costs, did they intend to enter the payday loan business for reasons that they wished to make up the difference? There may be many lenders observing how their stories will develop. With the experience of short-term loans, responsible lenders can tell you that the entire industry has not made much profit. How much can you earn from a $300 loan? In the financial world, a $75 financial bill is peanuts.

Like any other business, payday loan companies also have overhead costs. These small expenses must add up enough to cover construction costs, employee salaries, benefits and taxes, and some to cover losses. Some borrowers do not do this because some borrowers take their loan obligations seriously and do pay off their debts. Bad debts must be written off among borrowers who have never repaid their loans. Unfortunately, it is believed that certain customer behaviors will result in higher interest costs for responsible customers. Direct payday loan lenders provide services for small loans with high interest rates. Credit card companies are also forced to increase the limits of high-risk customers. Someone must pay for the loss of the company.

Why are you coming down? USPS may not be able to get the revenue they want. On the other hand, with fast cash advances and alternatives to those who don't have a bank account, postal services can at least make some money. They will understand that these customers may take 3-5 months to win them, so they need to wait patiently. The fee will only be profitable after the loan is repaid. Before the interest expense is paid, if the interest expense is above the loan amount, it cannot be considered as profit. If the borrower lends a $375 loan and pays $48 in the next five months without returning the principal balance, it will actually show a loss on the book. These costs are not far from the amount borrowed. At the same time, the postal department will assume business responsibility. Where is the high income?

USPS will have to lend to a large number of borrowers to see any signs of profit. Where will they get the loan? Do they have a profit to risk to customers, or do they need to borrow from the government or the private sector? If the USPS borrows money, they will pay interest in addition to the borrowing costs. It further reduces revenue.

Yes, for those who can't get a bank account for whatever reason, it's a good idea to have more choices. It would be great to have a place where you can cash your salary without paying a large check. The post office will not do this for free, but the cost will be lower. Smaller financial costs will attract new customers. The postal sector may find new niche markets in the payday loan and check cashing industries. Time will prove whether the service fee can support overhead. Once introduced to borrowers who do not believe in debt obligations, how many new headaches will they face? It is best to have an additional responsible direct lender added to the group to help eliminate credit risk. from

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Source by Holly Petherbridge

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