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Payday advance lending is a growing business because the direct payday lenders provide their consumers alternative fast lending options which is much needed in today’s economy. If you are looking for start a payday business, there are things we recommend you to consider:

DO NOT START with internet only lending - The internet is over saturated with payday lenders who are spending millions a year on their search marketing campaign. It is OK to have a website but do not rely on it much. Also online loan defaults seems to be a lot higher and collection for online loans are much more difficult. In addition to all these facts, different stats have different laws and regulations. For example in some states such as California, total payday loan including fees and interest rate cannot exceed $300. That means that for your website you have do have different type of rates, calculations, and application which makes it tremendously difficult to develop and manage.

Learn Your State Laws - Starting local is a great way to go but you must understand that payday lending industry is one of the most regulated industries in the financial sector so there are many licensing, rules, and regulation you must learn and implement in order to be able to do a business in your State.

Learn and Implement an ACH Processing System - ACH processing systems help you fund and deposit your customer’s loans to their checking account.

Contact Banks - Contact all major banks to learn about how they work with payday lenders. Each bank works differently, has different setup, and different policy.
Learn about collection - Payday loan collections are a lot different than traditional loans so learn all about them, and rules of engagement and your States allowed and disallowed collection methods.
Educate Yourself about the Payday Loan Industry - Research online to learn all about the payday loan industry. There are some good payday loan resources available online.