How to Start a Payday Loan Business

Payday loan business is a money-spinning venture. It is one of the small-scale businesses that thrive easily, but there are some basic guidelines to follow, like: reviewing all federal and state laws, building your business from scratch, creating clear and unbending policies in regards to money lending and making your business's security a main priority.

Payday loan is also known by several names like check loan or deferred presentment or payday advance loan.

In simplest terms, payday loan is a short term cash advance which is usually secured by a client’s personal check matched with interest rates. This type of loan is usually considered as small and only on a short time basis. Unfortunately, payday loan businesses, unlike cash checking businesses, are heavily regulated by state and federal laws. Paper work can be murder, but the return of investment is almost 300 fold. Here are some of the most basic guidelines in establishing a payday loan business.

One, you need to review all state and federal laws concerning this business. There are some states in the country that do not allow the use of a brick-and-mortar payday loan business. You can find these businesses thriving in the Internet, though. In any case, one of the most regulated businesses in the US is the payday loan business. If you are seriously considering setting up this venture, it is recommended that you go through all possible regulations with a fine toothed comb. If you must, hire a lawyer to help you interpret laws and maybe help out with your mounting pile of papers. Any remiss in protocol can cost you your license and permit to operate, so be very careful with regards to regulations. One of the easiest ways of learning the pitfalls of these regulations is to ask existing businesses about standard protocol and how to best handle them. This will help you save time, money and a lot of effort.

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It is also recommended that you set up your own shop, instead of buying a franchise or buying out an existing payday loan business. In other words, build your business from scratch. Franchises and existing businesses can cost you over an excess of $100,000 – and that only includes about a fraction of your probable overhead expenses. If you really want to establish your business, perhaps you can start off with finding a suitable location; preferably where businesses thrive and there are very few competitions about. If however, you find a brick-and-mortar business too expensive, you may want to set your sites on the Internet. Internet-based payday loan businesses are actually making a killing these days, but they too are governed strictly by regulations and laws.

Once you have your business “established,” complete with staff and necessary office equipments, the next viable step is to create clear and unbending policies in regards to money lending. Checking your potential client’s ability to repay the loans is one policy you should enforce, because you are after all running a profit making business. Make sure that all your policies with regards to loans are clear and not subject to personal interpretations. Your policies must remain unyielding in order to maintain its professional integrity. Nevertheless, you have to ensure that whatever policies you create are in accordance to all federal and state laws.

And lastly, because you are dealing with monetary funds, it is imperative that you make your business’s security a main priority. Hiring security and other crime detection gadgets are important and more than necessary.

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177 Comments

  • matt said on June 4, 2009
    I am interested in opening an internet based payday loan business.
  • mike said on September 25, 2009
    Please send me all info you have on starting a payday loan business
  • Ximena Schuss said on November 17, 2009
    I am interested in opening an internet based payday loan business in Miami, Florida. Please send me all info you have on how to start this business. Thank you, Ximena Schuss
  • Bell said on January 4, 2010
    I am very interested in starting a cash advance/payday loan business in Louisiana. Could you please send me some information on how to get started also on internet side of it as well.
  • Natasha Elliott said on January 27, 2010
    I am interested in opening an online payday loan and installment loans service in Texas. I want to do over internet first. I would also like to have prepaid debit cards of my own for the company.
  • Ken said on February 2, 2010
    I just recently opened a check cashing/payday loan business in New Orleans, Louisiana, and I would like to know if you can send me info on the laws and regulations dealing with this type of business, and figures on how much you should expect to spend on average for expenses starting up and running the business. Could also send some information on how to get started on the Internet.
  • Samina said on February 10, 2010
    I am interested in opening a pay day loan business in medford, oregon. Please send me all the information on starting a pay day loan business
  • Janet Olbes said on February 18, 2010
    Pls send me info about payday loans. Internet based or not. Very interested!
  • Nick said on February 25, 2010
    i want to start an internet based payday loan business in Orlando, Florida. Please send me information you have on how to start the business. Thank you, Nick
  • Carol said on March 4, 2010
    I am opening a Internet Payday Loan business near New Orleans, La. Any help and information will be greatly appreciated.
  • bob said on March 15, 2010
    I am looking for information about starting a payday loan business in New England. any information would be greatly appreciated. thanks
  • Paul said on March 22, 2010
    Looking for information for an Online Payday Loan Business in Toronto, Ontaio. Please provide all necessary information. Thanks in advance.
  • Max said on April 5, 2010
    I am interested in opening an online payday loan and installment loans service in LA. I want to do over internet first. I need a CRM, The Loan Application System. I am looking for a new partners to invest for Texas and Vegas, I can invest at $500,000. Contact me at bratz.usa @ gmail.com .
  • shanet said on April 6, 2010
    i dont have a business yet but i would like to start a payday loan company or a apartment building. But i dont know where to start and how much this will cost. i need help please email me more information thanks
  • roosevelt realty, llc said on April 14, 2010
    i am interested in starting a payday loan business in the reading pa area in conjunction with my real estate/loan modification business. please email me information i regards.
  • malcolm said on May 3, 2010
    Do you have any experience with an internet based payday loan business? Also, how do you get funding for your loans?
  • Tammy said on July 10, 2010
    I want to start an online payday loan .com business. Do you have any information on how to get set up? Please send
  • Yeahok903 said on August 7, 2010
    I'm interested in starting a payday loan business in philadelphia pa. I just need to know where i should start and what i will need to carry it through. Thanks.
  • mari said on August 12, 2010
    I would like to start an online payday loan in illinois. please send me information about this business.
  • Hernan said on August 24, 2010
    I've been researching for a while and the potentials to open a cash advance store. Can you please provide more information.
  • harrison said on October 18, 2010
    I live in Pompano Beach, Fl. I'm interested in starting a payday loan in FL. Probably start from home via the internet and then move on to brick and mortar. Please provide me with the steps i need order to start this business. Thanks.
  • Jerry said on October 19, 2010
    I am looking to start a payday loan company in texas and was wondering if you can send any information you might have on requirements in this area. Thank you
  • james said on November 30, 2010
    I live in daly city, california, 94014. I want to start a payday loan business online or in a store. can you please send me some info. thanks..james
  • Patricia said on December 14, 2010
    I would like to start an online payday loan business but lack the funds. Is there a way to get the funding in Alabama? I have experience in brick and mortar payday loans. Thanks,
  • King said on December 18, 2010
    I would like to start an internet payday loan business. Please send any info you can to kdstudio@yahoo.com If any readers have any info, please send.
  • james chan said on December 23, 2010
    please send me some info about starting a payday loan in san francisco, ca. need to know laws, and how much money to start. thanks
  • Bob Smeltzer said on December 29, 2010
    I have a prime location in Zanesville Ohio, I would like to know if this as a plausible business to compliment my existing insurance business. Any information would be appreciated.
  • Scott said on December 31, 2010
    I am interested in starting an internet payday loan business in Wisconsin. Please send me information on how to start this business. Thanks
  • Steve Burlett said on January 11, 2011
    I'd like to start an internet payday advance business here in Detroit Michigan. Thank you for any and all information you can supply. Do you have any start up capital leads?
  • kelvin wilson said on January 16, 2011
    i also want to start a payday loan business on the internet. how do i do it.
  • Christine Smith said on January 22, 2011
    I would like to start a payday loan business on the internet. Please send me the information on how to start it. Thanks
  • Helmut . H. Martin said on January 24, 2011
    I actually heard of this pay day loan business,but do not have a clue as to how it works. What is the overall startup capital? how do i go about retrieving my money so borrowed, is it directly through a stop order at work or through a bank? Do i lend the money towards the entire cheque of the borrower or a certain percentage thereof? In Namibia we do have what they call cash loans where they lend you money @30 per cent interest payable at the end of that particular month. Is this perhaps the same kind of business. Please elaborate a bit more.
  • JEAN said on January 26, 2011
    HOW MUCH MONEY DO I NEED TO OPEN A CASH ADVANCE IN FLAGLER COUNTY FLORIDA
  • Donald said on February 16, 2011
    how much do i need to start a payday loan business. am in West Africa, Ghana to be precise and this kind of business is not common. could you please explain this business more.
  • Kathy I. said on February 16, 2011
    I'm in Northern California and want to start an online payday cash advance business. I like to know the steps to get started. Thank you.
  • Yesica Ibarra said on February 19, 2011
    I want to start a payday loan business in texas...please send me the information.
  • John Clayborne said on February 26, 2011
    I would like to start a payday loan business online here in San Diego California could you please send me information about regulations and laws and other things that pertain to this business.
  • Dennis Medina said on April 21, 2011
    I have Accounting office in Dundee,FL. I Would like to get more information about this business.
  • Lucas said on May 3, 2011
    I am interested investing in a payday loan business. It be very grateful, if I am provided with proper information regarding the laws and regulations(Texas)pertaining the business.
  • Dave Saporito said on June 17, 2011
    Cocoa Florida 32926. Please send info on the payday loan business. Thanks Dave
  • JT said on July 5, 2011
    I would be grateful if you provide me information on starting an offshore internet payday lending operation. Specifically, I am seeking to learn how others structure such an offshore business. Thanks.
  • Rashed said on July 10, 2011
    I am interested in more info on owning a payday loan business in Wichita, KS, USA. Thanks RS
  • Kimi said on August 15, 2011
    I am interested in starting an online payday loan business. I've been researching but I'm not sure how to get started. I don't know what software i need or what the laws are in Phenix city Alabama or Columbus Georgia. I am completely lost and every website tells me something different. If you could give me some info I would be so grateful. Thank you for your time...
  • Dan Emmett said on September 9, 2011
    I am interested in opening a payday advance office in either Santa Clara, or San Jose California. Any info would greatly be appreciated. Thanks in advance, Dan Emmett, 831.682.3633, Salinas, California
  • Jarrett said on September 12, 2011
    I am interested investing in a payday loan business. I would be very grateful, if I am provided with proper information regarding the laws and regulations pertaining the business. I am Odessa, Tx, Ector County. Email: Jarrett.Rodriguez@live.com
  • Markita said on September 27, 2011
    I want to start a payday loan business in Dayton, OH
  • Yanaima said on September 30, 2011
    I am interested in opening an payday loan in miami, fl. I would really appreciate it if you can send me all the information i could get to start the business. Thank you in advance. Miami, Fl. Email: kompraky@gmail.com
  • Aslamna said on October 5, 2011
    Hi, I'm interested in opening a payday business in San Jose, CA. I would appreciate if you can give me information needed to make the business grow.
  • grant said on December 3, 2011
    I want to open a payday loan shop or online in Los Angeles, CA. There is a huge market for this. Please send along necessary info that you have and in the meantime, I'll be research the Ca and federal regulations governing this.
  • Patrick said on January 5, 2012
    I live in Shreveport,La and I want to start a payday loan store can you please provide me with some information How much money do you need
  • Tonya said on January 8, 2012
    I live in shrevport Louisiana, I would like information on how to start a payday loan company and a check cashing business and some information on where to get financing.
  • Mauri said on January 25, 2012
    I'm located in Florida, please I will like to have some information regarding law, policies and regulations to start my payday loans business. I'm planning to begin on the internet. Thank you.
  • Kerrie said on February 2, 2012
    I am in Texas and am very much interested in opening a pay day loan store. Can you send me the information and tell me where to start?
  • Cintia said on February 4, 2012
    Can you please email me more information on how much money I need to open up my Payday Loan/Cash Advance business? Please send me any & all information you have. Also, if anyone on here has any information please feel free to email me. Thank you in advance! cintia_loera@yahoo.com
  • Mike said on February 19, 2012
    I am looking to open a payday loan business in Miami, FL. Please send me all the information you have on this. Thanks
  • erika said on March 1, 2012
    I live in the state of alabama. could you provide me with the information on starting a pay day loan
  • Regina said on March 13, 2012
    I am considering open a payday loan business in Birmingham, Alabama. Can you send any information available or an advise? Thanl you
  • Ursula Johnson said on March 19, 2012
    Auburn, New York, USA. I am interested in starting an online payday loan business, please send me complete information as to start-up cash, to final set-up on the internet. Thank You
  • Freddy Lorgorzi said on March 20, 2012
    I am interested in starting my online payday loan business,please send me complete information or any advice,I live in London.thanks
  • Shane said on April 3, 2012
    I am interested in opening a brick and mortar loan company in Texas. Please send info.
  • Zoe cotterill said on May 14, 2012
    Hi, Could you send me the information on setting up a pay day loan company as I'm interested in starting my own. Thankx
  • Gina said on May 14, 2012
    Hi, I am interested in opening an internet based pay day loan company in IL. Please send info. Thank you.
  • Betty Turner said on May 20, 2012
    I am interested in opening an online business for the Illinois. Please send me information. Thanks
  • Octavia Paul said on May 21, 2012
    Hi, I am interested in opening an online internet based payday loan company in Dallas, tx. Please send me any info on starting this business @ octavia.paul@cmc.com
  • Jackie Fountain said on May 30, 2012
    Jacqueline Fountain, I'm interested in starting and payday loan or payday advance business. Please send me more info on starting a brick and mortar payday loan or online internet base payday loan. msjackiefountain@epbfi.com
  • elena chacon said on June 6, 2012
    Hi, I want to open a payday loan business in Florida, USA. Starting in Miami. I am not sure if it would be convenient to buy a franchise or just set up my own business. Please send me info. I case I start my own business I am not sure if I should apply for a License under Part II or Part III of Chapter 560 (Money services Businesses) of Florida Statutes. Thanks.
  • MUSY said on June 21, 2012
    I am interested in starting my own payday loan online business. What do I need for it to be a legitimate business and a successful business? Thank-you for all info. that you can provide me with. Cicero, IL USA
  • Michelle said on June 29, 2012
    I am interested in starting my own payday loan online business. Newark, NJ USA
  • Louis Keith said on June 30, 2012
    I'm interested in starting a payday business in Texas, could you send me the laws and regulations and all the administrative requirements. I live in Roanoke,Texas 76262
  • fatmata massaquoi said on July 12, 2012
    i'm looking to start my own pay day loan in ghana west africa i live in london uk can you please tell me all what i need to know including laws, policies, regulations business strategies, administrative security requirements and amount also how to approach the banks in-order to set dates for money to come out from individual lenders account thanks. fatmata
  • Engy said on July 16, 2012
    I am interested in opening my own cash advance business & if you can provide me with more information about this type of business , I live in Sterling Heights , MI . Thank You
  • Albert Rutledge said on July 19, 2012
    i want to start an internet based payday loan business, can you please send me some state and federal laws on this business,, i'm in the state of california
  • TRACY said on July 24, 2012
    I'M LOCATED IN CHARLOTTE, NC AND I'M INTERESTED IN RECEIVING INFO AS TO HOW TO START MY OWN INTERNET COLLECTION AGENCY... WHAT INSURANCE RULES AND REGULATIONS I MAY NEED.... THANKS
  • jun hong said on August 23, 2012
    can you send me some internet based payday loan business information such as laws, whats the capital normally requires, etc. I also want to build a brick and mortal payday loan business as well. I live in denver Colorado. thanks.
  • Kathy Rene said on September 15, 2012
    I would like to start a internet payday loan business please send me all the information I need to know. PO box590445 Orlando,Fl 32859
  • kunta reasor said on September 30, 2012
    i'm in alabama i have a building and the cash just dont know how to start a payday loan business.
  • Mike Z said on November 18, 2012
    Hard Money Lender in Ct, but lend Nationwide. Would like a blueprint of how to set up a Pay Day Loan Business.
  • James said on December 3, 2012
    Milwaukee wi I would like to know the laws here and what I need to get started po box 18371 Milwaukee wi 53218
  • Julian said on December 9, 2012
    I am interested in funding a start up payday loan online business in the U.S I have an existing company and willing to partner with persons with the requisite technical skills to make this happen. Email me at sizzla3001@yahoo.com to begin discussions. My preferred operation base is Atlanta, Florida .
  • Agustin said on December 10, 2012
    I recently came back from deployment and just got out of the military. I saved a ton of money and I am really interested in starting a payday loan company online. I reside in Charlotte, NC and know that the laws are strict here. But I live about ten miles from South Carolina where the laws are less aggressive. Could you please send me some more information on this, it would be greatly appreciated. Email is :auggie.gonzalez50@gmail.com
  • logan said on December 12, 2012
    please any one who is interested in getting to know more about business i have different types of business proposal if anyone is interested should contact me at sgtlogansmith@yhaoo.com
  • sonia channa said on December 31, 2012
    Downers grove ill, I am interested in starting a internet payday loan. Please send me the information. Thanks!
  • Marco said on January 3, 2013
    I am interested in starting a payday loan business in Austin, TX. Please send any relevant information it at all possible. Thank you!
  • Pedro said on January 27, 2013
    please send information on how to start a Internet payday business in new york and florida.thank you..
  • Dolores Hickman said on January 27, 2013
    Sugar Hill and Columbus Georgia
  • rajan said on February 2, 2013
    I want to start payday loan business in toronto. How to get trained for it.
  • Amdrea Szilagyi said on February 20, 2013
    Hello, I would like to start a payday regular business in Texas could you send all information available about all laws, rules, regulations and licensing of how to proceed. Thank you.
  • Richard said on February 27, 2013
    I'm looking at starting a check cash/payday loan business located in Texas could you please send me all the necessary rules and regulations. This will be a start from scratch business as you suggested. Thanks for the advice.
  • James Smith said on February 28, 2013
    I live in Michigan and am looking at starting this business but using the internet model. Any pointers. Thanks. Jim
  • Gillian said on March 6, 2013
    Located in uk. I am thinking of setting up an internet based payday loan business. may you please assist with any valuable standard documentation I could use and learn from your experience
  • Syrus said on March 8, 2013
    I am interested in starting a payday loan / check cashing business in Dallas, TX. Please send any relevant information it at all possible syruseslami@yahoo.com
  • Joseph said on March 26, 2013
    I am in the early stages of starting an online payday lending company based out of TX. Please send me any info on this that you have. Thank you and God bless, Joseph
  • keshav sharma said on April 16, 2013
    wants to open pay day loan franchise business in Durham like Ajax, Oshawa and pickering
  • Brandon said on May 15, 2013
    I am interested in starting a payday loan business in El Paso, TX. Please send me all the information needed to get started. Thank you.
  • Damian Jenkins said on June 17, 2013
    I'm located in Calera AL. I would like to set up an online check advance company. Please send me any information you can to help me get started.
  • Ray said on August 11, 2013
    I'm interested in starting a payday business in Homestead, FL. Can you guide me in which direction to take when it comes to licensing and/or permits. I operated a licensed correspondent lender a few years back, is it a similar set up? Thanks!
  • asimch said on August 20, 2013
    we are a experience team working since two years on Payday loans system usa , form design also , anyone can test us without advance payment regarding working procedure, training also available email me i am waiting
  • Bobby Sivills said on August 21, 2013
    I'm interested in opening a Payday loan center. both a brick and mortar and online in Virginia Beach, Virginia. Can you send me all the information to get started?
  • Saghe Wells said on August 26, 2013
    I'm interested in starting a payday cash advance business in Wolf Point, MT. I would like whatever information you could send me on this kind of business and the possibilities of flourishing in a small community.
  • Tanisha Brunson said on August 28, 2013
    Sumter, SC. Interested in opening an online installment or payday loan business. Please send me all the information that you can. Thanks.

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