Financial Services

Payday Loans

Payday loans are unsecured short-term loans for a relatively small amount of money, usually under $500. A borrow completes a simple application for a loan and is typically required to provide supporting documentation including proof of employment, a personal checking account and they must be at least eighteen years of age.

Approved borrowers receive their cash within minutes, in exchange for providing a post-dated personal check that is held, usually until the borrowers next payday typically up to two weeks. There is no credit check so almost all applicants are approved, making the payday advance a popular method of securing short term cash for those with no credit or bad credit. The lender retains some protection by screening the borrowers through TeleTrack that identifies particularly risky borrowers.

Personal Loans

Personal loans are an ideal second loan product for your customers. In most states proplr can only have one outstanding payday loan at any point in time. By offering small unsecured personal loans you provide a second financial resource for your customers who need one. Typically you will start a customer with a $200 loan and let them establish themselves as they repay it on time and earn the right to larger future loans.

Auto/Title Loans

Another source of a second loan is the automobile or title loan. Customers who own their vehicle outright and have the title present you the title as collateral for the loan. These are conservative loans, usually for a maximum of a third of the value of the vehicle up to $5,000, so the loan is well collateralized helping to ensure that the loan will be repaid.

Earn High Rates of Interest on Short Term Loans and Check Cashing

Federal and state laws limit the fees that you can charge your customers. Here is a sample of some of the states in the Southeast.

Payday Advances
  Permissible Loan Permissible Interest Rate Min/Max Term
Florida $500 10% + $5 Fee (390% annualized) 7-31 days
South Carolina $300 15% of the check (390% annualized) 31 days
Alabama $500 17.5% (630% annualized) 10-31 days
Louisiana $350 16.75% + $45 max fee 60 days
Check Cashing
  Government Check Personal Check Payroll Check
Florida Greater of 3% or $5 Greater of 10% or $5 Greater of 5% or $5
South Carolina Greater of 2% or $3 Greater of 7% or $5 Greater of 2% or $3
Alabama None None None
Louisiana Greater of 2% or $5 Greater of 10% or $5 Greater of 10% or $5