Singing Pig

Looking for some advice really.

Recently started my BMV business rolling, but am also looking into the cash loan strategy to compliment it, inparticular Payday loans.

I am intending on purchasing PAL's manual to give me some guidance although I dont think it gives much advice on payday loans. Has many of you guys gone down this route and if so where is the best place to obtain more info?

Thanks

 Sam

Check out:

http://www.singingpig.co.uk/forums/thread/513403.aspx

for more info on Pal's manual and beyond.

I am also interested (along with many others) in payday loans, so would be interested to see what info people are willing to share!

Hi

 if anyone has any info on payday loans that they want to share it would be appreciated. i'm joining craig / pal in the home credit business in the coming weeks and it seems a perfect partner.

regards

leighton

I am running a home credit business and have been looking into payday lending.

Its a surprisingly different customer profile and  the default rates are quite low compared to home credit. Ive been told the industry average is 87%.

The overheads are going to be higher than home credit as you are going to need a website or a retail outlet. Both with their associated costs. You also need some pretty robust systems for processing applications and sending/receiving funds. 

I do believe it will be a growth area here as people become more aware of them. Only about 200,000 have used payday lending in the UK, about 120,000 with MEM Finance. 

I am keeping my options open as its a pretty logical area of expansion area after the cash loans. I am trying to establish a web presence at the moment and learning about development and marketing as it is going to be the most logical delivery method for this kind of lending. 

Pals manual and my mentoring etc. only cover the Home Credit Industry.

I'd suggest asking guidance from the CCA

http://www.ccauk.org/

Pals manual is also available for the usual price of £300 via Paypal here:

www.home-credit-business.com

Craig

is it not possible not to keep this on a local level to begin with, similar to cash loans? And therefore prevent the need for a website.

Sorry if this is a stupid question but are we allowed to leaflet for custom? Not too sure about trading standards.

There are rules and regs about what you can and can't have on a leaflet, but I've had allsorts through the box from Provident.

It's the canvassing of loans that isn't allowed.

thanks Craig.

But what's the difference between lets say leafletting 5k in a target area and canvassing?

 Does PAL's manual give examples of appropriate leaflets? Probably going to purchase it in the next day or two.

Thanks again