Payday Loan Franchise

Recently, I had a customer that got into the payday loan business through a payday loan franchise. He opened a second store and decided that the franchise, outside of sounding like a good idea, really was not.

First, a payday loan franchise should give you a brand advantage over other lenders. Unless you can get a recognizible brand (Advance America, Check n Go, Check Into Cash, The Cash Store, a few more), why would you buy a franchise?

The payday loan industry is not like the fast food industry. Every loan, customer or location are not the same.

So is it worth it to buy a payday loan franchise? I don’t think so.

I can’t say no, without making a suggestion. So, what should you do if you want to get into the business? There is no black or white answer, but you want to work with people or organizations with a reputation.

Personally, I think you would gain more “doing it”. What I mean by this is going to work at a payday loan operation. Now, you should not deceive them. Find a mid size operator outside of your demographic and make a deal with them. You may have to sign a non-compete within 10 miles of a list of locations (current locations).

Work for free. Committ six months to working part or full time. The operator will save a few bucks and you will get the invaluable experience you need. There is no substitute for doing it. Besides, if you have good character, you may get an investor or make a friend in the process.

From my experience, serving the payday loan industry, is that the best business people make the most money. This starts with management. So, before I would pay a payday loan consultant $20k, I would get a business and management consultant.

My name is Nick Sparagis and I’m one of the owners at We offer payday loan software.

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