How important is it to have Capital available for your payday loan business?
When I started out (1999), I took over an existing payday loan/ check cashing store. I had no idea of how much money it would take. After taking over the location, I had some savings left, and my budget was to put out an additional $10,000 in new business every 6 months. Within 3 months of being open I had used up all of my savings, my credit cards, and had taken out loans on my cars.
I was turning away 4 out of every 5 customers. It killed me to turn away extremely qualified people. I would tell new customers to come back on Saturday, as I was waiting for the revenue from the fees.
I went to the local bank, and they flatly refused to provide me with funding. The didn’t like the business, they didn’t like that it was a new business. And they probably didn’t like me either. (Although I can’t imagine how that could happen.)
Having no choice at the time, I took on an investment partner. Now, I’m not complaining. With HIS capital investment, the one store became FIVE stores. From the revenues of the company, we were able to acquire other businesses. We bought Real Estate. Over the course of our 10 year relationship, we made a lot of money.
Going back in time, if I had an opportunity to get that initial $150,000 from a BANK, instead of a partner. Wow. I would have kept over $2,000,000 of NET profits in my own pocket. AND I wouldn’t have spent a year FIGHTING for control of the company I started.
Partnerships are great when they are working, but it’s HELL when they’re not. IF this program empowers YOU to move forward without driving around and begging for money? Wow. It’s life changing!
The biggest challenge in business is to obtain ENOUGH funding, at affordable rates, in a structure that makes sense for everybody involved.