Payday Loan business start-up advice

[monniesBig]

I already have a Consumer Lending licence!

I am in desperate need of legal advice on Payday loan business, i.e customer contracts plus all other legal aspects surrounding consumer lending business.


Please let me know of any experienced firm/consultant who can assist; I am based in London

thanks

 

[oldeagleeye]

HOW on earth do you plan to set up a business that you know nothing about that you need consultants. Have you not done any research yourself. Produced a business plan which shows where you fit into the market. What the competition is. Indeed how you could possible earn money.

A consumer credit licence don't mean didly squat. If you don't understand this market your fail miserably because of sheer in competance or by being ripped off.

Soory OP. I know that is not what you wanted to hear but that is the reality.

rob

 

[monniesBig]

Hi Rob, thanks for your reply; and of course I want to hear anything valuable!!

 

[oldeagleeye]

Stay away the OP.

1)Competition. There areat least 10 companies offering payday loans in my town and that is nor unusual.

2) Most offer other services or have other USP's. 4 for example are jewllers. I hada prime position in the station. They all have years of promotion over you.

3) I very much doubt you have worked out the profit margins on this but with premises - utilities and insurance - the minimum of promotion and paying yourself the minimum wage your looking at around £1,000 overheads. That is £50K a year. I reckon then you would have to do at least 1,000 deals to break even.

4) Assumming the the average payday loan is £1200 and most demand would come during the last week in the month you would need some £100,000 cash to cover cash flow.

Now these numbers are only general but they are in the ball park.

I really do suggest that you think this one through OP.

Rob

 

[pay day business seller]

Dear Moniesbig,

I have just recently (yesterday) completed setting up a brand new payday business with all necessary licences and state of the art software finished and ready to go live. I do not mind selling the entire setup if you are interested. please let me know.

thanks

I already have a Consumer Lending licence!

I am in desperate need of legal advice on Payday loan business, i.e customer contracts plus all other legal aspects surrounding consumer lending business.


Please let me know of any experienced firm/consultant who can assist; I am based in London

thanks

 

[oldeagleeye]

You opened the shop yesterday and want to sell already. Tough you have lost your money. Any due diligrence check would want to know why you want to sell now.

Rob

 

[-Joe-]

It's a very expensive business to get into. I'd say £2000 for a basic landing page, plus lots of split testing.

Then you're looking at £100-150 per lead. Not per sale, per lead. If you need some names of good affiliate networks to run this through, hit me up.

What I wanna know is, do you actually have the money to fund this?

 

[Karl89]

It's a very expensive business to get into. I'd say £2000 for a basic landing page, plus lots of split testing.

Then you're looking at £100-150 per lead. Not per sale, per lead. If you need some names of good affiliate networks to run this through, hit me up.

What I wanna know is, do you actually have the money to fund this?

£100 to £150 a lead?

£2000 for a landing page?

Sorry but, lol.

 

[estwig]

It's a very expensive business to get into. I'd say £2000 for a basic landing page, plus lots of split testing.

Then you're looking at £100-150 per lead. Not per sale, per lead. If you need some names of good affiliate networks to run this through, hit me up.

What I wanna know is, do you actually have the money to fund this?

£2000 for a webpage!!

Can you gold plate webpages???

 

[-Joe-]

£100 to £150 a lead?

£2000 for a landing page?

Sorry but, lol.

Ok, I'm assuming you've never worked in this business. It's not lol, it's reality.

£2000 for a webpage!!

Can you gold plate webpages???

Yep, it's true!

And yeah, while that seems high, think of the amount it costs to fit a shop. And think of the kind of ROI that can generate in comparison..

 

[internetspaceships]

Joe am I going blind? I can't find your website address in your details

 

[internetspaceships]

Aaah ok mate

 

[-Joe-]

Joe am I going blind? I can't find your website address in your details

Yeah, sorry. my email's in my sig though, I'm available through that and PMs.

Also, unfortunately couldn't actually fit it in atm! My sig maxed out the character limit, I think I've reduced it to 1 character below it!

 

[Karl89]

Ok, I'm assuming you've never worked in this business. It's not lol, it's reality.

I do work in the industry and it's definately not a reality.

We generate between 400 and 600 payday leads a day, going by that, we pay out a minimum of £40,000 a day just for leads. That's based on 400 leads at £100 each.

I think you'll find that your figures our way out. Especially when the average loan is around £150 to £300, depending on how you add on the interest/fees you're looking at around £30 to £40 in charges on the loan for the month.

So, if you're paying £100 to £150 for leads, of which, not all convert, then you add in the amount you're paying out for the loan - you'd go out of business because the money you make back on the loan doesn't cover the cost of the lead. The figures just don't add up.

I suggest finding a new lead source because you're being ripped off.

 

[mcgovern]

Dear Moniesbig,

I have just recently (yesterday) completed setting up a brand new payday business with all necessary licences and state of the art software finished and ready to go live. I do not mind selling the entire setup if you are interested. please let me know.

thanks

Can you let me know what software you use

 

[mcgovern]

It's a very expensive business to get into. I'd say £2000 for a basic landing page, plus lots of split testing.

Then you're looking at £100-150 per lead. Not per sale, per lead. If you need some names of good affiliate networks to run this through, hit me up.

What I wanna know is, do you actually have the money to fund this?

why would you pay £150 for a lead, when you will only gain £25 - 30 pounds in interest from each customer?

the average loan is only around £100

 

[mcgovern]

I do work in the industry and it's definately not a reality.

We generate between 400 and 600 payday leads a day, going by that, we pay out a minimum of £40,000 a day just for leads. That's based on 400 leads at £100 each.

I think you'll find that your figures our way out. Especially when the average loan is around £150 to £300, depending on how you add on the interest/fees you're looking at around £30 to £40 in charges on the loan for the month.

So, if you're paying £100 to £150 for leads, of which, not all convert, then you add in the amount you're paying out for the loan - you'd go out of business because the money you make back on the loan doesn't cover the cost of the lead. The figures just don't add up.

I suggest finding a new lead source because you're being ripped off.

Sorry didnt see your post earlier.

On a different note can you tell me what software you use.

 

[doi_swilkinson]

A colleague of mine has a PDL company he sells franchises £12k,its a great business model the lenders employer is responsible to make the deduction at source and pass back to the lender,I could not beleive that employers would want to get involved but they do

Stefan

 

[mcgovern]

A colleague of mine has a PDL company he sells franchises £12k,its a great business model the lenders employer is responsible to make the deduction at source and pass back to the lender,I could not beleive that employers would want to get involved but they do

Stefan

Thats a different approach, how would the employer benefit from that arrangement?, seems like it would only burden them with more admin.

 

[oldeagleeye]

How can anyone advertise £350 quid for a custom made web site and then say a landing page is £2,000. Is someone being sarcastic or what.

Mind you not quite up to the standard of the crack going aroung amongst professional journalists. Apparently after the annoucenment that Russi was going to get the 2018 world cup and Qatar one witty hack asked the chairman of Fiffa who his favourite Qataer player was

The plonker replied Eric Clapton before rushing off the deposit his suitacse of dosh in a Swiss bank courtesy of the Russian delegation.

Rob

 

[-Joe-]

I do work in the industry and it's definately not a reality.

We generate between 400 and 600 payday leads a day, going by that, we pay out a minimum of £40,000 a day just for leads. That's based on 400 leads at £100 each.

I think you'll find that your figures our way out. Especially when the average loan is around £150 to £300, depending on how you add on the interest/fees you're looking at around £30 to £40 in charges on the loan for the month.

So, if you're paying £100 to £150 for leads, of which, not all convert, then you add in the amount you're paying out for the loan - you'd go out of business because the money you make back on the loan doesn't cover the cost of the lead. The figures just don't add up.

I suggest finding a new lead source because you're being ripped off.

It is a reality. And no, I think I'll find my figures are spot on. For example, I get paid £80 per lead, through probably the second biggest lead broker. And that's after their cut.

why would you pay £150 for a lead, when you will only gain £25 - 30 pounds in interest from each customer?

the average loan is only around £100

Repeat business.

How can anyone advertise £350 quid for a custom made web site and then say a landing page is £2,000. Is someone being sarcastic or what.

Mind you not quite up to the standard of the crack going aroung amongst professional journalists. Apparently after the annoucenment that Russi was going to get the 2018 world cup and Qatar one witty hack asked the chairman of Fiffa who his favourite Qataer player was

The plonker replied Eric Clapton before rushing off the deposit his suitacse of dosh in a Swiss bank courtesy of the Russian delegation.

Rob

How can you charge £15k for a shop in oxford circus? I can get one in Hemel Hempstead for £2000!?

Different things have different prices. I wouldn't recommend my services for someone who wants a payday loan site done. However, I wouldn't recommend anyone on here for that, nor any of the top 20 ranked web design companies in Google. I would recommend myself over any of those, but I still wouldn't say that'd be the best option. I know people who I could recommend though.

Joe

 

[Karl89]

It is a reality. And no, I think I'll find my figures are spot on. For example, I get paid £80 per lead, through probably the second biggest lead broker. And that's after their cut.

You're living in a fantasy land.

 

[-Joe-]

You're living in a fantasy land.

Sorry to say this, mate, but no I'm not.

 

[oldeagleeye]

Joe and Karl. You say that you pay out £40K a day in leads and havent even got a web site up. You are utterly unbelievable.

End of story unless of course you want to post us your yurl so we can check your visitors stats stand up but you won't do that will you. In which case I will say this whole thread is about spam.

Rob

 

[-Joe-]

Joe and Karl. You say that you pay out £40K a day in leads and havent even got a web site up. You are utterly unbelievable.

End of story unless of course you want to post us your yurl so we can check your visitors stats stand up but you won't do that will you. In which case I will say this whole thread is about spam.

Rob

We've sorted it now, had a discussion via PM where I told him which broker I use. Civil conversation, gave him a linkup.

I don't know about Karl, but I can't see anywhere where I mentioned £40k a day, or any number, other than the amount I'm paid per lead.

And no, I won't be posting my URL. Seems rather silly to, doesn't it, revealing the inner workings of your business to prove a point to someone on a forum?

 

[Karl89]

Joe and Karl. You say that you pay out £40K a day in leads and havent even got a web site up. You are utterly unbelievable.

End of story unless of course you want to post us your yurl so we can check your visitors stats stand up but you won't do that will you. In which case I will say this whole thread is about spam.

Rob

Rob, I never said anything about paying out £40k in leads a day. I just made some calculations based on the amount of leads we generate and the amount Joe predicted they cost. I never said that amount is paid out, as I say, I just made some calculations to try and prove a point.

As Joe said, we've spoke via PM and I'm looking into one of the brokers he uses, see if they come close to the £80 a lead he suggest he gets. It's all good.

 

[liquidauctions]

I have to agree with Rob for once. If you dont know anything about the business then it will not end well!

 

[oldeagleeye]

Appreciate the clarication guys and the numbers they only go to show this business ain't for the amateur or poorly funded. They also show up what a shocking deal this is for punters with around 70% of those huge charges paid out just to get their business in the first place and they are huhe are they not.

They make the outragious rates on store cards seem like a present from a benelevent Santa.

Oh well everything in its place. What gets my goat is how many billions we are all going to end up in paying in inflated gas charges the Ruskies will demand to pay for the world cup.

Rob

 

[sinclairsea]

In other words you saw this thread, thought their is someone I can make some money out of and registered so you could reply.
I am sure if I put my mind to it I could set up the same sort of company and then sell it on, it does not mean the OP would make any money.

Was about the type the same lol !

 

[mcgovern]

Then you're looking at £100-150 per lead. Not per sale, per lead. If you need some names of good affiliate networks to run this through, hit me up.

quote]


I know you mention repeat business, but they would have to have the customer come back 5 times in most cases , seems like a gamble, but if thats what yoo are getting paid , the fair play to you.

Could you pm the lead brokers details as I may have plenty of customers LOL

 

[Sage1974]

BestInTheWorldMedia.com

We do like to blow our own trumpet

 

[internetspaceships]

Especially when it's not even there.

Sorry, we're currently undergoing a redesign. Please come back another time!

Email: contact (at) bestintheworldmedia.com Thanks.

Oozes credibility doesn't it.

 

[Sage1974]

Thats the problem with having a name indicating that you are a superstar at what you do.

When you mess up it looks like a joke.

 

[-Joe-]

BestInTheWorldMedia.com

We do like to blow our own trumpet

Why shouldn't you blow a trumpet if you own one?

Especially when it's not even there.

Sorry, we're currently undergoing a redesign. Please come back another time!

Email: contact (at) bestintheworldmedia.com Thanks.

Oozes credibility doesn't it.

It's being redesigned within a week. Currently our main priority is dealing with the influx of clients we've got through here.

Thats the problem with having a name indicating that you are a superstar at what you do.

When you mess up it looks like a joke.

That's not a messup - it's pre-planned.

We run under tight profit margins (giving all the customers the best value) so have invested more heavily in coders and designers than into the website itself. Don't worry though, it'll be up shortly.

 

[Sage1974]

The mess up is in the eye of the beholder and not for you to talk yourself out of. If someone has certain standards of what they would expect from an establishment derived from their own expectations that is their own right. You wouldnt argue with a customer would you?

You can blag all you want. Doesn't mean you are believed. You call yourself "Best in the World". Now please enlighten us. How do you validate your name? You go on about tight profit margins (fair enough) but you should be making some profit to atleast have a shop window as it is so important in your industry to have one. If you are so busy with work then why have you not delegated?

Im not worried, its your reputation and not mine.

 

[-Joe-]

The mess up is in the eye of the beholder and not for you to talk yourself out of. If someone has certain standards of what they would expect from an establishment derived from their own expectations that is their own right. You wouldnt argue with a customer would you?

You can blag all you want. Doesn't mean you are believed. You call yourself "Best in the World". Now please enlighten us. How do you validate your name? You go on about tight profit margins (fair enough) but you should be making some profit to atleast have a shop window as it is so important in your industry to have one. If you are so busy with work then why have you not delegated?

Im not worried, its your reputation and not mine.

Generally the amount of sales has been in line with what I'd expect. And I'd rather wait a week or so and come out with a website that looks good, rather than whipping something out overnight that doesn't justify our name.

The name's a bit of fun really. I'd prefer it to one of those poncey "latinwordhere designs" etc. However, I do think we're pretty good

I do delegate. However, I want to get this absolutely perfect. I've got a website that's half made so far - in that it's all designed, but theres some minor adjustments, and then it'll be coded and rolled out.

Not long to wait

 

[internetspaceships]

I thought it was being redesigned?

So if it's not, this is the beginning of the company then?

 

[DesignerNick]

I thought it was being redesigned?

So if it's not, this is the beginning of the company then?

I would say so as the domain was only registered on the 26th November.

A landing page for 2k?

 

[-Joe-]

I thought it was being redesigned?

So if it's not, this is the beginning of the company then?

Beginning of the company in that name. Formerly h.e.r.t.s.p.r.com (remove the dots, sorry, but after going through that, and us agreeing in the end, and having to get a mod to remove the website name, it's easier this way)

I would say so as the domain was only registered on the 26th November.

A landing page for 2k?

Incorrect.

And yes, you can pay 2k for a landing page, as I've stated.

 

[Sage1974]

If you start a company in PR or and Media you should have your website set up and functional before/at time of launch. Otherwise it raises questions.....and now it has. As a result these people who question the credibility of your organisation have no good answer from you that satisfies their curiosity.

You're website should atleast say what work you have done? What do other previous customers think. What is your ethos or history.

This is something that should have been done first. Especially if you claim you are THE BEST.

Naming a company is not about joking or fun. If you are involved in media and PR then you should know the marketing impact of naming an organisation as such without clout is detrimental. Im still waiting upon your validation.