Payday Loan Profits
- The following statistics represent our best estimates of the typical returns possible for one location:
- Monthly Volume for 1 store: 575 Checks
- Average Loan: $300
- Average Fee %: 15%
- Average Fee: $15.00 per $100.00 Advanced
- Total Monthly Loan Volume: $146,625.00 ($255 X 575)
- Total Monthly Fee Volume: $25,875 ($45 X 575)
Many operators charge an initial "set-up" fee of $5.00 to $10.00 the first time an applicant receives a paycheck advance. This could add significant additional profits to your operation. Check your state...
These metrics are based on our best opinion of our stores, interviews with members of management of existing stores, statistics gathered via attendance at industry conferences and conventions. YOUR RESULTS MAY BE DIFFERENT!
Are you attempting to determine the advisability of starting a new business? Or perhaps you're an existing pawnshop or check cashing operator considering the addition of a paycheck advance profit center to your operation? What will your first year sales/earnings be? Guess? Certainly you can look at the demographics of your market area. Evaluate your competition, if any. Visit existing operations in other markets. Read any trade periodicals, if they exist. Get a job in the industry for a while. But bottom line, WHO KNOWS!
That is exactly our situation. We do not know what assets you bring to the equation. We all know hard work (luck) and timing can make all the difference in the world. Certainly the timing for the payday advance/deferred deposit business has never been better. It is a product for which clients are clamoring. But what results you will achieve are beyond our control. See our Disclaimer Page
We have certainly heard of locations doing much bigger numbers, particularly in large, metropolitan cities. And of course, a small town will do less volume.
We think that, after the initial "build" period subsides and your location matures, a leveling off somewhere between 220 - 600 customers at approximately 225-700 payday loan transactions per month is typical.
Annual Percentage Rates
Our research indicates the average payday advance is for a period of 8 days (the next payday for your client). If you were to advance $100 to your client, and the fee in your area is 15%, and you planned to hold your client's check until their next payday in 8 days, you would yield the following APR:
$100/.85=$117.65 in fees with an annual return on YOUR MONEY of 805%!
Trihouse Enterprises, Inc.
601 East Charleston Blvd.
Las Vegas, Nevada USA 89104
Call us now with your questions!