California is a great place for studying the thinking -- or lack of thinking -- on the political left. The mindset of the left was recently displayed in a big, front-page story in the October 30th issue of the San Mateo County Times. It was an investigative reporter's expose of the "payday loan" business and its lobbyists.
Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
Many economists expect that this recession will continue until mid, at which point the economy will begin a prolonged recovery period. There are several pieces of legislation that are being considered on both the federal and state level that will sufficiently limit the interest rates charged to low income borrowers for emergency credit services.
These businesses are able to charge these rates of interest as many states do not have upper limits on the interest rates charged on small loans.
Approximately 5, of these businesses operate within a similar capacity as that of the Company. The industry has recently undergone a revolution with the advent of the Internet. With instant access to customer verification, people can seamlessly borrow capital from banks that conduct business on the Internet.
The Company intends to capitalize on this trend. The Company is quickly developing its credit manual to develop guidelines regarding its payday and signature loan business. The business has already employed several techniques to ensure that credit default is kept to an absolute minimum.
The key to writing a strong competitive analysis is that you do your research on the local competition.
Find out who your competitors are by searching online directories and searching in your local Yellow Pages. Below is an overview of the marketing strategies and objectives of the Company. Doe intends on using a number of marketing strategies that will allow the Payday Loan Company to easily target men and women within the target market.
These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public.
The Payday Loan Company will also use an internet based strategy.
This is very important as many people seeking local services, such as payday lenders, now the Internet to conduct their preliminary searches. Doe will register the Payday Loan Company with online portals so that potential customers can easily reach the business.
The Company will also develop its own online website, which may include functionality for allowing customers to directly acquire loans over the internet. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the payday loans that the Company is offering.
You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically.
This section of the business plan should not span more than 1 page. For each owner or key employee, you should provide a brief biography in this section.
Payday and signature loans are primarily used as emergency lending vehicles, and as such, the people obtaining these loans are in a serious financial situation. As such, as the economy recesses the business may actually notice a marked increase in the business generated by the Company.
However, severe turns in economic stability may increase the defaults experienced by the business. Management would compensate this higher risk by increasing the fees associated with each loan.A Sample Check Cashing & Payday Loan Business Plan Template.
Industry Overview; Firms that operate in the Check Cashing and Payday Loan Services industry cashes checks, drafts or money orders for the general public.
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