/biz/ - Business & Finance

>>16973962
So, should I short everything?

Hello /biz. I have 2,000 - 3,000 dollars to invest and I am raising funds to start a Payday/Commercial Loan business.

FAQ

>What is a payday loan?

A payday loan is a type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. Usually at a (((300%))) APR.

>Why Payday lending?

In my home state of Florida there is relatively low startup cost and is a business with a lot of potential of growth. Here is a break down of all the costs

Licensing costs : $4,000
Website design/domain/web development: $500 dollars
Lease Cost: 0 (This is an online business)
Legal liability documents/enforcement documents/etc: $5,000
Operating capital: $15,000

>Isn't lending to poor people dangerous

Yes and no. While it is true the default rate for people with low credit scores is higher, payday lenders are given a plethora of legal tools to collect and mitigate the risk of defaulting loans.

Enforcement tools:

>National Database of every payday customer currently taking out a loan
>Payday lenders can ask for collateral possessions like cars
>Payday lenders ask for a plethora of information such as bank account, address, employment information, pay stubs, credit score.
>Payday lenders can sue in Florida and have your wages GARNISHED.


Official Discord

>https://discord.gg/PArAPcF


Is /biz interested? I am trying to find another 9 people looking to buy a small stake in this business (10% a stake for 10 people total at a cost of 2,000 dollars).

I wouldn't take a salary and all the money would go towards the business.

Likewise, the business would give out dividends every 4 months if we are making a profit.

As the articles of incorporation management, business decisions (such as direction of the business such as what we would do with the capital of the company), will be taken by the stake holders (all investors) in a bi-yearly (recorded) stakeholder meeting.