What Home Based or Self Employed Business/Unit Can I Start ?
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Posted on: 01-09-15 12:41:53
How about a cheque cashing/payday loan business in today's scenario?
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by chandresh
How about a cheque cashing/payday loan business in today's scenario?
This requires opening the store at a location suitable for the demography. Leasing and renting aside, one needs to check how much one could earn with one check clearing/loan. Plus you might need to hire a help.
Besides, here in BC, some municipalities are regulating this business quite heavily; as more and more gentrification creeps in.
Quote:
Originally posted by mcg7
Quote:
Originally posted by chandresh
How about a cheque cashing/payday loan business in today's scenario?
Great idea, I see so many such shops in my area.
how this business work ?
shop owner get commission for cashing cheque ? why cheque owner can't cash it in bank or take line of credit ?
People are living paycheque to paycheque. They take help of payday loans if they need money for anything else or they run out of money between paycheques.
Banks put a hold, usually 5 days, to the cheques you deposit in bank. I believe these Money Mart type stores give instant money for a fee and they cash the cheque.
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Quote:
Originally posted by mcg7
Quote:
Originally posted by chandresh
How about a cheque cashing/payday loan business in today's scenario?
Great idea, I see so many such shops in my area.
how this business work ?
shop owner get commission for cashing cheque ? why cheque owner can't cash it in bank or take line of credit ?
Lot of BIG well established players already into this like Money Mart and at least 10 other guys. Most of them have US based parent companies. You have NO chance competing against them.
Lot of investment like retail space, staff, IT support, advertising, marketing is needed. Lot of RISK is also involved, like people showing fake ID's, Fake cheques etc.
Reasons why they don't go to a bank :
1. Lot of them don't even have proper documents to open a bank account. Illegal immigrants etc.
2. They want instant money, Bank puts a 5 business day hold. With holidays etc it could be 7-8 days. These guys are literally hand to mouth existence, they have NO savings, emergency funds etc. 1 day delay might be the difference between NO food on the table or getting evicted from their house for NO/delay payment in rent.
3. Some owe money to banks ( negative balance due to overdraft ) , owe money to credit card companies, owe money to TAX man like CRA, owe money to other creditors, owe money to ex-spouses , child support , wage garnishee, have declared bankruptcy, owe back property taxes, owe traffic tickets, By-Law fines, Court fees, Collection agencies etc.
So the moment they GO to a regular bank to cash a cheque like that, the bank catches them & uses that money to fund/pay off their negative balance & money owed. So the customer doesn't get anything.
The money immediately goes to the various owed things ABOVE (see list in 3 ). These guys have NO intention of paying the ABOVE debts, but need the money they get to survive day to day, hence MONEY MART & others prey on them
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I know a guy who owes close to $ 5,000 CRA in back taxes . He is a home renovation contractor. He literally roams around with cash in his pocket. The moment he deposits any cash or cheque in any bank, he knows CRA will suck it from him & he won't see a penny of it
HONEST. : I consider myself 50% honest the other 50 hard working.
RELIABLE : 100% Reliable.
TRUSTWORTHY : 200% Trust wothy. I will take care of your life together with mine. That brings it up to 200.
Now, what can you start with a five grand capital and clear two grand.
Get back here with a few good ideas. When you do and the others jump on it, we have something going between all of us here.
FH.
HRH LMC
Adamthorat has given a mixed picture - on one end he says that it is a business controlled by big companies (so obviously quite lucrative), but at the same time the gloomy side is that one has to deal with people who are hand to mouth, or without proper documents and who owe taxes etc.
Any other views on this business which I know has huge profit margins but seemingly not a high capital investment?
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Chandresh
Advice is free – lessons I charge for!!
I know a retired gentleman who always worked with furniture for a hobby. After retirement, he went into furniture restoration business. Turned part of his basement into work space and gets business through KIJIJI ads. Makes quite a bit. But you need to have a zeal, dedication and actually be interested in doing things. Can't go out, get a bunch of tools and suddenly tell yourself, you will start fixing puters (for example) so look inside yourself and see if ya got any skills or hobbies that you can turn into cash on the side. You can always use kijiji to look for business. The furniture restorer has now become so popular with old folks around town, he can't accept all the jobs that come his way! Don't make it sound like an official business to avoid tax issues.
If all ya got is a pair of arms for use, your options maybe very limited... Skills and hobbies rock!
