A business plan check advance describes how a cash advance or payday loan store can make a profit by extending loans to consumers who meet specific criteria regarding (typically) employment stability and collateral. In many US states the laws governing what sort of cash advance contracts are permissible have changes. Interest rate caps and contract criteria are stricter, but some jurisdictions remain unchanged -- and even in the harshest "crackdown" territories, there can be little doubt that this is still a high-margin business model bursting with potential. What should go into your document includes answers to the following:
• Who are your target customers?
• How will you set your fees?
• How many transactions do you figure per month?
• Where are the closest competing check advance places?
• How will you market the store?
The marketing plan should detail the channels that will be most fruitful for you and show the budget set aside for each. Also explain any competitive advantages you have and in the competitive comparison, give as much data as you can on the other companies. What are their sales? How many agents do they have? When did they get into business? The business plan should also include a complete pro forma financial model showing revenues and expenses over three years (for a bank) or five years (for investors). Need help? MasterPlans has authored business plans for dozens of check cashing, cash advance and payday loan centers from coast to coast. Call us today to learn more: (877) 453-2011.
