03 Mar Payday Loan Investing
Everyone is looking for an opportunity to make a little extra cash. These days, the interest rates on savings accounts aren’t even high enough to wipe your bottom with. That’s part of the reason why people aren’t earning much aside from their pay check. The banks are using and reusing our money while it’s sitting in their accounts and they pay us insulting rates of interest for helping them stay in business. Investing in a long term Nest Egg Savings Account doesn’t yield much profit either. For example, a $300 investment at Alterna Savings earns approx. $2 after being locked in for 1 year. It’s no wonder people are looking for an alternative.
Investing in the payday loan industry can yield some aggressive yet low risk gains. Most people have a need for short-term loans. There aren’t many people you can find who haven’t had a short-term loan or a credit card. The demand for money is high; higher than the demand for food. Even with the emergence of electronic currency (Bitcoin), there will never be a shortage of demand for money because we have to pay our taxes using this government tender. That being said, investing in the payday loan industry is a wise idea because there is and will always be a large, unwavering demand for money.
The second best reason to invest in payday loans stems from the return on a short-term loan. An average payday loan is about $300 and must be repaid in 7-14 days; or on your next pay date. The maximum interest charged, by law, on a payday loan is 21%. Meaning, on a $300 loan, the interest earned would be $54.00. A profit of $54.00 in less than 15 days is better interest then you’ll ever get from holding your money in a GIC or high-interest savings account. Remember that profit is just for one loan of $300. Imagine the potential if you had a few thousand to invest.
If you’re still not intrigued, let’s talk about the loan default rate. The truth is that most people re-pay their loans. Of course, there is a small percentage of the population that does not. The good news is that profits increase when a person takes longer than 15 days to repay their loan. Besides, most companies have earnings made from advertising that offset the short-term losses. Overall, the risk associated is minimal compared to stocks, bonds and other investments that come with the same or similar profit yieldings.
To invest in the Canadian payday loan industry contact us at support@privateloanshop.com. Everyone over 18 years of age is encouraged to contact us for this rare income opportunity.