FWIW I'd invest in it if the #s look good.
Seems like a fairly passive business that can print $ in an area with the right demographics.
Doesn't mean you have to own it forever but they are providing a service in a free marketplace. Sure $40 on 400 in a week sounds ridiculous, but NOBODY would lend these people $ otherwise. The debt is uncollateralized and there isn't recourse if they don't pay.
Seems like a fairly passive business that can print $ in an area with the right demographics.
Doesn't mean you have to own it forever but they are providing a service in a free marketplace. Sure $40 on 400 in a week sounds ridiculous, but NOBODY would lend these people $ otherwise. The debt is uncollateralized and there isn't recourse if they don't pay.
Not sure what state you live in (i think TX?)
A lot of states are starting to put in regulations against these places and cap the interest rate at 36% which obviously isn't very good when you consider the risk in the actual debt you are issuing.
Although if you are in TX that seems like the last state to give a shit but with changing demographics then who knows.
A lot of states are starting to put in regulations against these places and cap the interest rate at 36% which obviously isn't very good when you consider the risk in the actual debt you are issuing.
Although if you are in TX that seems like the last state to give a shit but with changing demographics then who knows.
Two more things:
1. Probably the most interesting statement made on the 30 for 30 doc "Broke" was when the player said he cashed his first $400k check at a check cashing place.
2. I'm a fiscal libertarian. I don't think these places should be made illegal or anything. I just couldn't sleep at night personally knowing what my business was pretty readily doing. I also couldn't be a bookie if I knew each and every bettor I took had no business making the size of bets they made and if I was a car salesman, I wouldn't squeeze people into a new Cadillac when all they could afford was a Honda civic.
1. Probably the most interesting statement made on the 30 for 30 doc "Broke" was when the player said he cashed his first $400k check at a check cashing place.
2. I'm a fiscal libertarian. I don't think these places should be made illegal or anything. I just couldn't sleep at night personally knowing what my business was pretty readily doing. I also couldn't be a bookie if I knew each and every bettor I took had no business making the size of bets they made and if I was a car salesman, I wouldn't squeeze people into a new Cadillac when all they could afford was a Honda civic.
I dont see anything wrong with a check cashing business, the pay day loans I feel do take advantage of people. But... no one is forcing those people to take the loans. They are voluntarily walking through the door and signing their names themselves. They could go other places for money. Pawn shop, borrow, cc.. etc. Its not the only option out there....I do know they deal with a lot of fraud
If you have to ask, it means you have a conscience. If you have a conscience, this isn't the business for you.
When I first starting managing my own 401k, I didn't care, but now I actively avoid buying stocks of companies I have moral objections to like Monsanto, Philip Morris, Altria, Halliburton, etc.
I hear you man. And props for not selling out and just looking at the money side of things. Drug dealers can make the same argument "no one is forcing them to do drugs" lol I wouldnt want to be involved in that kind of business either. Dont 2nd guess yourself on not getting involved if this is a business that bothers you. There are lots of other opportunities out there
I would get many people in my bar that worked labor pool and would cash their checks and just keep whatever change was coming like if the check was for $52.35, I keep the $.35. It did wonders for my business because it would suck the guys into having a few pops everyday after work. I never once felt bad about doing that.
