Starting a reseller payday loan business requires gathering people who would be interested in a payday loan and then selling that information to a payday lender. This is also referred to as selling payday loan leads. Many businesses use this model as it simply involves gathering information from interested parties and then brokering that information for sale. If done correctly, it can be a lucrative business strategy.
Set up a legal entity for your business, such as a limited liability company or a corporation, so you can limit your personal liability in the business. This way, if someone files a lawsuit against your business, they cannot come after your personal assets. To start either a corporation or an LLC, you will have to pay a filing fee and fill out some paperwork with your state.
Create a method for collecting information for your payday loan reseller business. For example, many people set up websites that allow customers to fill in their personal information. You might also want to set up a physical location. In that case, you would need to find a location and then rent or buy it. If you do not want to invest much money on the front end, starting a website is the simplest way to get started.
Advertise your business to individuals who are potentially interested in payday loans. You could take out ads on other websites, use pay-per-click marketing or even radio advertisements. When advertising, you do not necessarily need to advertise that you are not the one to provide the payday loan. Use general terms and do not specify the terms that people can expect. Depending on who you sell the leads to, the terms could differ significantly once the loan is set up.
Collect the information from customers who visit your website or location. Get as much information as you can from these individuals. For example, give their name, address, phone number, email address, income and how much they want to borrow.
Sell the information to payday lenders. You can contact payday loan companies directly or you could use a marketplace where leads are bought and sold.
Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.