When payday means a day to get wages and loan means a thing which is money to be borrowed and paid back, so Payday Loan means money to fund the unexpected expenses arise before the payday. It is a small amount of money lent at a high interest rate on the agreement that borrowers need to repay when they get the next wages.
Payday Loan is very popular abroad as it is simple and fast to get approved without a guarantor and affordability check. Some companies offer an online registration which makes it even better. With a small amount of credit limit, the borrowers will think they can repay quickly. Also, the interest rate usually starts within 5%, same as other financial institutions, but if the borrowers stop repaying, it will increase unexpectedly. For example, if you are unable to repay on the final agreed day, interest will be added for up to 60 days at 1% a day, then frozen.
Why Payday Loan? If compare to Non-Standard Loan, Payday is obviously a better option as it is legally run by the legitimate shops or companies to ensure the safety with restrictions controlled. One good example shown a protection for the borrowers suffering from Payday’s high interest is that The OFT shut down three lenders in 2013 and since it is published, 11 lenders have decided to withdraw from the market. Only you make you sure to repay as agreed, you can keep the interest fixed at the same rate the company offers.
Not only benefits the borrowers, those who are looking to make money from Payday can apply Payday Loan companies to be their affiliate and take the irregistration forms to upload to your website then get a commission easily once the companies approve Payday Loan to the borrowers. Some create Adword to gain more income, but the cost is also higher than the website. One thing to keep in mind is that the keyword to run and timing are everything to make this kind of business successful.