Payday Loans And Industrial Facts In The US

FOR IMMEDIATE RELEASE
Deerwood, Minnesota, United States of America (Free-Press-Release.com) December 6, 2011 -- In the year 2005, a broad research was made by the analysts of US. They concluded that there are between 23,000 and 25,000 payday loan stores in US. Around $40 billion are subsided just for payday loans . A loan fee of $6 billion is charged by the customers. Payday loan lending has not only been dominating the US business but slowly it’s web is spreading all over the globe due to its merits.

According to the statistical report, in the year 2001, the business of cash advance payday loans had 7,000 to 10,000 offices. Around 41 million proper transactions were made. It earned revenue of $1.4 billion. The reports also reveal that by the year 2003, there were around 22,000 payday loan offices. It earned a fee around $6 billion through 100 million transactions. The sales were initially $10 billion in 2000 which went up to $40 billion in 2003. Thus the sales grew four times more from 2000 to 2003.

Payday industry is the most flourishing business that is enhanced by enormous profit. It mints around 34% pre-tax return. With only small cash lot of money can be made. Sometimes people avail another loan in order to pay back the first one and in this manner lot of profit is earned. Payday loan lenders charge more than 400% APR. On the other hand if we take into consideration the credit card rates, they never exceed 29% APR. This amount is much less than the one charged by the short term loans.

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