How Do You Start A Check Cashing Store?
Check cashing stores provide a variety of financial services in exchange for a fee, often as much as 15 percent. In addition to cashing personal and government checks for customers who don’t have a bank account or a conventional method for cashing their checks, check cashing stores often extend payday loans, offer money transfers, bill payment options, prepaid phones, and prepaid debit cards. Check cashing businesses are highly regulated; failure to ensure that your business adheres to regulations could cost you. You’ll probably need financing; start with a business plan. Learn the federal and state regulations on check cashing stores and payday lending. Some states do not allow payday lending, and the majority of those that do have implemented interest caps, in addition to regulating the amount of money that can be loaned, the frequency in which money can be loaned, rollover and repayment fees. Additionally, the interest you may charge will vary depending on the type of check cashed.
