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The main reason why big finance hates small payday loan companies is that they view them has having an unfair advantage in competition because payday loan companies are allowed to charge extremely high APR interest rates.
Of course, one of the obvious reasons for big financial institutions to take on short-term lenders is that of competition. If people get a short-term loan then they won't get a bigger long-term loan at the big banks -- competition.
Of course, the APR rates of long-term rates and short-term rates are extremely different, much like the difference between the rates of pay for hotel rooms and actually renting an apartment. Hotels are expensive over a year because they are only created for short-term rents.
If they are capped at 36%, or limited by the amount of money they can loan out, they will not be able to stay in business. This creates a problem for consumers, because financial institutions do not make small, short term loans.
Of course, big companies have to make more than fifty bucks per loan -- the smaller guys don't. It's just a question of them squashing small business competition.
Then again, some people suggest that the big lenders actually are behind the smaller lenders, lending money in lump sums rather than to specific people who want a loan, meaning they are making money on the side.
Basically, no matter what happens, the big financial companies will be profiting overall, which might be another reason they hate these small loan companies -- they need their business, which puts them into a bind.
If the big companies wipe out short-term loan lenders, the consumers are going to put their money in the coffers of the big financial institutions. And that's what it's about in the end.
They might be able to try out a way to make money online or sell products, but there will soon be legislation outlawing that as well. This is really going to affect lower-class Americans.
Of course, some people might need short-term loans that the big banks will be forced to offer them -- but that probably won't occur.
Big finance hates watching small payday loan companies grow and thrive. In some places, there are more payday loan stores than McDonalds and Starbucks.
Of course, one of the obvious reasons for big financial institutions to take on short-term lenders is that of competition. If people get a short-term loan then they won't get a bigger long-term loan at the big banks -- competition.
Of course, the APR rates of long-term rates and short-term rates are extremely different, much like the difference between the rates of pay for hotel rooms and actually renting an apartment. Hotels are expensive over a year because they are only created for short-term rents.
If they are capped at 36%, or limited by the amount of money they can loan out, they will not be able to stay in business. This creates a problem for consumers, because financial institutions do not make small, short term loans.
Of course, big companies have to make more than fifty bucks per loan -- the smaller guys don't. It's just a question of them squashing small business competition.
Then again, some people suggest that the big lenders actually are behind the smaller lenders, lending money in lump sums rather than to specific people who want a loan, meaning they are making money on the side.
Basically, no matter what happens, the big financial companies will be profiting overall, which might be another reason they hate these small loan companies -- they need their business, which puts them into a bind.
If the big companies wipe out short-term loan lenders, the consumers are going to put their money in the coffers of the big financial institutions. And that's what it's about in the end.
They might be able to try out a way to make money online or sell products, but there will soon be legislation outlawing that as well. This is really going to affect lower-class Americans.
Of course, some people might need short-term loans that the big banks will be forced to offer them -- but that probably won't occur.
Big finance hates watching small payday loan companies grow and thrive. In some places, there are more payday loan stores than McDonalds and Starbucks.
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research regarding short-term loan. Or you can read how to make money fast supposing that you want quick cash..
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