How to Start a Car Title Loan Business

Estimate what your loan volume will be and then keep at least 60 days worth of capital in easily accessible accounts available to you so that enough liquid capital exists to meet needs. With the interest rates that lenders charge, it can also be very lucrative. Learn as much as you can about the business by reading trade periodicals or by working in a payday loan office. Payday loans and auto title loans are a scourge in the state, a legal practice that exploits thousands of the working poor. In some cases, your customers will not repay you and you will have to rely on repossession and the sale of the vehicle to recoup your costs.

Payday Loans vs. Fig Loans

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Below you will find references to the Texas laws that govern payday loans. If you find these statutes difficult to understand, you may want to look at the "plain English" resources on this page or speak to an attorney. Art. 16 "Credit Access Business," effective 1/1/ this study by the Center for Public Policy Priorities, "shows How to Start a Loan Company by Joseph DeBenedetti - Updated September 26, Those looking to start an installment loan, payday loan or mortgage company can earn favorable If you are looking for a business to start, a loan company is one way to earn money fast. Discover how a loan company operates from our basic guide. I would like more information on how to start a loan store, in Dallas Texas.. Kenneth said on April 5, How to start a payday Loan business. Polokwane SA. Paula said on February 24,

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Coupons that are mailed individually or in coupon letters of flyers will get a small return based on the number sent out. Insets and asking old customers for referrals will probably get a better response. Payday loan businesses fill a need and are also very lucrative to the owner. The high return on money that is out on loan can return a significant profit if some care is exercised on whom the loans are made to by a strict loan policy.

Checking accounts and debit cards are a solid sign of stability. Fixed income clients are also good potential customers, as their money flow will not be disrupted. Home ownership and length of time at one bank will also be an indication of stability. Repeat customers are like gold to this type of business.

You have a history with them and you can expect it to be satisfactory in the future. Lack of credit is the biggest factor that drives people to use these companies to borrow money.

The result is you are dealing with a higher risk client, but you can also make more money on the money you lend out to the customers. Some loss factor must be built into the business plan. However a good pre-loan interview will help to keep losses at a minimum. The Internet is a good place to get further information on this type of business. Existing Check cashing Businesses for sale may be viewed at http: Do you have expertise and want to contribute an article?

If accepted, we will permanently post your article with your bio, contact info, and a link to your website. Sent once a month. Quick and easy to read. And delivered the way you want. Please specify valid email address. BrokerLogics, exclusively for business brokers, lets you manage your account and add or modify all your Acquireo business for sale listings in one convenient place. Find more brokers in the Acquireo Business broker directory. Login Contact us Blog. Two ways to get into this business A person can start a payday loan business from scratch or buy an existing business or franchise.

A business that demands good people skills Payday lending requires solid training of the staff to make sure that the employees follow all applicable laws. Location and referrals Use your customer base to get more customers. Conclusions Payday loan businesses fill a need and are also very lucrative to the owner.

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A person can start out by selling personal items they wish to get To find out if a business name is available, call the Secretary of State and they will do an immediate computer search.

If a corporation will transact business under names other than that stated in the articles of incorporation, the corporation must file an Assumed Name Certificate with the Secretary of State, and with the county clerk in which the principal office and registered office of the corporation are located. See next section for details on Assumed Name Certificates.

Box , Austin, Texas If the business will operate as a sole proprietorship or a general partnership, an Assumed Name Certificate or d. If no business premise will be maintained, it should be filed in each county where business will be conducted. If the business will operate as a corporation, limited partnership, or limited liability company, and the business will be identified by a name other than the name on file with the Secretary of State, an Assumed Name Certificate must be filed with the Secretary of State and each county in which the business will have a registered or principal office.

Neither the filing of an Assumed Name Certificate nor the reservation or registration of a company name imparts any real protection to the party filing the certificate.

It is merely a formal process that informs the general public of the registered agent for a business and where official contact with the business can be made. Each county clerk office may use a different form; however, the information requested should be the same. Be prepared to provide the business name, mailing address, city, state, zip, expected period of operation, business type, and owner information.

Period of operation is the period of time the business will use the name. Ten years is the maximum length of time an assumed name filing is valid. However, if the name will be used for a period of less than ten years, indicate this on the form. Note that names must also be renewed every ten years. Business type refers to the legal structure of the business.

Indicate whether the business will operate as a corporation, partnership, sole proprietorship, etc. Owner information is the name s of the owner s , personal address es , and signature s. All owners' signatures must be notarized. This service is sometimes offered at the county clerk's office. The form cannot be filed until all owners have signed it and all signatures have been notarized. The following information will be helpful in filing the Assumed Name Certificate in the county the business will operate.

First, write down the name of the business you will be considering. Pay close attention to capitalization, spacing, punctuation, etc. Consider this carefully as this name will identify the business to the public. Next, search the county records for that exact business name in the assumed name books or computer. An assumed name filing is valid for ten years, so search records for the last ten years to verify that the name is available. One book will not necessarily encompass one year of filings, so check the front of the book for dates.

Some records are computerized; however, a computerized index may not contain ten years of filing history. Use the computer for the period it covers, and then use the books for any of the remaining ten years.

If the business name has been used, look in the margin to see if it has been abandoned. If the name has been abandoned, it can legally be used again. Many county clerk offices will provide a name search service for a nominal fee.

The whole search process will often be taken care of through the mail. Please contact the local county clerk for verification of their process. Finally, if the company name is available, fill out the assumed name form and have it notarized. Then file it with the county clerk's office. The county clerk will keep the original Assumed Name Certificate, so be sure to request several certified copies at least one for the bank and one for your business records.

For filing fee information and accepted form of payment, contact the local county clerk's office. Most county clerk offices accept cash, certified checks, or money orders. If processing via mail, send the forms by certified mail with a return receipt requested to verify receipt by the county clerk. The second step for starting a business is to determine the federal, state, and local tax obligations.

The following sections briefly discuss each of these areas. Information regarding federal income taxes, tax identification numbers, business tax credits, and employment tax regulations may be obtained by contacting the following agencies:. Social Security Administration The Comptroller of Public Accounts is charged with the administration and collection of state and local sales tax from businesses operating in Texas, and also collects any franchise taxes owed by Texas corporations.

There is no state income tax in Texas. The Comptroller maintains field offices in most major Texas cities to provide assistance and aid in complying with tax regulations. For further information on these taxes, contact:. The Texas Workforce Commission collects all unemployment taxes for workers employed in Texas. For information regarding these taxes, to obtain a state employer's identification number, and for information on tax credits, contact:.

If the business owns tangible personal property that is used to produce income, the property must be reported on a rendition form to the local county appraisal district, after January 1 and no later than March 31, each year. Business owners must report all inventories, equipment, and machinery.

For additional information, contact the local county appraisal district. See the government pages of your local telephone directory for telephone numbers.

The following information pertains to state and federal taxes. The site has vital links to other Texas government entities. The State of Texas does not require a general "business" license. However, there are a number of regulatory agencies that have licensing and permitting requirements based on the type of service, or products associated with your business. Please visit the Texas. The final step in starting a business is determining the federal and state employer requirements.

As an employer, you have labor, safety, and tax obligations. The information below is the labor, safety, access, and new hire reporting regulations administered by federal and state agencies.

The Americans with Disabilities Act ADA provides protection for people with disabilities in the areas of employment, public services and transportation, public accommodation, and telecommunications. For federal information on how the Americans with Disabilities Act will affect a business and for technical assistance with provisions applying to employment, contact:. For technical assistance on the ADA standards for accessible design and other ADA provisions applying to businesses, nonprofit agencies, and state and local government services, contact:.

Office on the Americans with Disabilities Act: Civil Rights Division U. For information regarding the ADA requirements for accessible design in new construction and alterations, contact:. Federal and state laws prohibit employment discrimination. Current statutes cover all employment transactions. All employers with 15 or more employees engaged in an industry affecting commerce, employment agencies, and labor unions are prohibited from denying equal employment opportunities. Regardless of the number of individuals employed, a county, municipality, and any state agency or instrumentality including public institutes of education, are also prohibited from denying equal employment opportunities.

The TWCCRD will provide technical assistance and training to employers to facilitate compliance with laws prohibiting employment discrimination. The EEOC promotes voluntary programs that allow employers and organizations to implement equal employment opportunity programs within their businesses.

For information regarding federal equal employment requirements, contact:. Equal Employment Opportunity Commission. El Paso District Office E. A Fredericksburg Rd. The program conducts free on-site safety and health consultations to help small, private sector employers understand and comply with Occupational Safety and Health Administration OSHA regulations. The program is geared toward employers in high hazard industries with or fewer employees per worksite and less than employees nationwide.

Free services include identification and evaluation of safety and health hazards; industrial hygiene services, such as noise level monitoring and air sampling; hazard correction assistance; hands-on training; technical updates on OSHA standards; safety and health management program assistance; and safety training audiovisual loans and publications. For more information regarding state and federal occupational safety and health requirements, contact:.

For information regarding federal occupational safety requirements, contact: For information on federal minimum wage laws, overtime, and other questions regarding wages and hours, contact:.

For general information regarding federal labor laws, contact: For information and technical assistance on the Americans with Disabilities Act, state disability policy information, disability statistics, and local disability resources, contact:. The Texas Department of Licensing and Regulation reviews construction documents for the construction or substantial renovation, modification, or alteration of buildings or facilities defined as public or commercial accommodations for architectural barriers.

This review is mandated through the Americans with Disabilities Act. For additional information on architectural barriers, contact:. Texas Department of Licensing and Regulation E. Thompson State Office Building P. Box Austin, Texas or Advice is available to Texas employers with 15 or more employees who maintain workers' compensation coverage. Employers must comply with certain drug-free workplace requirements, and are also subject to federal regulations.

Department of Transportation regulations requiring drug and alcohol testing. See listing under Federal Requirements for general explanation. For information regarding state equal employment requirements, contact:. New Hire Reporting may be accomplished online. It is mandated by federal law under the Personal Responsibility and Work Opportunity Reconciliation Act of , and requires employers to report new hires and rehires within 20 days. Notice must be made to either the affected workers or their representatives e.