By far, one of the biggest justifications that big banks can find for taking on small-business short-term lenders is the fact that the small loans keep some people off of the credit-card grid... it's financially motivated.
The big finance industry has their APR rates limited, and they do not offer the small loans like payday loan companies offer because it would not be profitable for them. At the same time, they look at the blossoming payday loan business and see that they are making huge profits, while serving millions of people daily.
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.
Of course, if the financial institutions cap the APR of short-term loans, then they'll be able to wipe out the little guy who wouldn't make ANY money per loan. This would force people into the net of the big financial institutions. Sucks, right?
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.
The big guys are going to be rolling in the dough regardless of what happens, and they need the small companies. That might be another reason they are conflicting: the big guy needs the little short-term loan lender, which might be an ego thing.
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.
One of the obvious conclusions is that the big banks and financial institutions can't stand the small short term lenders, mostly because they are expanding. That's inevitable.
The big finance industry has their APR rates limited, and they do not offer the small loans like payday loan companies offer because it would not be profitable for them. At the same time, they look at the blossoming payday loan business and see that they are making huge profits, while serving millions of people daily.
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.
Of course, if the financial institutions cap the APR of short-term loans, then they'll be able to wipe out the little guy who wouldn't make ANY money per loan. This would force people into the net of the big financial institutions. Sucks, right?
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.
The big guys are going to be rolling in the dough regardless of what happens, and they need the small companies. That might be another reason they are conflicting: the big guy needs the little short-term loan lender, which might be an ego thing.
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.
One of the obvious conclusions is that the big banks and financial institutions can't stand the small short term lenders, mostly because they are expanding. That's inevitable.
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Read up on short-term loan. Or you can read how to make money fast if you need fast money.
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