Market Recognizing Value of Cash Nows FDIC Banking Services

Monday 17 January 2005 09:00 CET | News

Cash Now Corporations FDIC banking services, which enable payday loan businesses to expand their customer base and revenues while reducing risks, are generating significant interest in the marketplace.

Cash Nows FDIC bank affiliation program gives payday lending companies the ability to operate under an FDIC bank charter, equipping them with significant advantages over their competition. For example, many payday lending companies decline to risk lending money to potential customers who lack bank accounts. But those with an FDIC bank charter can open a bank account for that customer, making the transaction safer and exposing the business to many more potential customers. Additionally, some states require a bank charter when conducting face-to-face loans. Companies that lend money on a face-to-face basis under an FDIC bank charter are lending the banks money, not their own capital. This virtually eliminates risk, since the bank is solely responsible for collecting its money. Additionally, an FDIC bank charter provides instant credibility.

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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce