What exactly is a PayDay Advance loan? As one of the key factors driving Cash Converters positioning among the most profitable franchises in South Africa, any potential franchisee would want to know more about this.
What is it, and how does it work?
PayDay Advance is a loan option which allows our franchisees to offer their customers a short term cash loan against their customer’s next salary. All it takes to get them started is to go through a quick application and qualification process.
The first step in this process is to evaluate the customer, checking that they are permanently employed, are paid electronically and are not under debt review. After all, we are one of the best franchise opportunities because our customers trust us to take every precaution against landing them in bad debt. This concern for our customers keeps them happy and keeps them coming back.
At the end of the process, on payday, the loan is directly debited from the bank account into which the customer is paid. That is why it is necessary to ensure that they are paid electronically before providing the loan, ensuring an easy transaction and minimising risk for all involved.
How can customers access their loan?
For the safety of the customer and the store, all PayDay Advance loans are paid onto a Cashies Card. This card functions like a debit card, meaning that customers have immediate access to the full funds once loaded, without the risk of carrying cash.
Should the customer wish to withdraw the money as cash though, they can do so. An added benefit for customers to enjoy is the fact that the first withdrawal, of any amount, from an FNB ATM does not carry bank charges.
What if the customer cannot pay back the loan?
What puts Cash Converters ahead of most other profitable franchises in South Africa is the fact that we have strategies in place to deal with defaulting loans, while still retaining those customers. The secret lies in continuing to cater to the customer’s needs.
If a customer is unable to pay their loan back, we encourage franchisees to sit down with them and work out a solution that benefits both parties. Many times this can be handled by allowing the customer to sell an item to the buy shop to make up their repayment. This being the easiest and most basic solution for both parties.
Interested in learning more?
Should you have any further questions, or you are intrigued by the business model which has made Cash Converters one of the best franchising opportunities available, then we would be happy to meet with you. Simply contact us and we can get the ball rolling towards setting you up to join our rapidly expanding business.