Despite the fact that the PayDay lending industry is fairly fragmented and disjointed, on the whole the industry is very large. Not only is it extensive, the industry has been growing extremely rapidly over the last few years. In the year 2000, there were between seven thousand (7,000) and ten thousand (10,000) PayDay lending offices in operation.
Just three short years later, in 2003, an estimated twenty-two thousand (22,000) offices were in operation, more than doubling the size of offices in existence for the benefit of the industry. The value of loans in the industry during the same time period grew from six billion dollars ($6,000,000,000.00) in fees in the year 2000 to more than forty billion dollars ($40,000,000,000.00) in fees by the year 2003. Part of the reason that the field is so popular and lucrative is due to the fact that the industry is able to enjoy very high profits due to the returns on the money that they lend the individuals in need of short-term loans.
Today, the industry has increased in size even more. In fact, there are some sources that have gone on the record as believing that many statistics today have quadrupled in value from that which were estimated in the year 2000. In general, the business on a whole is operating in more than thirty-five states across the United States of America at the present date.
Almost everyone will face a situation in their life at one point in time or another where they are hard pressed for money and they are just not sure how they are going to pay their bills, get their groceries and take care of themselves from one paycheck to the next. Whether this is a result of the economy, poor decisions on the part of the individuals when it comes to finances or emergency situations, or some other reason, these things happen. PayDay lenders offer individuals a quick and simple way out when they need financial assistance from one paycheck to the next.
Some financial institutions do not give out loans for short periods of time. This can be frustrating for some people who need short-term loans since individuals who borrow money have to pay interest on the money that they borrow from their lenders. Interest is calculated by looking at the amount of money that is borrowed over a specific period of time. The longer an individual borrows money, the more interest they will have to pay. As a result, most financial institutions are looking to lend money for longer periods of time, when they know that they can make money due to the interest on the loan. Short-term loans are decidedly less profitable. While most people with good credit can get loans at virtually any time, the situation is often not as optimistic when it comes to individuals that have less than impeccable credit. As a result, individuals with less good credit typically have more difficult getting a loan. PayDay loans are available even to individuals who have less well-documented credit, making the loans helpful and advantageous for all types of individuals in need.