With fast
payday loans you can get money quickly. The only proviso is that you are able to pay it back quickly. You don't get any points for guessing when you have to pay it back either, there is a very big clue in the name. For anyone who isn't quite sure and wants to make sure that their guess was right, then it is on the day that you are paid. It is not quite as simple as that though, you cannot be unemployed and say that when you eventually get a job you will then pay back the loan. The lender needs to know that you're already in permanent employment and that you are earning enough to be able to afford the loan, plus interest.
Some people have a problem with the fact that there is interest on a loan. They think that if people have the money to make a loan and they are able to then get it back, it is mere profiteering to charge interest as well. However most people understand that if a lending company did not charge interest there would be no incentive for them to actually make a loan in the first place. The sorts of people who think it is problematic are probably going to be suspicious any time a company is making a profit. If they are making a profit then that means that they are charging more than they have to and they are exploiting their customers, who need something and are willing to pay more than necessary to be able to get it. This is a charge that is often made against payday loan companies because lots of people think their interest rates are too high.
In a sense of course, people are right to be a bit upset about having to pay more than the actual cost. As rational beings, they want to pay nothing for what they get. However they don't expect to pay nothing for things, even things that are essential to them. For example nobody expects to get food for free, they accept that it costs money. We even have to pay for the water that comes out of our taps, and we need that to survive as well. Does this mean that companies are wrong to be making a profit? Of course it doesn't. They have the opposite opinion to the customers, they want to be able to charge an infinite amount for the goods or services that they provide. They don't do that though (and not just because it would be impossible to charge an infinite amount). They don't do it because then people would not be able to afford it and they would never sell anything. Therefore they have to bring their prices down to whatever the consumer can afford to pay. So the producer wants to charge the maximum amount they can and the consumer wants to pay the minimum amount. The happy medium that is found is called the price.
There is nobody, however, who is just a consumer or just a producer. To get money, every consumer has to work, they have to be part of an organisation. That's not always true of course, they might have inherited wealth, but their money has to come from someone who is working or who has worked. Therefore the producer has to make money so that they can pay their workforce. You could say, though, that this simply comes out of the costs aspect, even the owner could just take a salary from the company, there is no need to make a profit. However if all companies acted like that then they would have no money to ever invest. This means they would never be able to expand. That means that the good companies would not be able to do more business than the bad companies. It would not matter how much they reduced costs, if they were not allowed to make a profit then they could never grow any larger as a company. Of course you could say that you simply take out the money for investment, and don't make that a part of the profit calculation. That would be fine except that you could allocate each part of the money in that way and it would never seem as if anyone was ever making a profit.
What profits really mean is that you are taking resources at one price, combining them and creating a product or service which is worth more. That is exactly what they should be doing and there is nothing wrong with that. If your company is making a loss then you are not allocating the resources correctly to make them more valuable and if you continue to do that then it is right that you should go out of business.
Although this has not been applied to payday finance in particular, it certainly does apply equally to fast payday loans as well as other services and goods.
