LeadClick Media says payday loan leads business is booming
May 8, 2006 - San Francisco, California
A leading San Francisco-based Internet lead generation firm and pioneer of performance-based, cost-per-action marketing solutions, reports lender demand for marketing services that generate Internet payday loan leads is quickly reaching a fevered pitch.
LeadClick Media has helped payday loan lenders to expand their business to serve those customers who need emergency loans services, but may have too much pride to enter a traditional brick and mortar check cashing store. "The convenience and anonymity of the Internet application process for a payday loan has opened up a new segment of the U.S. population that can benefit responsibly from cash advance loan services" says Robert Afshar.
Fueled by the economy, a gap in traditional lending services and savvy marketing that leverages the consumer trend to conduct financial business online, micro loans (a.k.a., cash advances and payday loans) have nearly quadrupled in the past four years to a $40 billion industry. According to a Marketdata Enterprises report, the payday loan industry serves more than a quarter of the U.S. population.
This phenomenon is a result of a growing number of people who require periodic financial assistance and a new generation of lenders who can meet that demand. While the micro loan industry was created to meet the needs of one-time emergency borrowers, a market not served by traditional financial institutions, more than 90 percent of the business today is driven by repeat customers. "This statistic is troubling and some indication that many people are not using these loans responsibly: Rather than for emergency situations, many consumers are relying on them to bridge ongoing financial shortfalls" says robert afshar
The micro loan industry has also benefited from the exodus of large lending institutions that failed to earn enough from these short-term loans to cover their operating costs. This opened the door for smaller lenders and transformed the industry from exclusively check-cashing storefronts in the 1990s to a growing number Internet lenders and referral sites in 2005.
PressMethod, Robert Afshar, LeadClick Media Writer
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