Check Cashing Store

[Gaulkin]

Anyone have experience working/running a check cashing store? Just wanted to hear some basic information about the business, just considering buying one down the line.

[greggomatic76]

I've never personally run one but a friend of mine was involved in one. Main issue...collections. Especially with the economy in the situation that it is. You can make a killing IF you can get people to pay...otherwise, not so successful. Last year he had to quit because he ended up having to do all the collections himself (couldn't afford help) and just couldn't hack it.

[Gaulkin]

I've never personally run one but a friend of mine was involved in one. Main issue...collections. Especially with the economy in the situation that it is. You can make a killing IF you can get people to pay...otherwise, not so successful. Last year he had to quit because he ended up having to do all the collections himself (couldn't afford help) and just couldn't hack it.

Yeah i read its a very hands on business and i was wondering how you would get people to come to your check cashing store over something else. Seems like there is not very much growth potential in a business like this one.

[greggomatic76]

Very true, the growth potential comes from the "stickiness" of the financial situations of those in the area. I've heard (not sure if it's true) that repeat customers are few and far between once they realize how much interest they are paying and how quickly it adds up.

[stand856]

A different cash checking idea would be, cashing paychecks for people that can't get checking accounts. Ie they sign over their paychecks to you, you give them cash and then deposit their checks in your account.