Montreal, Canada (PressExposure) October 14, 2009 -- New legislation proposed by the government of Alberta states that payday loan companies will no longer be able to administer rollover loans. This places payday owners at a great disadvantage concerning outstanding loan debts.
BHM Financial Group is now offering some relief to payday owners in Alberta by providing them with a solution to these recent legal alterations. Payday facilities can now offer their clients BHM Financial car title loans.
Since payday loans are short term loans, usually paid back with the borrower's next pay cheque, rollovers are used by payday lenders as a method of extending loans to collect payment on any amount that is outstanding. By offering debtors car title loans through BHM, in place of outstanding debt, payday facilities will be able to gain back any amount of money that would otherwise be lost due to new rollover legislations. BHM Financial will essentially "buy" an outstanding loan resulting in a clean slate for both debtors and payday facilities.
When debtors are granted a BHM car title loan, these individuals will be able to pay back this loan amount in monthly instalments made to suit their budget. Since loans are completely paid off at the end of the loan term, no rollovers are necessary. Additionally, debtors will be happy to learn that BHM loans are provided at lower interest rates than those charged with a standard payday loan. Payday facilities that take advantage of BHM's car title loans will be able to turn lost profit into additional profit by offering clients an alternative to rollovers, and by offering larger loan amounts.
Facilities that choose to present their clients with BHM's car title loans will earn up to 10% commission per loan. These secured loans allow payday owners to offer clients larger loan amounts of up to $10,000 per loan. Some additional benefits to payday lenders are that BHM will fund car title loans, collect loan payments, and handle all loan documentation leaving little to no effort on the part of the payday lender.