Investing in cash advance

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Forum -> Household Management -> Finances

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amother

Thu, Sep 22 2022, 6:49 am

Anyone have experience and can chime in?
I asked my Rav who said it’s ok if no loans are given to Jews (ribbis)

theoneandonly

Thu, Sep 22 2022, 8:06 am

Stay away. We had a recent horror story. Feel free to pm me for info.

amother

Tan

Thu, Sep 22 2022, 8:37 am

Oy. Just no. It's the lowest way you can make money.

amother

Whitewash

Thu, Sep 22 2022, 8:40 am

There are ways to do it right but it takes a lot of learning

amother

Buttercup

Thu, Sep 22 2022, 8:48 am

How can you ensure that you are not giving a loan to a Jew?

amother

Thu, Sep 22 2022, 3:15 pm

amother Tan wrote:

Oy. Just no. It's the lowest way you can make money.

What does that even mean?

amother

Thu, Sep 22 2022, 3:16 pm

amother Buttercup wrote:

How can you ensure that you are not giving a loan to a Jew?

I was told if the person running the investment seems to be a frum Yid I can trust that he’s not loaning to Jews if he says that. I would ask more about how the process works though.

amother

Hyacinth

Thu, Sep 22 2022, 3:18 pm

Isn’t it basically loans with huge huge interest for desperate people?

amother

Thu, Sep 22 2022, 3:19 pm

amother Hyacinth wrote:

Isn’t it basically loans with huge huge interest for desperate people?

For businesses. Not individual people.

amother

Fern

Thu, Sep 22 2022, 3:39 pm

amother Tan wrote:

Oy. Just no. It's the lowest way you can make money.

You’re right, I should tell dh he’s better off being a drug dealer or harlot. Much more respectable than making an living out of giving money to people who can’t qualify for business capital from anywhere else.

amother

Pewter

Thu, Sep 22 2022, 4:00 pm

I don’t know if this is the business model but there are industries which do take out loans based on accounts receivable.

For example many companies in the clothing industry rely on “factor” plans because they need money to find production of the clothing but aren’t paid by stores until delivery and so the collateral is the inventory. This is a respectable business as it is even covered by the Uniform Commercial Code because of the liens apron the collateral.

Some law firms that do a lot of contingency litigation rely on specialized lenders to fund them because there is no money until settlement or the end of the trial and appeal. These lenders specialize in evaluating the worth of lawsuits.

Many construction companies rely on bridge loans to fund construction with the collateral being the buildings that are being built.

Of course there are also businesses which lend money to desperate people and businesses which are just losing money and so they are desperate because they want to avoid closing the business. Obviously only a loan shark type of predatory company would loan to a company that is on the brink of failure.

amother

Eggshell

Thu, Sep 22 2022, 4:44 pm

amother Fern wrote:

Are those the only options? Drugs, prostitution, or loan shark? Obviously it's not illegal but it's not the cleanest business out there making money off others desperation. These loans are most often not in the client's best interest.

amother

Fern

Thu, Sep 22 2022, 6:25 pm

Like any industry, there honest people and there are also unscrupulous individuals trying to make a quick buck.
OP, If you invest, make sure it’s with a reputable company/person and make sure to do your own research on the owner of the company.

amother

Blush

Thu, Sep 22 2022, 6:38 pm

amother Fern wrote:

Are you saying those are your colleagues in this business

amother

Cerise

Thu, Sep 22 2022, 8:19 pm

unfortunately we've had to take out these loans and honestly there are some horrible people in the business of taking advantage of desperate people. please stay far far away..

amother

Pewter

Thu, Sep 22 2022, 8:21 pm

Could someone explain why it is okay to cheat a non Jew or take advantage of them because they aren’t Jewish.

How wouid you feel if you read that someone was told by their religious leader that it was okay to cheat someone so long as they were Jewish. 🤷‍♀️

amother

Blush

Thu, Sep 22 2022, 8:32 pm

amother Pewter wrote:

That is unfair.

Despite some unsavory aspects here noone is cheating or taking advantage. There is a cost to borrow money and here the cost is very high because the risk of default IS SUPER HIGH. There is a reason people are borrowing in this way and that's because commercial lending places don't trust them

This particular type of loan has nothing to do with being Jewish. You can't loan any loan to yidden. You can't invest in a regular bank and loan yidden. You can't charge someone Jewish even 1% annual interest (I.e. ridiculously little). Riibis is a specific mitzvah and it is tied to chessed.

. There are ways to get around it with heter Iska etc. But that won't work here w cash advance.

amother

Buttercup

Thu, Sep 22 2022, 8:37 pm

amother OP wrote:

I was told if the person running the investment seems to be a frum Yid I can trust that he’s not loaning to Jews if he says that. I would ask more about how the process works though.

Considering how many assimilated Jews there are today I doubt anyone can know for sure that a lead is Jewish.

amother

Pewter

Thu, Sep 22 2022, 8:37 pm

amother Blush wrote:

Pease the implication is that these are predatory loans and not a bank loan or being a mortgage broker.

No one was asking whether they should become an investment banker or loan officer.

It is very clear that the sentiment is thst you can exploit non Jews.

amother

Blush

Thu, Sep 22 2022, 10:11 pm

amother Pewter wrote:

I actually think that their shaila and answer had nothing to do with predatory or not. That makes absolutely no difference.

It's not so simple to own a regular bank. You really can't provide a regular loan with interest.

You can become an investment banker or loan officer. There you are an employee, not the one providing the loan.

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