Hello, all;
I have what I believe to be a good, solid idea, but I have no clue how to get started. Basically, it's an online financial service that takes some of the pressure off living paycheck to paycheck. One of life's little problems is that you usually don't get to chose when to pay your monthly recurring bills - they usually all arrive at either the beginning or the end of the month. Using this service, you would submit your monthly recurring bills (mortgage, car payment, etc) to us, where we would examine them and say "send us X amount of dollars per week or Y amount every two weeks and we will remit your bills for you."
This would have the effect of flattening the "Debt curve" that a lot of people experience, where they're broke one payday and have to scramble to survive until next payday. Using this system, you would have the comfort of knowing your bills would be paid on time and knowing exactly how much money you'd have left over after every payday.
Of course, we wouldn't be able to take bills that vary like utility bills, or bills that go to small local outfits that have no way of receiving electronic payments, like Bob's Custom Stereo.
Of course such a business would have to have a great technology base and rock solid IT security. Additionally, it would have to have a significant cash reserve to startup because we are basically covering people's bills. What kind of regulations would we have to follow? is this technically a bank, or more along the lines of a payday loan store? Where do I begin?

Joe Buckmaster

I think it is an interesting idea, but here's a thought.

Financial services and banking is probably one of the most regulated business industries in the world; certainly in the US and Canada anyway.

That said, contact your state Government financial services administrator to find out what the rules are governing offering such financial services. In essence you are offering "banking" services and I imagine would be governed at least by the State board, if not the Federal one.

Good luck with it.

Tina Brooks, VP Marketing
Brooks Pepperfire Foods, Inc.
Makers of Peppermaster Hot Sauces
http://www.peppermaster.com

Eat more peppers!

Hi Joe-

I have worked in the financial world for over 12 years. There are many things that you should research before beginning this business. First of all, you will need to find a bank that will accept third party checks. In this day and age, banks do not care for "check cashing" stores. If you plan on holding your clients money, you will need FDIC insurance....which is very expense. Then you have to worry about your clients not having enough funds to cover their bills. If your clients are already living paycheck to checkpay, they probably do not have good credit history. Can you afford to cover other people's bills, expecially if you never receive payment. Personally, I would try to start with a different class of clients.

HNH