[FUNd]

You identified the issue perfectly. If folks took ONE advance at those rates, there wouldnt even be this type of discussion either on this forum or on Capitol Hill. Problem is (as you highlight), it's expensive to acquire customers and most of the industry lives off renewals. And that 1.4x for five months (with a double dip renewal at 3.5 to 4 months) ends up renewing multiple times because they don't have a choice. In order for any form of lending/finance to work, the benefit (return) from the capital has to out weight the cost -- and that's impossible at an ongoing cycle of 1.4x (with a double dip, that's really a 1.55x+ over five months).

Have to figure in federal, state, and local business fees and taxes into the ROI too. So at 100% margin, they about break even at a 1.4x.