interest rate on $500k, page-14

PP look at this way. If someone came to you for a $500k loan and you knew they'd likely pay it back in 2 days... even at an extortionate interest rate of 100%pa why would you bother filling out the paperwork and doing the due dilligence? 100% @ 2 days on $500k = $2.5k It would cost you more in legals and wasted time. Hence establishment fee. Cash Converters loans are structured the same way because they are too short term to recoup costs via interest alone, but with much lower rates than 100%.