re: If you had $60k cash to start a business

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How exactly does that work? Someone needs $100 and comes in the door. You get them to agree to pay back $120 in 30 days and give them $100.
How do you know they will or collect if they don't? It's not a pawn broker deal, is it? Do you get some collateral?

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They write you a check for $400, you give them $350 cash, and the $400 check will be cashed on their pay date. Ideally what you really want is for them to return the day before pay day, give you $50 not to cash it...that can continue in perpetuity. The lowest APR that you can earn, if they borrow for a full 2 weeks, is about 325%, using my example. I may have a few details wrong, and there is employment verification via pay stubs I would think, etc.
It's a cash cow, but you really are taking advantage of people, as many of them have outstanding loans at other operations (a single operations can only have one outstanding loan per person, I believe). But on the other hand, if you are about to have your water turned off, it does provide a short-term need, IF you pay it back in too weeks.
And then a company like Western Sky, offers a service to people who have amassed a ton of payday loans, to borrow 10K to get them paid back. Their interest is a paltry 180% or so. You've seen their commercials - the Indian lady saying "our money's not cheap, but better than a payday loan".