How to Start a Florida Payday Loan Business
For years, the State of Florida has enforced specific safe-harbor payday loan laws enabling Floridians to use a payday loan to solve a financial emergency when appropriate. The CFPB would like to take these products away and override the good work performed by the Florida State Legislature. Kendrick Meek, who wrote this piece, is a former U.S. Representative who represented Florida’s 17th Congressional District from 2003 to 2011. He previously served in the Florida House of Representatives from 1995 to 1998 and Florida Senate from 1998 to 2002.
Short-term loans: Providing solutions to financial bumps in the road
As an African-American growing up in the Liberty City section of Miami-Dade County, I saw many families endure financial hardship from time to time. Unfortunately, many of these families, when left with no other options, turned to dubious methods and sources for help getting over these temporary challenges. As often as not, the “solution” was worse… Continue Reading >>
How to Start a Canada Payday Loan Business
The volume of payday loan transactions is growing in Canada. Like the US, the Internet is playing a major role and continues to disrupt the payday loan brick-n-mortar space. There’s little doubt that consumers in outlying Canadian provinces prefer the ease Canadian payday loan internet companies offer them when in an emergency financial situation. Better to get a payday loan online than to trudge down to a store through inclement weather while saving and hassle.
Regarding financial products, what’s true for the US is true for Canada. “As Internet technology advances, borrowers will likely demand a faster and more cost-effective lending process, which is increasingly moving toward online and mobile-based platforms,” said Canaccord analyst Scott Chan.
“Mogo has already been operating for 10 years. It processes 30,000 loans a month, including personal loans of up to $35,000. It also offers shorter-term loans that are similar to payday loans, although at half the rate of most payday lenders.”
“We are finding customers increasingly want access to other products delivered with the same level of convenience and transparency,” Mr. Feller said. “This is where the market is going, especially for the millennial generation – they will want their financial solutions delivered digitally, on demand.”
Mogo is a Canadian payday loan company with big plans for future growth. Having gone public, Mogo has access to additional funding enabling Mogo to reach out to all Canadian provinces where safe-harbor legislation exists. Continued branding and national advertising will certainly enable Mogo to increase their loan portfolio. Currently servicing 30,000 loans a month, the sky is the limit.
For both borrowers, investors and payday loan lenders, Mogo’s website is worth a visit as well.
And if you are trying to start a Canadian payday loan business, consider investing in our “How to Start or Improve a Payday Loan Business.” [We cover all Canadian provinces as well as the US.
Marketing Ideas: Who Uses Payday Loan Products.
To improve your marketing and sales initiatives for your payday loan company, you must understand the customer. Who uses payday loan and installment loan products to solve their temporary financial emergency?
For insight, look no further than the 10K submitted by Community Choice Financial.
“Community Choice Financial Inc. (“CCFI”) is a holding company and conducts substantially all of its business operations through its subsidiaries. Those subsidiaries are leading providers of alternative financial services to unbanked and underbanked consumers through a network of 530 retail storefronts across 15 states, an internet presence in 24 states, and a small internet presence in the United Kingdom. We focus on providing a wide range of convenient consumer financial products and services to help customers manage their day-to-day financial needs, including consumer loans, check cashing, prepaid debit cards, money transfers, bill payments and money orders. Although the majority of our customers have banking relationships, we believe that our customers use our financial services because they are convenient, easy to understand, and, in many instances, more affordable than available alternatives.”
“Whether through our internet platform or retail locations, we strive to provide customers with unparalled customer service in a safe, clean and welcoming environment or with the privacy and convenience of our internet based services. Our internet platform is easy to use and provides an alternative for customers who may prefer the convenience and benefits of the internet. Our retail locations are located in highly visible, accessible locations that allow customers convenience and immediate access to our services. Our professional work environment combines high employee performance standards, incentive-based pay and a wide array of training programs to incentivize our employees to provide superior customer service. We believe that this approach has enabled us to build strong customer loyalty, putting us in a position to expand and continue to capitalize on our innovative product offerings.”
“We serve the large and growing market of individuals who have limited or no access to traditional sources of consumer credit and financial services. A study published in 2013, conducted by the FDIC indicates 27.7% of U.S. households are either unbanked or underbanked, representing approximately 67.6 million adults. As traditional financial institutions increase fees for consumer services, such as checking accounts and debit cards, and tighten credit standards as a result of economic and other market driven developments, consumers have looked elsewhere for less expensive and more convenient alternatives to meet their financial needs. According to a 2014 report from the Federal Reserve Bank of New York, total consumer credit outstanding has declined $1.4 trillion from its peak in the third quarter of 2008 through 2013. This contraction in the supply of consumer credit has resulted in significant unmet demand for consumer loan products.”
We serve a large and growing demographic group of customers by providing services to help them manage their day-to-day financial needs. Our customers are primarily working-class, middle-income individuals. Based on third-party market surveys, we believe the following about our customers:
· they have an average annual household income between $20,000 and $50,000, with approximately 17% in excess of $50,000;
· over 70% are under the age of 45;
· over 50% are between 25 and 44 years of age;
· approximately 50% are male and 50% are female;
· approximately 50% have attended at least some college;
· over 95% have access to the internet;
· over 70% own a home computer;
· over 55% have access to a computer in the workplace; and
· approximately 75% have access to a checking account and choose to use our services as a means of managing their financial needs.
Our customers generally are underserved or unserved by the traditional banking system and choose alternative solutions to gain convenient and immediate access to cash, consumer loans, prepaid debit cards, money transfers, bill payments and money orders. We believe that our customers use our financial services because they are quick, convenient and, in many instances, more affordable than available alternatives. Additionally, we provide them with a safe, welcoming environment to use our services.
So, bottom line? Your customer avatar is the typical Walmart customer. They want access to cash quickly in a safe, private environment without a lot of hassle. It’s not rocket science. Don’t overthink it!
Need some specific action items for payday loan marketing? Payday loan marketing ideas.
Operation Choke Point Payday Lenders
Like Newt Gingrich or not, his assessment regarding the FED’s ability to make it impossible for legal industries to operate is accurate. “Operation Choke Point” has driven several of my clients to pay “finder’s fees” of as much as $45,000 to anyone able to introduce a willing bank or credit union to provide a basic depository account for payday loan, MSB, check cashers and car title loan lenders. These are legal, licensed businesses forced to pay “bribes” for a bank account. And, don’t jump to the conclusion that these “purchased” bank accounts are for abusing borrowers. I’m talking about simple depository accounts enabling a state/tribe licensed payday lender to pay their bills; payroll, vendors, rent, LMS providers…
Sure, you the reader are probably saying, “Good riddance!” But the FED’s are choosing the winners and losers. Today, they’ve chosen gun shops, small dollar credit lenders, collection companies… Tomorrow, it will likely be your industry, your job and your customer who will have their ability to bank “choked-off.”We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”
Immediate download in Adobe Acrobat or choose our printed version. 3-Ring Binder, 8 1/2 X 11, 400+ pages, illustrated. NOTE: If you invest in the printed version, we will email a digital version immediately.
By: Team Trihouse.
Simple, Cheap Payday Loan & Title Loan Marketing Ideas
Yeah, yeah, I know. You need more customers for your payday loan or car title loan business. Every operator cries about:
- More money to loan out – access to capital
- More customers. How to get more customers in your door or on your website
- Improved collections
- More knowledge regarding how to increase profits
My car title and payday loan clients get bogged down with all the small dollar credit marketing options available today:
- Google PPC programs
- Facebook advertising
- Twitter ads
- Mobile friendly websites (NOTE: VERY IMPORTANT TODAY and inexpensive! YOU must show up in Google)
- Pinterest, Instagram, Youtube, Yelp… on and on and on!
Get back to basics. Sure, all these avenues are legit. And, depending on your Team, they all work to some degree. But I suggest you get your house in order first.
- Clean your store up. Inside, outside… paint, shrubs, gardening, curb stones, papers on your walls… CLEAN!
- First impressions make the difference. Yeah, you already know this! So do something about it! Begin by looking at your store for the first time. Aren’t you embarrassed? FIX THIS! Get rid of ALL those “NO” signs all over your location!
- Your sign. GET THIS RIGHT! If you’ve never watched the Profit and Marcus Lemonis, BEGIN! Marcus achieves amazing results by getting back to the basics. Customers see your sign first; hopefully they see your sign. Spend $$ on your sign!
- Employee uniforms. Invest in some shirts with your name and logo. Everyone wears one; clean! It’s an inexpensive branding mechanism and worth a few bucks. Guaranteed, when your employees – and this means you as well – are out and about gassing up or getting lunch – WITH business cards in their pocket, you’ll pick up a minimum of 4 new clients per month.
This Post is getting long. HOWEVER, I have one more cheap car title/payday loan marketing tactic you can employ immediately. It’s CraigsList.
Start using CraigsList.com. It’s simple, cheap and works. We’ve been using CraigsList for 10+ years. Depending on where our store is, we pickup at a minimum 3 new customers every month. Here’s an example of a Craigs List car title loan ad.
DON’T THINK THAT’S MUCH? Think again. If we do 3 new car title loans one month as a result of a free Craigs List Ad, and each loan is $2500 (we’re in Calif.) at 9% interest/fees per month, that’s $675/month generated in gross revenue on a $7500 loan principal. If we average 6 months on each car title loan, we earn $4050 AND our customers still owe us our $7500 loan principal. We have the titles to their automobiles as our collateral.
So, the point? Get off your butt and insist someone on your Team get VERY GOOD with Craigs List advertising.
It’s a no-brainer! It works!!
Are you a payday loan or car title loan lender? Or, do you want to get started as a lender? Need info, help and answers? Get our “Bible.” We are THE recognized training and teaching experts in the small dollar credit lending industry. Have your doubts? Simply go back to your “Googling” for hour after hour. Eventually, you’ll happen onto a car title or payday loan resource in Google’s search results. CALL THEM! Ask the loan management software provider, the lawyer, the compliance consultant, the lead generator… even existing store and internet lenders if they’ve EVER heard of Jer at Trihouse Consulting and the “Bible” we offer for entrepreneurs. Guaranteed, THEY HAVE! Literally, EVERYONE knows us and speaks highly of us! Every payday loan or car title loan vendor, supplier, software company… anyone who is anyone… KNOWS JER, our CEO!
We offer 2 methods to invest in our “How to Start a Car Title Loan Business:”
- Immediate download in Adobe Acrobat: $277.95
- We’ll print and ship it to you: $397.95