THE BLOG

13
May

How to Start a Pawnshop Business

Add Pawn -Collateralized Loans

Add Pawn & Collateralized Loans to Your Store

Collateral Lending Made Easy: Turn-Key Pawn for Stores

Add pawn  to your existing business. Everything included to make this easy for you!

Are your profits down? Is your check cashing, payday loan or cash for gold revenue plummeting?   Regulatory environment more difficult? Going to “lose” your bank account?

Pawn-Safe has the solution for you. Pawn-Safe delivers a turn-key program that offers increased revenues, non-MSB regulations, and a stable regulatory environment.   Pawn-Safe is a robust software and business model designed to help small financial service store fronts benefit by providing collateral lending as an additional service to their clientele.

  • Pawn-Safe Delivers the Whole Package
    • Software
    • Training
    • Collateral Valuation
    • E-Commerce Management
    • Reporting
  • How Do You Benefit by using Pawn-Safe
    • Increased Revenues
    • Increased Traffic
    • Additional Service to Satisfy your Customers
    • Better Utilization of Employees and Location
    • Added Value to your Business
  • What is Required for Starting a Pawn-Safe Program in your Store
    • Space – You need space for a safe, 16 feet of storage shelving, internet access, a laser printer, a label printer, a hand scanner (optional)  and some work area. (Approximately 150 sq. ft. will get you started)
    • Personnel – Initially most stores use only existing personnel
    • Capital – Start up and Equipment Costs, Funds to support loan growth
  • Our Program is Not Just Software   It includes:
  • Valuation Buying / Selling Software  The software will enable you to determine the value of an item your customer wants to sell or pawn with you and tell your employee what they should pay or loan for the item based on your specific profit criteria.
  • Online listing Software  The software will value items by searching the internet and return a suggested value configured by you according to the profits you want to maintain.  The software will auto list items on Amazon and you can keep the items out for sale on the sales floor at the same time.  Whichever selling venue sells the item first the software will de-list from the other venue.  On Amazon the software will re-price once a day to either lower or increase the selling price of your item to maintain an asking price equal to the lowest price on Amazon less  1 penny.
  • Training  Software procedures, collateral evaluation, inventory control, police procedures and relations.
  • Licensing The team at Pawn-Safe knows exactly what licensing you need (if any) and the fees you can charge your customers. We’ll help you navigate this.
  • Ongoing Support   Software Support (database and procedures), collateral valuation  databases and calculators,  E-Commerce management, valuation up-dates.

Request more information and see how your store can begin making more money immediately: PAWN-SAFE Click here.

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05
May

$7.50 to Borrow $100. Workplace Scam? More Disruption in Small Dollar Loan Space?

Workplace cash advances trump all other payday loan/small dollar loan solutions for employees. Opportunities for entrepreneurs are here – *NOW

Employer Workplace Advance“Workplace advances”  enable an employee to access up to 50% of their earned wages in anticipation of their paycheck at SUBSTANTIALLY lower rates than those offered by payday loan companies; we’re talking $1.50 fee for $20 advances. The “killer app” is the fact that neither the lender nor the employer require a lending license [it is NOT a credit or a loan], nor do they need a collections department, and these workplace advances experience ZERO defaults.

How are small dollar advances offered to employees for $7.50 per $100?

  • How’s it work? Via patented software integrated with the employer’s time and attendance system, an employee can immediately determine their earnings mid-pay cycle. [It’s Tuesday – they need some $$] An employee may access up to 50% of their earned pay – NOW.
  • Employers, who choose to put their employees financial health first, enroll in the program free.
  • An ATM style kiosk is placed at the sponsor employer’s place of business, an app is downloaded by the employee to their phone & a website is made available.
  • Anytime an employee needs some quick cash, wants to transfer money to a loved one (domestic & international) or wants to pay a bill, they’re immediately funded based on how much they’ve earned so far from their employer. [50% maximum of current net earnings.]
  • No licenses required. [The CFPB already evaluated this software technology.]
  • This service enables employees to avoid more expensive payday loan, car title, installment and line-of-credit financial products.
  • Employee funds are credited to their bank account or to a pre-paid debit card.
  • Transactions initiated via the kiosk, employee’s phone or a website.

*Opportunities?

  • Kiosk machines are approx. $6,000. Each machine requires $20K – $30K in cash to fund the kiosk “vault.” Not a franchise. [Huh… do you really need to employ the kiosk footprint? Perhaps just implement the phone app throughout the employee base?]
  • Employers having 300+ employees are desirable. [Note: the phone app and the web portal enable employees in remote locations to access these inexpensive, emergency funds as well.] Again, this new service is free to employers. Are you an employer? Or, do you have the ability to introduce this
    opportunity to large employers?
  • Your help is needed to scale this “launch.” Have an idea? Click here: Workplace Money Service Ideas

Here’s an example of a similar service by Think Finance: Click to review a PDF.

Here’s a Wall Street Journal piece on “Workplace Advances:”

“The number of short-term and high-fee loans that are offered to employees in their workplaces have increased, The Wall Street Journal reported. For the past three years, at least six non-bank lenders have begun to pitch loans to firms and payroll vendors. Citing estimates taken from various lenders, the report said employer-based loan programs are now currently available to over 100,000 employees. Forecasts from company executives revealed that the number could grow in the next few years to reach over 10 million workers.” Read the entire piece here: WSJ

Again, do you want to learn more? Submit your inquiry here: Workplace Money Service Ideas

FAQ’s:

* More about the software platform: Do you need Answers, eCash, eChecktrack, Epic, IntroXL, TranDot, Infinity… 

NOPE! The kiosk “software platform is patented and approved by the CFPB;” patented technology/software that integrates with the employer’s payroll system. ADP for example. Sonic Burgers payroll service for example. The Team offering the kiosks do the integration in conjunction with the employer on behalf of the kiosk owner – you for example.
* Can we buy kiosk machines and run them ourselves?
   Absolutely! This is the most exciting aspect of this brand new model! It’s not a Franchise; at least no Team has structured it this way – yet.
* Do we even need to use kiosks?
   Let’s talk… why would you… it’s really about the employer and the employee’s phone!
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04
May

Vermont AG: $1M CRACKDOWN ON Payday Loans

ATTORNEY GENERAL ANNOUNCES $1,000,000 CRACKDOWN ON ILLEGAL LENDING

Press Release: Vermont Attorney General William H. Sorrell launches a sweeping effort to address the growing problem of illegal and predatory online lending. “Online lenders are taking advantage of thousands of low and moderate income Vermonters. They offer illegal short-term, very high-interest loans via the internet.” said Attorney General Sorrell. “These predatory loans are designed to entrap consumers in long-term debt. Fortunately, we have strict lending laws to combat such schemes and we are announcing an aggressive, comprehensive effort to keep these lenders out of Vermont.”

The Attorney General announced actions against lenders and their payment processors under Vermont’s Consumer Protection Act, because the lenders are unlicensed and charging interest of up to 600-700%; 300% on average.

Vermont has long standing laws requiring that non-bank lenders be licensed and limits the annual interest rate on unsecured loans to 12-24 percent. Payday loans (loans contingent on a postdated payment instrument) are explicitly banned.

In May 2012, the Vermont Legislature enacted the strongest law in the nation on predatory internet lending, making lenders who fail to comply with lending requirements and those who process their electronic loan payments directly liable under Vermont’s Consumer Protection Act. The law also imposes direct liability on any person or business which knowingly and substantially assists illegal lenders.

The Attorney General would like to thank the Department of Financial Regulation (DFR) for its assistance in the enforcement efforts and the Legislature for leading the nation in the passage of powerful laws to combat illegal lending.

The Attorney General has issued a report, describing the illegal lending problem and his Office’s activities to date, including:

  • Settlements with the top three largest known lenders and one payment processor, resulting in at least $1,000,000 in potential refunds and loan forgiveness to over 1,600 eligible Vermont consumers, and $90,000 in payments to the State;
  • Lawsuits against two illegal lenders and one payment processor;
  • Publishing all known illegal lenders in Vermont (81 to date), and sending demand letters to cease and remedy all illegal loan activity in Vermont;
  • Letters to third parties who assist lenders, or are in a position to help stem the flow of illegal lending, such as television, radio, and cable networks, internet search companies (Google, Yahoo, Microsoft), industry trade groups, financial institutions, and local employers.

Copies of the report and the documents described above are available at the Attorney General’s website. The report includes consumer tips, such as how to: (i) seek alternatives to online loans; (ii) check if a lender is listed as licensed with the Vermont DFR; (iii) file a complaint with the Attorney General’s Consumer Assistance Program regarding an illegal loan; and (iv) keep informed on future lending issues.

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01
May

NY and VISA Attack Payday Loan lenders Use of Debit Cards

Andrew M. Cuomo & Benjamin M. Lawsky
Governor Superintendent

April29, 2014

Martin Elliott
Senior Director Brand Protection
Visa, Inc.
900 Metro Center Blvd.
Foster City, CA
94404

Dear Mr. Elliott:

The New York State Department of Financial Services (“DFS”) has discovered a disturbing new tactic that online payday lenders are using to illegally withdraw funds from New York consumers’ bank accounts.

As pressure has mounted surrounding online payday lenders’ abuse of the Automated Clearing House (“ACH”) network, some payday lenders are migrating to
debit cards to process illegal payday loan transactions with New Yorkers. Fortunately, this trend appears to be in its early stages and the Visa debit network has strong protections that prohibit the processing of illegal transactions.

This letter confirms proactive commitments that Visa has made in discussions with DFS to quickly halt the processing of illegal payday loans through the
Visa debit network before Continue Reading..

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