THE BLOG

25
May

Startup Opportunity with Experienced Tribe Lender

Opportunity: Synopsis of a proposed capital raise for a De Novo Tribe portfolio by an experienced payday loan/installment lender.

Proposal for Trihouse to Connect Operators and Capital Providers 2017

Goal:

Experienced Lender with capital is re-entering the small dollar subprime lending space and seeks additional capital to partner with in order to grow and scale the portfolio.

Lender is launching a new Tribal Lending Portfolio having a minimum starting capital of $4-$6M. Lender will contribute 10-20% of the capital into this deal depending on the final deal structure.

Should a capital provider prefer to employ a “state-by-state” licensing model, this Lender is “open” to this strategy. However, the capital required is at least 2x to be viable.

Additionally, this experienced Lender is open to managing a portfolio for a sovereign Native American Indian Tribe.

Background:

  • Lender has seven+ years of experience in underwriting, origination, and servicing loans focused on the underbanked, sub-prime consumer segments.
  • Lender manages the complete personal loan lending cycle from acquisition through payoff or collections.
  • Lender will manage all the day to day operations of this new portfolio.

Lender previously launched a $1M+ small dollar/sub-prime/installment portfolio and successfully exited by selling the portfolio to a larger group.

  • Lender has launched and serviced multiple online lending products (Merchant Cash Advance, Pre-Settlement Funding)
  • Lender worked on a team in the Prime Consumer Online Lending Space (Lending Club)
  • Previous Lender entrepreneurial ventures:
    • Started an online marketing company that specialized in online lead generation with in-house call center.
    • Lender’s first entrepreneurial venture was starting, and successfully merging, an accounting outsourcing company into a larger competitor
    • Lender started his career on Wall Street (Bear Stearns & others) as an institutional sales/trader.

Infrastructure in Place:

  • Lender to manage the entire operation
  • Director of Operations (who worked with Lender on previous portfolios
  • All Operations to be done in house (no outsourcing of call center)
  • Data analyst
  • LOI in place with a specific Tribe having a 5 year Term and a Pre-Negotiated 5 Year Renewal Option.

What Lender requires of a Partner:

  • Financial Partner who brings capital to the table. The capital will remain in the business for a 3-4 year period.
  • It is imperative the capital partner understands the lending business
  • Preferred method of capital monetization is a straight debt deal
  • Lender is open to a debt/Equity Hybrid

IF THIS OPPORTUNITY IS OF INTEREST TO YOU, EMAIL: TrihouseConsulting@gmail.com your complete contact info and interest. I will arrange a private introduction and then get out of the way. No cost to you!

Share
08
May

Fewer Companies Settle with CFPB

The Business of Lending is the Oldest Pofession.

The Wall Street Journal [which I have appeared in on several occassions] ran an interesting piece on the CFPB. The fact is, fewer companies are willing to settle with the CFPB today. This is huge. 

Fewer lenders willing to settle with CFPB = more investors/capital scrambling to enter the B2C and B2B alternative lending space. In spite of the competition from the balance sheet and off-balance sheet lenders, my phone is ringing. On the other end of the call? Entrepreneurs, capital groups, technologists… contemplating entrance into the business of lending. Lenders find it hard to ignore the 30%+ net returns available. The banks simply cannot service the demand for small dollar loans. Lenders continue to salivate due to the low cost of money coupled with ease of entry, mobile technology, tribe sovereignty, a more stable and defined state regulatory environment…

Share
Share
Share