Seed/Angel Funding with Tribe Lending Enterprise [TLE] & Experienced Servicer

  • The Opportunity: Seed/Angel Funding with Tribe Lending Enterprise [TLE] & Experienced Servicer A highly experienced Team of two founders & a TLE are launching a tribal online loan portfolio in the USA. FOUNDERS’ DETAILS:
  • Founders’ contribute $1.1M cash to this launch
  • Founders’ contribute their lead aggregator company having generated 500K sub-prime consumer leads/month
  • This is not their first rodeo
  • U.S. based Team
  • Tribe lending model with a multi-pay installment loan product in 45 states.
  • Founder(s) previously successfully launched and exited tribe online loan portfolio
  • Founder(s) previously launched a highly successful online loan platform/portfolio in the most competitive, complicated state in the USA
  • Founder(s) previously serviced $20M sub-prime loan portfolio and 40K loans
  • Founders’ are family oriented – obligations, dependents, motivated, strong willed, driven, impeccable credentials… [I always favor these conditions when I collaborate.]
  • Founders’ know their loan product KPI’s. Realistic. Experienced. Well versed in Cost per Funded Loan, First Time Defaults, Customer Acquisition Costs, Lead metrics/costs…
  • Founders’ loan management software platform provides investors with 100% transparency hourly, daily, weekly, monthly… access to all accounting, reports…
  • In-house call center with highly experienced call center operations manager on Team
  • Tribe [TLE] Marketing/Servicing agreement in place with a large, sophisticated TLE – several $10M/$30M+ portfolios. • Supremely customer focused loan product offering financial literacy and credit building
  • ACH, bank accounts, CRA’s, EIN, lead generation… in place.
  • Founders have commissioned compliance officer, TLE employee(s), call center, accounting… Investor(s) • Provide $3M to be deployed year 1
  • Interest rate for investors = 15% to 24% paid quarterly
  • 15% to 50% equity to investors
  • Investor funds to be returned year 5
  • End of year 5, Investor return is $7.4M on $3M investment plus investor maintains their negotiated 15% – 50% equity in the enterprise.
  • Conservative performance estimates!

Year 3 = 80% return on loan portfolio

Year 4 = 100%

Year 5 = 125%

Year 5 Stabilize new investment money inflow = annuity of $750K/year.

As they say, “Your results may differ.”

• Exit strategy: maintain the portfolio as an “annuity” [estimated at $938K/year] or sell the loan portfolio for 2.2X. NEXT STEP?

• Email your contact information to:

• Conference call(s) • Meet each the Founders!

• Fall in love

• Nail down a Term Sheet.


Texas CAB’s, CSO’s and 3rd Party Lender FAQ’s

Texas CAB – Texas CSO- Texas 3rd Party Lender

Texas Credit Access Businesses obtain credit for a consumer from an independent third-party lender in the form of a deferred presentment transaction or a motor vehicle title loan, more commonly referred to as “payday loans” or “title loans.”

In Texas, the actual third-party lender is not licensed, rather the credit access business that serves as the broker is the licensee in this regulated industry. The credit access business charges a fee to the consumer for obtaining the third-party loan; this fee is usually calculated as a percentage of the loan amount.

Third-party lenders typically earn an initial 10% interest and often participate in consumer NSF and late fees; 12% – 14% APR’s are not uncommon.

The borrower will sign a promissory note with the lender for the actual loan and a separate credit service agreement with the credit access business. Generally, all documents are signed at the credit access business location and payments are made directly to the credit access business.

For more Texas CAB – CSO – Third Party Lender informaion: Texas CAB


Payday Loan Lender Preparing for Another Board Meeting

RIICO charges, class action lawsuits, payday loan lender annual conventions, CFPB, state AG’s… what’s a payday loan guy or gal supposed to do? Take a nap next to the boat!

Payday loans

Preparing for another challenging day while enabling average Joe’s and Jill’s to get access to small dollar loans.