Category: Profits

05
Jul

Mastering the Art of Subprime Lending

The Subprime Lending Opportunity

The financial world is full of opportunities for savvy entrepreneurs willing to navigate the nuances of complex sectors.

 

One such sector that holds immense potential but demands intricate understanding is subprime lending.

 

Contrary to conventional wisdom, the subprime market is a lucrative venture if appropriately approached.

 

Today, we unravel the essentials of mastering the art of subprime lending.

UNDERSTANDING SUBPRIME LENDING

Subprime lending, often seen as high risk, involves providing loans to individuals with low credit scores who may not qualify for conventional loans.

 

Although these loans carry an increased risk of default, lenders are compensated through higher interest rates and fees.

 

Mastering subprime lending requires a delicate balance between risk management and customer service, thus offering financial solutions to those often overlooked by traditional institutions.

 

SETTING UP A SUBPRIME LENDING BUSINESS

Launching a subprime lending business requires rigorous planning and diligent execution.

 

First and foremost, it’s vital to understand and comply with all regulatory aspects, which can vary significantly across different states.

 

A comprehensive business plan outlining your funding sources, target customer demographics, operational process, and revenue model can pave the way for a successful launch.

RISK MANAGEMENT – THE HEART OF SUBPRIME LENDING

The key to succeeding in subprime lending is effective risk management.

 

This requires robust credit assessment procedures, an efficient collection process, and an appropriate loan loss provision strategy.

 

Incorporating modern credit scoring methods that leverage machine learning can provide a more nuanced understanding of your borrowers’ credit risk.

 

Risk management isn’t a one-time process but an ongoing cycle that needs consistent updating and refining.

OFFERING THE RIGHT PRODUCTS

ou must be selective in choosing the loan products that will generate a reasonable return without exposing your business to excessive risk.

 

Short-term loans like payday, installment, and title loans are popular in the subprime market due to their high-interest rates and fees.

 

However, these also come with elevated default risk and should be carefully managed.

TECHNOLOGY AS AN ENABLER

Harnessing technology can provide a competitive edge to your business.

 

Leveraging fintech solutions for loan management can streamline your operations and improve customer experience.

 

Advanced analytics can help you make informed decisions about creditworthiness, loan pricing, and collections strategy.

 

Investing in technology will pay off in operational efficiencies and improved risk management.

CUSTOMER SERVICE – MORE THAN JUST LENDING

In the subprime market, you serve a demographic that often struggles with financial emergencies.

 

Offering empathetic and understanding customer service can differentiate you from competitors and foster customer loyalty.

 

A dedicated customer service team trained to handle customer concerns professionally and compassionately can significantly enhance your brand’s reputation.

PROFITABILITY AND GROWTH

The profit potential of a subprime lending business can be substantial, but it’s important to remember that it’s not just about immediate profits.

 

Long-term growth and sustainability should be your primary objectives.

 

Regularly reviewing your Profit & Loss statement and adjusting your strategy can help ensure your business remains profitable.

 

Diversifying your loan portfolio and cautiously expanding your company can contribute to sustained growth.

THE SOCIAL IMPACT

hile profitability is crucial, pay attention to the social impact of your business.

 

By providing loans to people who wouldn’t ordinarily qualify for traditional financing, you’re offering a lifeline to people during challenging times.

 

By operating responsibly, your business can play a crucial role in financial inclusion and community development.

 

Starting a subprime lending business is not for the faint-hearted. It requires a deep understanding of the financial market, diligent risk management, and a solid commitment to customer service.

 

However, those willing to master the art of subprime lending will find it a rewarding venture.

READY TO LEARN MORE?

READY TO TAKE ACTION?

ALLOW US TO SHOW YOU THE PATH...

How to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!

If you’re worn out spending hour upon hour searching Google for consumer loan business strategies, know-how, software, licensing, consumer credit reporting, sample contracts, collection tactics, profitability, how much start-up capital you need, anticipated default metrics, and on and on and on… Our “Bible” delivers ALL THESE ANSWERS AND MORE!

How to loan money to consumers! Payday loans, car title loans, installment loans, line-of-credit loans… via the Internet and storefront models.

  • Answers to:
  • How profitable are they?
  • How much do these businesses earn?
  • Do you need a license?
  • We update our “Bible” every 3 months.
How to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!
100% Money Back Guarantee: How to Start a Consumer Loan Business

Course 1: How To Start a Consumer Loan Business: Our 500+ Page Manual

  • Chapters:
  • Profits: Consumers pay $10 – $35 per $100 Borrowed
  • How to launch a consumer lending business
  • Payday Loans
  • Small Dollar Loans
  • Installment Loans
  • Car Title Loans
    Personal Loans
  • Signature Loans
  • Non-Secured Personal Loans
  • StoreFront Lending
  • Internet lending
  • Licensing? State/Province
  • What loan management software to use?
  • Capital required?
  • Profitability?
  • Collections? How to Collect Your $$
  • Borrower Underwriting? 3rd Party Credit Reporting agencies for the Sub-Prime
  • Store & Internet Lending tactics & strategies
  • Sample contracts, License apps…
  • Tribe Model: How to Partner with a Native American Indian Tribe
  • How to Deliver the $$ to Your Borrower [ACH, Debit, Cash, Checks…]
  • Texas & Ohio CSO/CAB model
  • Marketing, Branding, Advertising: How to Put Your $$ to Work
  • Leads: Buy $2 leads or $200 Leads?
  • Web Sites: Why You Need Them. How to Get One Built Inexpensively. Mobile-Friendly…
  • Site Selection: Where to Put Your Loan Store
  • Default Rates: How Many Borrowers Will Fail to Pay You
  • Email Strategies: How to Build Your Own List
    No More Faxing of Documents
  • How do You Raise $$: Cost of Capital Today
  • PDF Immediate Download
    100% Refund Policy
  • Doubts? Here’s a Link to our Founder’s LinkedIn Profile
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14
Jul

9 Reasons: Biz of Lending to the Masses Continues to Scale Big Time

How to Start a Consumer Loan Business

Hello Lenders, Vendors, Entrepreneurs, Regulators & all interested parties in “The Business of Lending to the Masses!”


Government subsidies, additional unemployment payments, and rent moratoriums are coming to an end. Vaccine & Covid fears are abating. Jobs are plentiful. That means our borrower applicants have the ability to pay.

Our portfolios and those of my clients and peers continue to pick up steam.
Demand for cash by the “lower moderate-income, unbanked, underbanked, thin-credit, subprime… whatever you choose to call this demographic – “THE MASSES” – continues to increase dramatically.


The malls, the outlets, the designer stores, auto sales – especially used cars, consumer goods of ALL kinds are overwhelmed with consumers exhibiting pent-up demand. I’ve personally visited Texas, Florida, Mexico, Tennessee, Washington, Oregon… By the 4th quarter – OUR Quarter – all of us will be scrambling for capital to serve this extraordinary demand for our financial products and services. [Have capital? Need capital? Reach out to me!]


Per a mentor of mine, Anthony [Pomp] Pompliano – Link below]:

  • “The lack of financial education should be a national emergency in the United States. Only about 50% of states require high schools to teach students personal finance and there are many statistics that point out just how financially illiterate our society is currently:
  • More than 53% of adults say thinking about their financial situation makes them anxious.
  • 44% of adults say discussing their finances is stressful.
  • About 66% of American families don’t have savings that are equivalent to 6 weeks of expenses.
  • 78% of adults live paycheck-to-paycheck.
  • 80% of young people (people under the age of 35 years old) couldn’t answer majority of financial literacy questions accurately.
  • 54% of millennials are concerned about their student loan debt… there is currently over $1.5 trillion in student loan debt.
  • Less than 20% of adults feel confident in their savings habits.

These are just some of the statistics that highlight how bad the problem has become. There are plenty more.

Here is the craziest part in my opinion — most people believe they will never be able to build a life of wealth because they don’t inherit anything and they don’t have a large salary.


While counterintuitive, here is what the data says:

  • Approximately 80% of millionaires inherited $0
  • 33% of millionaires never made $100,000 in a single year

The truth is that you can build a life of wealth by simply being educated and having a disciplined approach. It is easy to learn, but obviously difficult to execute.

Anthony Pompliano has had a HUGE influence on my life! I’m a paid subscriber; for me, he’s worth every dime.

He and his Team offer substantial free information as well. I STRONGLY SUGGEST YOU follow him! Here is an announcement I received from him this a.m.: “It has become more apparent over the years that our school systems are not going to solve this financial education problem. Rather than waste time complaining about the lack of change, my brothers and I have decided to do something about it.”


[PS: From Jer. “I am not being paid by Anthony for this “plug.” I simply believe Anthony’s info – even the free stuff – is highly relevant for our niche, “the business of lending to the masses,” as well as the crypto industry, and extremely relevant for ALL freedom-seeking people!”]


From Team POMP: “Today we are launching The Best Business Show, which we hope will become the most entertaining way for people to learn about business, finance, and investing. Simply, it is the business show that we wish we had when we were learning.

“The idea here is that we will live stream for 2 hours every weekday from 11am to 1p EST. We’ll explain what is happening in business and investing, why it is happening, how it impacts the average person, and explain various timeless investing principles.”

“We aren’t journalists. We will leave that important job to the real professionals. We are simply three guys who educated ourselves over the years and have been able to build a nice life through those acquired skills. Now we’re going to share that information with young people by bringing it to them on the platforms that they are already on.”

“The internet is powerful. We don’t need a cable news network and we don’t need to ask permission from anyone. With just an internet connection, we can create what we believe will become the largest business show in the world. It won’t be easy. It will take a lot of hard work. But it is the single most impactful thing we can think to do in an effort to make an impact on this pervasive problem.”

“If you’re interested in checking it out, you can subscribe to the POMP YouTube channel”


PS: While you’re at it, grab the latest version of our Course, “How to Lend Money to the Masses Profitably” Version 75 here: https://theBusinessOfLending.com


Meanwhile, prepare for the wild ride ahead! Finally, remember! Our business is ALL about the phone. Your loan company must be capable of acquiring, underwriting, processing, funding, collecting… from the Masses who must have access to fast, no-hassle cash!


Again, for perspective, read/listen to “Debt: The First 5000 Years!”

No go make some serious MONEY and be of SERVICE to whom YOU CHOOSE! Not the government.

Jer – 702-208-6736 Cell
Jer@theBusinessOfLending.com

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02
Oct

Payday Loan Industry Profits: Pre Corona or Post Corona

How profitable is a payday loan business?

It depends! (You’re not surprised, are you  🙂

  • You’re funding payday loan customers online?
  • You’re using the storefront lending model?
  • A blended payday loan model? Both store[s] & the Internet?
  • You’re using a State licensing model? If so, your State regulatory authority – typically the Department of Financial Institutions – will determine what fees you can legally charge.
  • You’re using the tribal model? You can create one loan product and offer it in any State you choose. [Get legal advice or reach out to us to explore. Tribal Lending]
  • Your underwriting vendor
  • Your payment processing vendor?
  • Your text messaging provider.
  • Your LMS [Loan Management Software] provider
  • And dozens of other expenses. Just like any other business.

Here are a few examples of the legal payday loan rates and APR’s for a few states:

How to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!

Click the image to Start or Improve a Consumer Loan Business: Storefront or Internet anywhere!

California: A payday loan costs approximately $17.65 per $100 borrowed. For example, a $100 loan due in 14 days would have a total repayment amount of $117.65 and has an APR (Annual Percentage Rate) of 460.16%.* Moneytree, Inc. is licensed by the Department of Business Oversight pursuant to the California Deferred Deposit Transaction Law to make consumer loans.

Colorado: The number of payments will vary based on the loan amount, the number of payments, and the length of the loan. Using a $500 loan with a 10% acquisition charge and a 98-day loan term as an example: A $500 loan would cost $595 which includes finance charges of $95, consisting of the acquisition charge and three installment account handling charges, and is based upon you agreeing to make seven payments of $85 due every two weeks, with an APR (Annual Percentage Rate) of 118.25%.*

Idaho: A payday loan costs $16.50 per $100 borrowed. For example, a $100 loan due in 14 days would have a total repayment of $116.50 and has an APR (Annual Percentage Rate) of 430.18%.*

Nevada: A payday loan costs $16.50 per $100 borrowed. For example, a $100 loan due in 14 days would have a total repayment of $116.50 and has an APR (Annual Percentage Rate) of 430.18%.*

Washington: A payday loan costs $15 per $100 borrowed up to $500 and $10 per $100 on the amount over $500. For example, a $100 loan due in 14 days would have a total repayment amount of $115 and has an APR (Annual Percentage Rate) of 391.07%.*

Obligatory Payday Loan Customer Notices:
Payday Loans, High-Interest Loans, and Title Loans should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

*The Annual Percentage Rate (“APR”) is the cost of your loan expressed as a yearly rate. The actual APR for your loan may be higher or lower, depending on the actual amount you borrow and your actual repayment schedule.

PAYDAY LOAN PROFITS ROUGH RULE OF THUMB: You’ll gross 20% to 30% on your loan portfolio monthly. Some operators do better! Some do worse! Like I say, It depends!

Texas Payday Loans. [I’m going to keep this REALLY SIMPLE. I could write a 500+ page “bible” about this topic and the real-world metrics! Oh, wait! I did! 🙂 So you old school loan sharks reading this DON’T FREAK OUT on me!]

Let’s use 25% gross. If you reinvest all your profits back into your business and achieve an average-sized portfolio in a typical geographic area in a favorable state like Texas, you might gross $62,500 on a $250K portfolio. [“Street Money.”] Your $250, 000 payday loan portfolio would likely consist of  416 borrowers averaging $600 loans. Typically 60% to as much as 80%+ of your borrowers will simply pay their fee [in Texas that would be $20.00 X 6 = $120] and still owe you the original payday loan of $600. And of course, those who do pay their loan off in full will return again and again and again. It’s simply human nature. Since the beginning of time!

NOTE: For perspective on this theme, read “Debt: The First 5000 Years” and/or “The Ascent of Money.” [Full disclosure: Amazon links.]

So, it’s easy to understand how a payday loan operator can grow $50K cash “for the street” into a $250K portfolio spinning off $$60K+ per month gross. Two $11/hour employees can EASILY run this show IF you follow the instructions in our “bible” and implement our strategies while working with the vendors and 3rd party providers we introduce you to.

THIS AIN’T GONNA BE EZ! You’ve got to compete against some savvy Wall Street, VC’s, Fintech,,, hard money, smart money folks to compete in this money lending industry! Luckily for entrepreneurs driven to participate, this digital revolution has enabled small-time operators and investors [reach out to me] to participate if they’re willing to work, listen, and learn.

Ready to begin?

Tired of investing hours “Googling” your path to learning how to launch a consumer loan business online or via the storefront model?  Did you know a Lender can operate a “Consumer Loan Financial Service Center” offering payday loans, car title loans, installment loans, line-of-credit loans… from ANYWHERE? You can be in rural Idaho or downtown Miami and own and operate a legal consumer loan business in California, Texas, Florida… pick your poison!

Corona? Not relevant! B2C loan companies can EASILY acquire, underwrite, process, fund, and collect via a smartphone. Corona simply accelerated the movement to the digital delivery of EVERYTHING. Especially MONEY! And toilet paper.

“The Business of Lending to the Masses” will not abate. It’s in our DNA!

Ready to be a Loan Shark?  CLICK THIS LINK TO BEGIN

How to Start a Payday Loan Company

How to Start a Payday Loan Company

 

 

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28
Mar

How to Open a Loan Business-Why Buy Instead of Start #17

Why You Should BUY, Rather Than START, a Consumer Loan Business

Fact 1: Since the beginning of human existence, average Joe’s have been bartering, borrowing, stealing, begging, and trading time… for MONEY/STUFF.

Fact 2: We have been, and always will be, a society of Debtors and Creditors. This sucks but it’s a fact. [For a great listen while you’re getting in your daily exercise, get the audio version of David Graeber’s, “Debt: The First 5000 Years.” It’s a fascinating book about the impact of debt on history.]

Storefront, Internet, kiosks, blended… Money Lending can be VERY PROFITABLE.

So… why buy rather than start?

Startups fail. Almost always.

10,000+ “Baby Boomers” are turning 65 EVERY DAY! Many Boomers made their money by lending money. Boomers kids & grandkids do not want to be in “the business of lending money to the masses.” Frankly, the family members of Lenders are OFTEN embarrassed by this business. Right or wrong, this theme is prevalent in our industry.

The Boomer generation owns more businesses than any other generation in HISTORY!

Boomers need to sell. I know this because I receive calls and emails every week from them.

Existing consumer loan stores and internet companies already have the infrastructure in place. They’ve built out their store, maybe they have a website – most of them look like garbage and do not generate loan transactions, they have experienced employees in place, loan management software, relationships with the sub-prime credit reporting agencies and payment processors that enable instant bank verification and same-day funding… In other words, they are LENDING TODAY! You don’t have to waste 90-120 days to put your money to work! HUGE!!

Consumer loan companies already have a database of existing borrowers. This too is HUGE! You really think you can open up a brand new location or launch a website and immediately take market share? You had better have the skills in place already! You will buy leads!

Consumer loan businesses already have historical financials. Examine the cash flow. Break down the numbers. Your 1st look will mimic an IRS tax return. Your goal is to determine the “Seller’s Discretionary Earnings.”

There are not a lot of buyers for these businesses.

YES, you can make a “ton” of MONEY.

Yes, in 33+ states you can charge as much as $30 per $100 loaned. A few states have zero prescribed maximum fees; like Texas.

Tribe lenders and their servicers can lend anywhere they choose. [But why push the envelope?]

Your inventory is moola, cash, $$$$, MONEY! You’re not investing in vegetables, tires, senior care facilities, selling real estate like millions of other agents, making donuts and coffee at the crack of dawn, knocking out burgers, running a 24 hour 7-Eleven, dealing with gym memberships, fixing cell phones or computers, a “Merry Maids” cleaning service… YOU GET THE PICTURE!

Other than the business of lending money, what other industry offers you the potential of earning a 100%+ ROI?

Perceived “moat” or “Barrier to entry.” Looking from the “Outside In,” the business of lending appears to be an overwhelming chasm of licensing, bonds, regulations, bad press… GOOD! Let everyone else start a yogurt shop! Look! Total knuckleheads have applied for and been approved for a state license to loan money. Peter Thiel [PayPal Cofounder] wrote an excellent book called “Zero to One.” He focuses on “economies of scale” and advises, “First, dominate a niche market; second, scale up.” I have a client who focuses on Haitians in Florida and is “killing it!” Another client specializes in lending to Koreans in Los Angeles. Do you know that “baby boomers” make up 37% of the US demand for short-term loans? “You don’t want to be the first mover. It’s better to be the last mover  – that is, to make the last great development in a specific market and enjoy years… decades of profits.” Launch, Focus, Dominate your Niche and then expand into related, broader markets. Who doesn’t need MONEY?

You can bring your existing talent, knowledge & strengths to a “tired” loan company, replace its long-time owner, and create extraordinary value.

MANY existing owners are simply tired of being beaten up by the media, regulators, competitors…

The majority of the consumer loan businesses for sale today were launched years ago. A fresh mindset injecting new energy and enthusiasm is OFTEN ALL that is needed to 5X the marketable value of the acquired loan business!

Done right, the cash flow of the business can service the debt carried by the seller. They do want to sell their business after all!

Don’t focus on stupid valuation formulas postulated by generalists; 2X or 4X or whatever EBITDA for example. These are lazy, cop-out valuations! Hint: think “seller’s discretionary income [SDE].” Simply put, SDE is how much total cash flow the seller has been enjoying. [Don’t take the P & L at face value. The business is paying for the Mercedes, the kids phones… A motivated seller may exit at 1X SDE. You grow it 10%/year for 5 years? A 5X+ SDE is achievable! Add your inventory – which is $$$, CASH, MONEY… not rotting bananas, remember! You’ve just built a tremendous asset for yourself. [Shameless Plug. Grab a copy of: “A Guide to Consumer Loan Company Valuations.” [Scroll down to the 9th item.]  

By employing today’s technology, you can operate a loan business from ANYWHERE.

Skip the startup B.S!

Why start from scratch?

Why duplicate?

Buy, grow & innovate. Acquire. Grow revenue. Increase profits. Build an asset.

Grow your business 10% every year for 7 years; it will double in size! Your cash flow increases. The value of your asset increases. You build wealth.

Remember Fact 2: We live in a world of Debtors and Creditors. This sucks but it’s a fact. Money Lenders will always be with us. Be a Money Lender NOT a service provider, a vegetable purveyor, a burger franchisee, a _____fill in the blank!

Are you a BUYER? Are you a SELLER? Have an IDEA, a TOOL or a SERVICE for Lenders? Talk to me… Jer@PaydayLoanIndustryBlog.com

YOU control your Life. YOU control your future. Follow the MONEY! Be the MONEY!!

I’m inundated! Tell me about you, your goal and your resources. I’ll connect you! I know of opportunities TODAY in PA, CA, TX, TN, AZ, VA, IL, Internet… Tell me about you! I can help. PS: Skip the “Google” searching. You will not discover great “deal flow” on BizBuySell.com. This is about relationships!  If the deal is on an Internet Biz listing, it’s junk. YOU NEED TO GET UPSTREAM!

Want to learn more? Have an idea? Want to share…” Reach out to me via my online form.

Definitions: In this discussion, Consumer Loans mean:

  • Payday loans
  • Installment loans
  • Car title loans
  • Cash advances
  • Personal loans
  • Essentially, loans made to consumers that do not require collateral; other than a car title loan
  • We can throw check cashing businesses in this bunch as well.
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06
Sep

Elephant in the Room: Consumers Use Payday Loan Products to Avoid NSF Bank Fees!

Banks and Credit Unions Force Consumers to Use Payday Loan Products!

The debate so-called “consumer advocates” [not really advocates at all; more anti-business and anti-capitalism] and payday loan advocates get into is stupid! Particularly since these anti-free market folks are peering into our financial products industry from the sidelines.

Do YOU really think banks and credit unions give a crap about their sub-prime customers? Do YOU comprehend that the majority of bank and credit union profits are generated by NSF and other mickey mouse fees they pile on consumers? Do you know who REALLY FUNDS anti-small dollar loan alternative loan products in an effort to eliminate their competition? Do you know that Google funded a payday loan company and then SLAMMED the door to payday loan product advertising on Google? The same Google whose mantra is, “Do No Wrong!”

Other than Professor Lisa Servon, who had the juevos to actually work behind the counter of a RiteCheck in the South Bronx and a payday loan lender in Oakland, California [The Unbanking of America: How the New Class Survives], these people have no clue about the financial needs and measured choices our payday loan, installment loan, and car title loan borrower must make every day.

The misunderstanding about our  loan  fees is a result of the lack of knowledge about WHY payday loan borrowers CHOOSE our payday loan, car title loan and installment loan products to solve daily financial challenges. Our alternative loan products exist simply because of bank and credit union non-sufficient funds [NSF] Fees.

Nobody “gets” the “business of lending money to the masses” with more thought and empathy than those of us who are on the firing lines, talking and counseling our customers every hour, every day!

Want to see the numbers?

Lets examine the APR formula from a payday lending perspective:

APR = (charge/term) * 365

This APR formula breaks down the APR component to a daily figure and then multiplies that calculation to the annual percentage rate [APR]. This isn’t an amortization formula. That is for our installment loan products.

Principle: $100
Interest: $20 dollars per hundred
Term: bi weekly

APR = (20/14) * 356 = 521%

We all know these are relatively static numbers in our industry. The majority of  states have regulated payday loan fees to approximately $15  per $100 loaned to consumers. Of course, there are exceptions; Texas is but one example.

So…

Let’s examine a typical NSF/overdraft bank/credit union scenario.

After my 20+ years working with payday loan customers, I’ve learned that the MAJORITY of our customers seek a payday loan product in order to avoid overdraft charges. Because overdraft charges tend to be charged on a per transaction basis, here is an example of what a typical customer would experience when they overdraft $100 dollars from their bank.

Check Amount      Bank/Credit Union NSF Charge         Balance
$20                                   $35                                                -$55
$40                                   $35                                                -$130
$30                                   $35                                                -$195
$10                                    $35                                                -$240

Totals:
Overdraft Amount: $100
Bank/Credit Union NSF/Overdraft Charges: $140
Balance: -$240

This is a REAL example. We make payday loans, installment loans and car title loans for customers who overdraft 5 – 10 times on a single $100 balance. Customers come to payday lenders because they easily determine that they are actually SAVING money by employing our alternative loan products to solve their financial challenges.

Put yourself in our borrower’s shoes.

How much would you prefer to pay in fees to borrow $100.00? $140 from your bank? Or $15 to $25 [depends on your state] from us; your friendly small dollar loan provider who is available 6 days per week at a minimum and has store hours enabling you to get off work and visit our store at a time that is convenient for YOU, the borrower.

Banks and credit unions get their money back in LESS than 2 weeks. After all, the borrower’s bank is at “the front of the line” to the borrower’s checking account. The bank takes their money FIRST! Zero risk!! A lot of banks charge a daily fee if your bank account is in the negative. With all that to think about, let’s be CONSERVATIVE and say the bank gets their money back on the next paycheck. And lets forget about that daily negative balance charge.

Here is what the APR formula for a bank “NSF loan”would look like:

Bank/Credit Union APR = (140/14) * 356 = 3650%

3650%!! Are you kidding me?

And, this ignores additional HEAVY financial factors – the shorter term, the daily negative balance charges… If we calculate those figures into the bank’s APR, we’d be looking at a 10,000% APR!

Ladies and gentlemen, regulators and politicians, it’s time to understand that there is absolutely NO DIFFERENCE between the interest we charge and the “overdraft charge” that banks pocket EXCEPT FOR THE FACT THAT PAYDAY LOAN PRODUCTS ARE CHEAPER AND SMARTER for the CONSUMER! At the end of the day, both scenarios are exactly the same: interest on money loaned.

The only difference is the price: 521% APR for a payday loan versus 3650% APR for the bank.

Don’t believe my numbers because you think I’m biased?Overdraft fees have reached their highest level since 2009, which was at the end of the Great Recession. Consumers paid $34.3 billion in overdraft fees during 2017 compared to $33.3 billion in 2016, The New York Post reported.Mar 29, 2018.”

How to Start a Consumer Loan Business: Installment lending, car title loan lending, payday loan lending, personal loan business

Click This Image for Some Light Reading 🙂 Over Your Weekend!

Banks boast that their interest rates are around 8% APR, but do our customers have access to them? Show me a bank that will hand out a $300 loan at 8% APR to someone who has a credit score in the 400 – 500’s and I’ll place you on the lap of Santa Claus. It won’t happen because it’s simply not profitable for banks. The reality is that banks boast about their 8% APR loan which are made ONLY available to the rich (with perfect credit scores), while secretly charging the middle to lower class customers more than 2000% on small loans.

The fact is, the majority of society is in the middle class to lower class income bracket today. They need 3 “gig jobs” to live with a roommate, deal with their student debt, make their car lease and EAT. Banks don’t make nearly as much by lending to the rich; APRs are too low and the probability of them paying back the bank is nearly guaranteed.

Banks make the MAJORITY of their money on NSF/Overdraft charges. In a society which lives mostly from paycheck to paycheck it is almost a sure thing that everyone will overdraft their bank accounts once or twice a year at minimum. But that is a whole other subject.

Want to learn how to help consumers avoid these crazy high bank and credit card fees?

Want to learn “how to lend money to the masses?

Invest in our quarterly updated “bible” of lending, “How to Lend Money to the Masses Course.” We reveal everything you need to know. Installment loans, car title loans, payday loans, licensing, contracts, location, software, how to begin, collections, underwriting, phone scripts… Here’s a link to our “Table of Contents.” Instant download in Adobe Acrobat PDF.

How to Start a Consumer Loan Business: Installment lending, car title loan lending, payday loan lending, personal loan business

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If you're worn out spending hour upon hour searching Google for consumer loan business strategies, know-how, software, licensing, consumer credit reporting, sample contracts, collection tactics, profitability, how much start-up capital you need, anticipated default metrics, and on and on and on... Our "Bible" delivers ALL THESE ANSWERS AND MORE!

How to loan money to consumers! Payday loans, car title loans, installment loans, line-of-credit loans... via the Internet and storefront models.

Answers to:
How profitable are they? How much do these businesses earn?
Do you need a license?
We update our "Bible" every 3 months.
$297.00 PDF Download
100% Guaranteed Satisfaction





$297 Immediate Email PDF




How to start a loan business, payday loans, title loans
Course 1: How To Start a Consumer Loan Business

Our 500+ Page Manual $297.00

Topics covered:
Profits: Consumers pay $10 - $35 per $100 Borrowed
How to launch a consumer lending business
Payday Loans
Small Dollar Loans
Installment Loans
Car Title Loans
Personal Loans
Signature Loans
Non-Secured Personal Loans
StoreFront Lending
Internet lending
Licensing? State/Province
What loan management software to use?
Capital required?
Profitability?
Collections? How to Collect Your $$
Borrower Underwriting? 3rd Party Credit Reporting Agencies for the Sub-Prime
Store & Internet Lending tactics & strategies
Sample contracts, License apps...
Tribe Model: How to Partner with a Native American Indian Tribe
How to Deliver the $$ to Your Borrower [ACH, Debit, Cash, Checks...]
Texas CSO/CAB model
Marketing, Branding, Advertising: How to Put Your $$ to Work
Leads: Buy $2 leads or $200 Leads?
Web Sites: Why You Need Them. How to Get One Built Inexpensively. Mobile-Friendly...
Site Selection: Where to Put Your Loan Store
Default Rates: How Many Borrowers Will Fail to Pay You
Email Strategies: How to Build Your Own List
No More Faxing...
How do You Raise $$: Cost of Capital Today
$297.00 PDF Immediate Download
100% Refund Policy

Doubts? Here's a Link to our Founder's LinkedIn Profile.





$297 Immediate Email PDF






Click this link Course #1 for a complete Table of Contents.


How to Operate a Texas CAB?CSO Loan Biz

$197.00 How to Operate a Texas CAB/CSO Consumer Loan Biz







CAB/CSO Texas CAB Services Organization Report (Texas)

For Lenders offering car title loans, payday loans, installment loans, line-of-credit loans... B2C consumer loans.
An analysis of the CAB/CSO Credit Services Organization Model as it applies to Texas. An alternative to the "Regulated Lender Model.

What is a Texas CAB/CSO Credit Services Organization?
In essence, a CAB/CSO or Credit Services Organization is defined by the Texas Credit Services Organization Act (Section 393 of the Texas Finance Code) as an entity or person that provides one of the following services:

* Improving a consumer's credit history or rating.
* Obtaining an extension of consumer credit for the consumer.
* Providing advice or assistance to a consumer regarding the previous two services.

How does the CAB/CSO Credit Services Organization work with consumer loans?
The CAB/CSO Credit Services Organization operates as a broker, The Texas Credit Services Organization Act (CSOA) allows the lender to register as a CAB/CSO and act as a loan broker. Thus, the CAB/CSO can make loans via "3rd Party Lenders" that are UNREGISTERED and UNLICENSED. The CAB/CSO Credit Services Organization acts as a broker for the consumer in need of funds by issuing a "letter-of-credit" on behalf of the consumer to a "3rd Party Lender." This 3rd Party Lender funds the "loan" brokered by the CSO.

How does the Texas CSO Credit Services Organization collect its 3 fees:
A referral fee for referring the consumer to the lender that actually funds the "loan." This is not stipulated by any law but is currently $20 to $30 per $100.
An application fee for filling out the CSO documents; typically $10 per $100.
The interest on the "loan;" Texas state law caps this at 10%/year for the unlicensed 3rd-Party Lender.
Your Total investment? $197.00. Delivered as a PDF immediately to your email inbox.
We provide everything you need to acquire your CAB/CSO License from the Texas OCCC and your complete comprehension of how to launch an online/storefront Texas Consumer Lending Business.








Attend a payday loan bootcamp training Payday Loan, Title Loan, Boot Camp, Installment... Boot Camp -LIVE

Boot camps are run in our South Texas “live” Loan Center
We offer small-dollar loan training
You and one employee/partner may attend
Our "Bible: How to Loan Money to the Masses" is included
These are “one-on-one” intensive workshops customized for your situation and challenges
We cover both the store model and the Internet Model
The fee is $5000 total per company (Including our Bible)
We schedule our Boot Camps in our Texas location to accommodate your Team

Seminar/Boot Camp
2-Days in a "live" Loan Center in South Texas. Includes our "How to Loan Money to the Masses Bible" emailed immediately in Adobe Acrobat.
Schedule a Call with our Founder.

You want to learn how to make money by lending money? You’re fed up spending hours and days with “google search” in an attempt to figure out if small-dollar lending, payday loans, car title lending, and installment loans are profitable?

Talk to an expert!

1] Request a Call; as little as $75.00 for a 15-minute call. Extend the call if you like.
2] Via Clarity.fm, you will be pre-charged for the estimated length of the call, based on our rate of $200/hr.
3] Connect directly with our Founders on the day and at the time you select.
4] Ask ANY question regarding the small-dollar loan industry
4] At the appointed day/time, call the conference line we provide. After our call, the charge will be adjusted to reflect the actual length of our call.

Jer and the Team at Trihouse Consulting have taught thousands of entrepreneurs the correct way to identify, evaluate, negotiate, perform due diligence on, finance, turn-around and operate payday loan, car title loan, and installment loan businesses; the business of making money by lending money. Some people think we’re nuts for doing this, but the truth is that we’re far from crazy. DOING & Teaching opens doors for us that pales in comparison to any other channel.

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