Real World PDL vs Bank APR Comparison

By | Apr 4, 2017

There is continued controversy regarding the Annual Percentage Rate [APR] of a payday loan – single payment product – versus bank overdraft fees.

Those who compete against payday loan, car title loan and installment lenders – banks, credit unions, pawn shops… always refer to payday loan APR’s as “outrageous!” And yet, a cursory review of this “APR Bank vs Payday Loan Comparison Chart” below, clearly refutes the validity of this claim.

The following chart is based upon an independent study performed by Dr. Dan Oglevee and Dr. Bill Reeves, finance professors at The Ohio State University. It compares the actual and annualized interest rates for a variety of short-term loans and banking and credit services.

Real World APR Comparison Chart Payday Loans vs Bank Overdraft

Real World APR Comparison Chart Payday Loans vs Bank Overdraft

Need help with starting your payday loan company? Start here: “How to Start a Payday Loan-Installment Loan Company.”

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Starting a Payday Loan -Title Loan Company

By | Mar 24, 2017

Hello Money Lender,

Insight & Wisdom in small dollar lending. Digging down below the media headlines…

We congratulate you for recognizing the profit potential of the “business of lending.”

It’s incredible how profitable and powerful a lending business can be!

Simply put, lending is the best possible business you can be in.

Why?

Your inventory is cash and credit. It’s not roses dying or fruit rotting. It’s not cars depreciating. It’s not selling your accounting or car repair service over and over again while you pray you don’t receive a bad Yelp review!

YOUR inventory is MONEY! And EVERYONE needs MONEY!

Call these loans payday loans, title loans, installment loans, line-of-credit, cash advances, FinTech…

Whether you’re focused on the store model, the Internet model, or a combination of the two, we pledge to bring you the latest news, solutions, legislative developments, vendor offerings and more.

Some of our topics in the past have included collection techniques, software, the Internet, store selection, man-loading, underwriting, identity validation, alternative payday loan methods, the CSO/CAB Credit Services Organization Texas [Ohio & Texas for example] Model, loan management software (LMS),industry conventions and much, much more.

Our latest ramblings are available here: http://www.PaydayLoanIndustryBlog.com

If you’re relatively new to the payday loan industry and are in need of solid, thorough payday loan knowledge, we recommend you consider investing in our 400+ page Payday Loan Training “Bible” available in a printed or digital Adobe Acrobat version delivered immediately into your email inbox.

We print and ship our latest version of this Manual to you in a 3-ring binder with a CD containing sample contracts, disclosure forms, APR calculation formulas & examples, laws, statutes, fee structures and more for your state or province. You may review the contents of our Payday Loan Training “Bible” here: http://www.paydayloanuniversity.com/buy-now/

If you’re leaning towards a car title lending business because the loans are less risky as a result of being “collateralized” by the borrowers car, RV, boat, motorcycle… title, consider visiting: http://www.automobilepawn.com/#buy-now

Note that our “Bible” covers both the Internet Model and the Store Model. Again, we thoroughly cover the various licensing models including state, province, offshore, tribe and Texas/Ohio CSO/CAB.

The payday loan industry is an extremely dynamic, profitable niche. We made our entry into it in late 1997. Today we operate stores and websites in addition to consulting. We are not simply three guys who write books! We are Lenders, consultants and conduits for payday loans, car title lending, installment lending and scrap gold businesses.

As a reminder, we NEVER sell or abuse your contact information!! Spam is for jerks and we are not jerks :-)

Email Jer – Jer@TrihouseConsulting.com –  with ANY questions, ideas, “brain-storming or requests for help.
You may call or text us at 702-208-6736 – Cell. (PDT)

We look forward to helping you make substantial profits in the Payday Loan Industry/Small Dollar Credit Industry.

Jer – Trihouse Consulting. Lenders, Teachers, Resources, Answers…
http://www.PaydayLoanIndustryBlog.com

Follow us for immediate updates: https://twitter.com/#!/paydayloanguy
Facebook: http://www.facebook.com/TrihouseConsulting#!/
Google+ https://plus.google.com/u/0/?tab=XX#108383895159196182820/posts

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The Unbanking of America-Professor Lisa Servon Worked in a Payday Loan Store

By | Mar 9, 2017

Why the Payday Loan Industry is Not Only Surviving But Thriving in 2017!

  • Why do real people use payday loans?
  • Why does the middle class choose check cashers rather than banks?
  • Watch Professor Lisa Servon discuss her new book [2:09 minutes in Video] “Unbanking of America.” One of the RARE academic’s who ACTUALLY LEAVES THE CLASSROOM AND WORKS BEHIND THE COUNTER in a payday loan store in California and a check cashing store in the Bronx!
start-payday-loan-business-125Payday Loan Training Bible
More Info


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.

For start-ups, hedge funds, investors, vendors, suppliers, legal counsel, media coverage, consumer advocates… anyone in need of, not only a discussion of Internet & brick-n-mortar licensing models, ACH, Internet & offline marketing, collections, software… but additionally a MACRO discussion of the AFS (Alternative Financial Services) industry.

How to start a small dollar consumer loan business. Focused on payday loans, installment loans, line-of-credit loans and CSO lending. Both Internet and brick-n-mortar models covered. Includes current State/Province license info & legislation, tribe & offshore strategies.

NOTE: Got a question? 702-208-6736 10 A.M – 5 P.M. PDT.
Support@PaydayLoanIndustry.com
auto-title-loan-125X125
Start a Car Title Loan Biz

More info


How to Start a Car Title Loan Biz

Immediate download in Adobe Acrobat or choose our printed and shipped version.

Our “Car Title Loan Training Bible” will teach you EVERYTHING you need to know to make money in the lucrative car title loan industry. We begin with an overview of the car title loan industry in the USA and continue with a thorough explanation and analysis of every aspect of starting and successfully running a profitable car title loan business.

Payday Loan, Installment Loan & Car Title Business Courses and Training Materials Available

Trihouse Consumer Loan Business Consulting – what we do

  • Offer intellectual property in the form of Manuals, Reports and Guides.
  • Consult: We offer one-on-one advice and counsel for start-ups and experienced “players.”
  • Capital: we fund experienced management and help raise capital.
  • Brainstorm: do you have an idea? Let’s explore…

Whether you’re new to the small dollar loan space, a venture capitalist or an investor attempting to get a handle on “how this small dollar loan thing works,” a seasoned veteran needing to know the latest strategies, tactics, tech developments, underwriting practices, LMS (loan management software)… or a lawyer researching licensing issues (tribe, choice-of-law, state/province or offshore), you need our “Consumer Loan Bible” described below

You can spend weeks “Googling” your way to get information or invest a couple of hundred bucks and dig into our 300+ page “Bible” immediately. We GUARANTEE you will be pleasantly surprised by the thoroughness of our work! Why do we do it? Quite frankly, our “Bible” opens doors, starts dialog and enables us to continue to prosper in the small dollar loan niche.

We have been in the small dollar consumer loan (SDC) industry offering payday loan, car title loan, and installment loans for more than 20 years. We are store operators, Internet lenders and consultants. Virtually everyone in the payday loan niche knows our CEO, Jer at Trihouse.

The consumer loan industry is “cranking!” The number of transactions are increasing substantially. Demand for consumer small dollar loan products – that is  $100 to $3500 loans by consumers – is growing 30% per year. There’s a constant barrage of new strategies, tactics, legislation, vendor solutions, software offerings and more. As a result, the various manuals and reports listed below are updated on a monthly basis.

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Payday-Installment-Title loan Store Marketing Ideas: 101

By | Feb 13, 2017

Marketing Ideas. By the guys who wrote the book on starting a payday loan, installment or title loan business.

What’s a payday, installment, title loan lender to do? How do you get more customers? Google? Facebook? Instagram? Pinterest? Blogs, Direct mail? Yellow Pages Online? Buy leads? Billboards? What REALLY works? Acheiving success in increasing your loan portfolio size is a Pain in the ASS! A SLOW, long-term process.

It’s the simple stuff that works!

For our loan stores, we do use Google PPC and Bing but VERY localized (zip codes, city, county…) because the general PDL phrases are simply too expensive and poorly convert. Also, the lead gen companies have the time/expertise to FOCUS on this.

Storefront lenders must have a website that looks great on a phone! THIS IS ABSOLUTELY NECESSARY TODAY! 70% of the traffic coming to our websites are from a customer on their smart phone. We’re not trying to get apps completed on the smart phone but it does happen occasionally. Our #1 goal is to provide a customer with store directions via Google Maps, consumer visits and inbound phone calls with a formal appointment setup and then a call back to the customer before (reminders) and after the appointment (feedback). ALWAYS BE ASKING THE POTENTIAL CUSTOMER FOR THE APPOINTMENT!

Marketing? Our stores primarily do a lot of:

  • Local direct mail
  • Door hangars
  • Car wraps
  • Answer the damn phone! And do it right!! “How did you hear about us?”  [Understaffed? After hours?Use the experts at Centrinex discussed on a previous Post.]
  • Sign spinners
  • Community outreach
  • Billboards
  • Bandit signs [Yeah sure, check your city code enforcement. Or just do it and ask for forgiveness.]
  • Referral programs with businesses that service our demographic and need to be made aware of how we can help the merchant make more money. I’m referring to lawyers, bail bondsman, mechanics, Aamco transmission, brake shops, tire and rim companies, other PDL/title loan stores that employ different loan criteria or don’t service the same loan areas we do, tax preparers… GET CREATIVE!

WE ARE FOCUSED on determining who provided the referral and to pay them for it SOON IN CASH!! This makes a HUGE difference in regularity, quality and quantity of referrals! Of course, referrals from existing customers are treated with the same diligence and rewards. (And they are probably the most valuable leads we can get!) Your loan management software can be a BIG HELP with this process! [Does YOUR LMS offer many features enabling this “tagging” or are they weak? Do you even know?  This feature is a MUST today! Want to know which software companies we like and why? Most are TERRIBLE! Click Here]

Car Title Loan Advertising IdeaI used to own some Enterprise franchises. Rain or shine, a pretty girl or handsome face showed up at body shops – one of our target markets – REGULARLY with donuts, biz cards, pens, … THIS WORKS! Over and over again. Week in and week out! You must be manic about getting out from behind your desk and visiting these merchants in the field! Develop a script to briefly describe your business, why it’s good for the merchant and for the merchant’s customer. Then MAKE SURE you’re company does not do ANYTHING to make this merchant’s life more difficult because of your PDL/Title/Installment company’s actions!

I’ve ALWAYS thought the owner of the PDL/TITLE/INSTALLMENT store should personally do this at least one day every month! The owner has to get out in the field. Visit these potential referral businesses! Ask open ended questions! How is the business owner doing? How’s business? What are her/his challenges today? How can my business help this merchant? What’s working for them to increase THEIR sales revenue? What isn’t? Can we stay in touch? Additionally, assign employees to visit these merchants as well – every week on a formal schedule. Some of your employees will embrace this. Others will rebel. Role playing BEFORE in practice sessions with your Team will help prepare them for this. With time and effort, they will get better and yield referrals. CONSISTENCY is crucial!

Conduct a formal review of these visits immediately after returning from these field visits! Develop a check list and comments section. Who did your Team meet with? Their role? What was said? Outcome? Follow-up? Measure results.

Pick up a dozen donuts and just do it! Weekly!! No excuses!!! It’s about sales!!!! Document this strategy; hopefully with your loan management software!!!!! Repeat. Rinse. Do it again.

For most of us this is HARD! What do you say to the merchant? What’s your opening line? What if the merchant is busy? “I’m here to help us both make more money without burdening you with more hassles!” And don’t overlook any of the merchant’s employees who are present. You tell a Bail Bondsman’s office personnel that there’s cash available for referrals, THEY WILL SEND YOU CUSTOMERS! We have a car tire rim installer at a local tire/rim company who sends us 3-5 new clients every month. We have a stereo installer at a car stereo joint that sends us 2 – 6 new borowers every month! Susan, a car title lender in Los Angeles is using an inflatable character in front of her store to drum-up more business. This is working for her! People even have their pictures taken with it and post them on Facebook and Instagram. [If she picks up just one new customer a month with this approach, how much $$ in revenue will she earn over the life-time of this borrower? $1000? $5,000? $10,000? More?And from this borrower’s friends and family – referrals?]

You  know none of this is rocket science! Just good old Guerilla Marketing with a manic obsession!
Jer – Trihouse 702-208-6736 Comments? Questions?  Jer@TrihouseConsulting.com Share what’s working for you!!

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Highly Experienced Short-Term Lending Executive Available – Do You Need Help?

By | Jan 23, 2017

Does your de novo or established short-term lending enterprise need a talented, experienced, executive?

 

[Name Redacted by Jer at Trihouse Consulting] has nine years of experience in the short-term financial industry. He brings extensive knowledge in multiple lending products including payday, installment and line of credit platforms. He has vast implementation experience with both the State-by-State and Tribal business models.

He has extensive relationships and intricate knowledge of the Tribal lending model. [Name Redacted by Jer at Trihouse Consulting] was the first to partner with and develop the lending platform for the [Name Redacted by Jer] Nation located in [Name Redacted by Jer at Trihouse Consulting].

He has a clear understanding of the compliance landscape needed to successfully operate in the short-term lending environment today. He has worked with one of the top compliance firms in the country, Hudson Cook LLP, to develop all collection and billing protocols that adhere to all Federal regulations and the Fair Debt Collection Practice Act. He has vast experience in all areas of call center development, from initial setup to daily management protocols and oversight.

 

[Name Redacted by Jer at Trihouse Consulting] brings all the critical business components, as well as, his business relationships including; knowledge of multiple loan management systems (LMS), specialized in lead purchasing tiers from $1 -? $100, credit risk services, banking relationships, ACH and debit card processing, underwriting and collection protocols, internal call center operations and protocols, outsourcing call center solutions with three different locations in the Philippines and Costa Rica, daily compliance protocols, QA guidelines, staff performance, profit and loss, budgeting and much more.

 

[Name Redacted by Jer at Trihouse Consulting] founded his first short term lending company in 2008. He grew that business into $10 million dollar “PRINCIPAL” portfolio, which represented hundreds of millions of dollars in revenue to the company. He oversaw the implementation of seventeen State licenses and eventually moved the company to a Tribal partnership. During his tenure, he was instrumental in developing his proprietary Loan Management System (LMS) along with multiple software applications that became the backbone of his service platform. Three years into the process, he began to license his software and also used his call center to service other financial portfolios. He’s been directly involved in starting and growing an additional six portfolios, ranging from “principal” of one million to twenty million U.S. dollars and has built three call centers from infancy to maturity.

 

The majority of micro lending companies – including so-called FinTech lenders, are crunching multiple sources of data in an attempt to analyze and predetermine default risk. In an industry with zero collateral and high interest rates, determining which customer is a better credit risk is a serious challenge. [Name Redacted by Jer at Trihouse Consulting] realized early on, there had to be a better way to determine payment risk. Through trial and error he began to test a different approach utilizing payment data from employers. Through months of testing he formulated, created software and mastered a “Patent Pending” innovation that is cutting edge. This innovation bypasses traditional credit scoring methods to determine payment risk using only the customer’s employer information. The approach of “Employer Risk Modeling” is the first loan program designed at the employer level. His company has amassed one the largest employer databases in the country connecting lenders, employers and customers. Being an innovator is one of many strong suits [Name Redacted by Jer at Trihouse Consulting] possesses.

 

During the past several years, this payment process has created over one hundred thousand checks from employers representing millions in additional revenue for portfolios.

 

Employer Risk Model

Propritary-V1

[Name Redacted by Jer at Trihouse Consulting] brings a wealth of knowledge, experience and contacts to the short-term lending industry. He has established a track record of success and understands how to build an organization one employee at a time.

 

If your organization is in need of a seriously talented executive having “in-the-trenches” operational experience in the short-term lending industry, reach out to Jer at Trihouse Consulting for an introduction today. 

[Name Redacted by Jer at Trihouse Consulting] is willing to relocate and explore all opportunities and scenarios! 

To schedule an introduction:

Call Jer at 702-208-6736 – Cell (PDT) or Jer@TrihouseConsulting.com You may request this Bio as a PDF…

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