PAIN and Small Dollar Lending

By | Mar 3, 2016

Pain!

I get calls every day from lenders in PAIN!

What kind of PAIN you ask?

• Fear about what the CFPB/regulators will do to us
• What our friends, family and neighbors think of us
• What new city ordinance is going to be passed against us
• Who might sue us next
• How do we collect our money

The #1 PAIN? How to take care of our existing customers and how to get more of them!

At a minimum, there are 45 MILLION+ customers out there who want to do business with us.

The LIFE TIME VALUE (LTV) of just one customer is $4,236 – $15,000+ in fees generated!

So… if you miss just ONE customer you’re talking about SERIOUS PAIN!

(Relax! I’m getting to PAIN relief)

Look, I have no clue as to what the CFPB will do – if ANYTHING. The Chairwoman of the Democratic National Committee just introduced HR4018. This changes the game in our favor BIG TIME! And CSFA, FISCA, OLA, NASFA, our lobbyists, our State associations are all working hard…

If you’re still concerned about what your friends, family and neighbors think, open a pizza store. I’m certain that too will meet with some disapproval.

City Ordinances? As I’ve been saying for years, “Embrace the Internet or Die!” Cities can’t enforce their crazy laws anyway. The State will prevail. But, be prepared…

Most importantly, let’s not forget our customers. Our CUSTOMERS support us big time! Over and over again – at hearings, meetings and CFPB rallies, they’ve expressed their desire for continued access to our products and services!

PAIN RELIEF!

ENABLE YOUR CUSTOMER TO DO BUSINESS WITH YOU!

Online & Storefront Lenders.
Don’t lose a customer because you’re CLOSED. Be available 24/7 to make loans/$$
Are you losing business to your competition because of your hours of operation?
You want to service more customers? You want to make more loans? The magic words are “SPEED” and “AVAILABILITY.”

SPEED:
Speed of customer contact is huge! If you wait five minutes to call a lead after you purchase it, chances are the customer has been contacted by someone else already.

If your customer has to wait in line while your CSR’s answer your phone, they will bolt!

How many times have you experienced this yourself? You’re in a place of business. You wait in line for your turn. The phone rings. Suddenly, the caller on the phone has literally jumped into line ahead of you. The caller is not placed on hold. YOU are! Patience is not a virtue!

AVAILABILITY:
During the past week, Team Trihouse called 132 loan companies after hours. 93% of the time, all we got was a poorly worded recorded voice!

“Hello, sorry we missed you. Our hours are Monday through Friday 10 A.M. to 6 P.M. and Saturdays 10 A.M to 2 P.M. Please leave a message and we’ll return your call. BEEP…”

As “The Donald” would say, “STUPID!” 82% of the companies we left a message with NEVER returned our call.

Lenders are spending $$ on store branches, signage, leads, TV, radio, car wraps, direct mail, bus benches, on and on while FAILING miserably at serving their customers.

OK, ENOUGH! How do we fix this?

Hire and train more CSR’s and staff them 24/7.

WHOOPS! That’s expensive, time consuming and hard to scale.

A simpler way? Try Centrinex

OK, here comes the PITCH.

But seriously, I know Centrinex works! You can stop being “STUPID.” You can be “open” 24/7 and beat the pants off your competition.

Remember your customer’s Life Time Value? $4,236 – $15,000+

Centrinex:

• Centrinex has provided outsourced call center services to the short term lending industry for over 10 years, with 5 facilities (Domestic and Near-shore), and 25+ lenders currently enjoying the advantages of having partnered with Centrinex.

• Flexible solutions from standard operating hours to after-hours coverage, shared resources and even per-minute billing are available. You can expand your hours of operation without expanding your real estate and salary expense. Ramp-up as your needs dictate.

• Centrinex will call your loan applicant immediately. The moment your loan form is submitted by your loan customer a Centrinex CSR will call them while they’re still at their computer!

• When your phone rings, a Centrinex CSR will answer in seconds.

• After hours coverage allows you to purchase lower cost leads when your competition has closed for the day.

• Loan applicant fraud is HUGE. Partner with Centrinex – a Team who already “knows the ropes” and can assist in refining your underwriting to maximize loan performance.

• Online application abandonment. Centrinex can provide “Overflow Coverage” for peak periods your in-house staff cannot support.

• 24/7 Centrinex call center support for lead sellers. Maximize your lead inventory and monetize your denied leads.

• Centrinex works with all loan management software programs.

• Multi-lingual CSR’s available

• Collections: Centrinex averaged 35%+ success on 30 day debt in 2015

• Champion-Challenger: Is your current call center performing as well as you think? Run a campaign against your internal Team to find out.

• Disaster Recovery: Maintain a small, low cost staff solution with Centrinex in event of unexpected down-time/failure.

CONTACT TEAM CENTRINEX:
Frank Cotton 678-851-8116 (Cell)
FCotton@Centrinex.com

Are you attending CFSA in The Bahamas March 7th – 10th? Look for Frank. Give him a call.

Frank Cotton: Centrinex

Frank Cotton: Centrinex

Here’s Frank’s ugly mug:

Frank Cotton
VP Sales and Marketing
fcotton@centrinex.com
678-851-8116 – cell
Skype: fcotton368
LinkedIn: fcotton368

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2 Comments so far
  1. Bill W March 9, 2016 3:09 pm

    Interesting piece. What is the profitability of a payday loan store in California? How much capital to start? Licensing?

  2. PaydayLoanGuy April 1, 2016 9:28 am

    Thank you!

    In California you need a PDL License. Easy to get. All you need to know including applications is in our “Bible” at http://www.PaydayManual.com . Profits? In California, we charge $17.66 per $100 loaned every 2 weeks. Working through all the numbers in our “Bible” at http://www.PaydayManual.com , you will ON AVERAGE gross 30% per month on your “stret money.” Thus, $100K on the street = $30K/month gross revenue. Back out for 1.5 employees, 4% bad debt, store rent… VERY PROFITABLE!

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