Category: Trends & Tactics


How to Launch a Payday Loan Business

Starting a payday loan business?

A car title loan company?

Prefer to call them installment loans or line-of-credit loans?

You’re a money lender! But are you a Loan Shark?

Or, you’re thinking about the business of lending.

Here’s a real world example of a title loan we made. All data is real except the customer’s name.

Customer Name: Jose Jones
Amount of Loan Principal: $1500.00
Collateral: 2005 Toyota Camry XLE Sedan with 121,000 miles. “Good Condition”
Our Fee: 12%/month

Jose has paid us a total of $3420 in fees. [$180/month for 19 months.]

How much does Jose owe us today? $1500.

Now remember, Jose’s credit card was maxed.

Jose had no friends or family to loan him the money. [Actually, I think he was too embarrassed to ask…]

No bank or credit union would loan him $1500 in under 30 minutes…

We funded his loan and let him continue to drive his car.

Jose COULD have added a little every month to pay down the loan principal. He has not.

Are we loan sharks?

Are we financial counselors?

Do we get money to loan from the FED’s at <3% like the banks?

Should we simply tell him enough! Thank you. Here is your title?

What about the other 21.7% of our customers we have to chase?

Should we continue to earn a good profit and give a portion to our local charity?

Do you think we should put Jose on a payment plan?

Our competition charges as much as 30%/month on the loan principal.

Do we just keep Jose on the hook? We all know eventually Jose’s Toyota will break down and then what?

As several of my readers pointed out:

  • Banks do not give their customers a break!
  • Credit Unions show no mercy
  • Credit card companies destroy ALL who fail to live up to their agreement
  • NSF Fees can crush a consumer. 1800%+ APR’s!!!!!!!!!



Our customers have jobs. Our customers… READ MORE BELOW

have bank accounts. Our customers have the ability to pay back their loan! Our customer is the Walmart customer; the blue-collar, white-collar employee making $18,000 to $64,000 a year!

And MOST IMPORTANTLY what we all need to understand is that this segment is GROWING!

There is a world-wide shift occurring in the advanced economies!

The total number of employees in the service sector and other lower paying jobs is expanding.

Higher skilled, higher paying jobs are going off-shore to developing countries where wages are lower. This shift is so pronounced there is even a name for this market segment; it’s ALICE (Asset Limited Income Constrained Employed).

These are our people! Embrace them!!

A moneylender who charges extremely high rates of interest, typically under illegal conditions. Loan Shark: Urban Dictionary Definition
Jer Trihouse 702-208-6736 Cell
Knowledge Store: Tribe & State-by-State Licensing Models


Tip #6: How to Sell Your Payday Loan Business

10,000 “Baby Boomers” turn 65 years old every single day!

I know, based on the calls and emails I receive every day, several of these “Boomers” own payday, car title and installment loan businesses they want to sell.

Why sell? Retirement, divorce, tired, start another business, personal need for cash, partnership problems, key employee quit, want to move to Texas/Florida/Arizona…

And what’s the #1 problem I see when I evaluate one of these “consumer loan businesses?”

The seller has failed to prepare their consumer lending business to be sold! You can’t just wake up one morning and decide to sell your payday loan business, your car title loan store, your consumer lending company…

So, what to do? A concrete step a seller can do today? [NOTE: This Tip is an excerpt from our “How to Loan Money to the Masses Profitably – The Bible.”]

  • Make the decision today that you want/need to prepare your business to be sold 2 years from today. [Even, if it’s unlikely you WILL want to sell, your goal must be to PREPARE your business for sale!]
  • Don’t ever issue equity to retain your key employees! It makes a sale of your business too complicated! Use a “Stay Bonus.” A “Stay Bonus” is a cash reward paid to your key employee(s) as a reward for staying with your consumer loan business through the sales transition to the new buyer.
    • Often, the buyer needs somebody who knows the business, the customers, the loan management system… and can keep the business running after the seller departs.
    • I’ve been involved in the purchase and sale of a LOT of payday loan & consumer lending businesses over the years. Many of these businesses are purchased by absentee owners. OFTEN, they absolutely insist the seller’s key employee(s) must remain after their purchase. So… how does the seller guarantee this will happen?
    • Basically, as you prepare your consumer loan business for sale down the road, you create a long-term cash reward program for your key employee(s).
    • IN A NUTSHELL: you set aside a cash amount equivalent to your key employee’s annual bonus in an account specifically targeted for each employee you want to remain on board through a sale. Allow your key employee to withdraw 1/3 of this account’s balance each year AFTER a 3 year waiting period!
    • Why is this important? If your key employee walks away from your company, they must make the decision to walk away from a SIGNIFICANT AMOUNT OF CASH AS WELL.
    • What else? When selling your company, at some point you’ll have to disclose this to your key employee. When you’re “selling” your key employee on your plan to sell your consumer loan company, you can “top up” the balance in the special “Stay Bonus” account you setup on their behalf.
    • Why this is important? Your key employee is richly rewarded for HELPING YOU SELL YOUR BUSINESS, to remain with your company and the new buyer and to make certain the sale of your business is successful FOR ALL PARTIES! WIN-WIN!

For more ideas, strategies and tactics for “How to Lend Money to the Masses Profitably,” get a copy of our newly updated “Bible” downloaded to your Inbox within 30 seconds: CLICK HERE TO GET YOUR COPY IMMEDIATELY.

How to Start a Consumer Loan Business: Installment Loans, Car Title Loans, Payday Loans, Consumer Loans

How to Start a Consumer Loan Business


The Future of Lending to the Masses

By: Jer-Trihouse. At this year’s NJ Tech Council FinTech Conference, held in September in Jersey City, Ron Suber, president emeritus and senior adviser at Prosper (San Francisco), a FinTech lending startup, spoke about the future of FinTech and the opportunities for startups getting into the area now.

Here are  just a couple of the points he made:

  • This is now the “Big Bang” moment in artificial intelligence (AI). “We see State Street and other banks buying AI companies because they want to take all those people in the call center and turn them into bots, using alternative information and intelligence.”
  • Startups have an opportunity in FinTech because the customer is evolving. Much as Spotify killed Apple Music and Pandora, startups can get in there and disrupt. People in their ’20s want something different. In response, capital markets are changing, data is changing. “It’s your job to understand all the pressure points.”
  • If you are running an innovative FinTech company and raising funds, you will not only have to explain what you will do with the money, but also how you’ll be able to deal with the pressure created by this next generation. Remember, the children of traditional customers don’t even enter banks, except to get a roll of quarters.
If you’re a brick & mortar lender, your future is dim. Same day funding is here. Your borrower’s phone will continue to be their 1st choice as a conduit to getting MONEY into their account or on their card. Your demographic is dying. I’m not saying your store will close tomorrow BUT you must begin to address this reality TODAY and focus on building the skill sets required to succeed as a lender in this new reality.
Need help with this? Selling? Buying? Reach out! DISCREET is my middle name: Jer at Trihouse Consulting
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EAT A LOT OF TURKEY, cranberries, cornbread… and enjoy your FAMILY! Unfathomable opportunities abound and time is precious! We’re THE LUCKIEST people to have lived on Planet earth! Enjoy the RIDE!!
Jer Trihouse 702-208-6736 Cell
Knowledge Store: Tribe & State-by-State Licensing Models

Great News: CFPB Payday Loan Lending Rule Stayed! Opportunities Abundant

Consumers WIN BIG! CFPB payday loan rule shut down!! And DEALS/OPPORTUNITIES are immense today.

Frankly, there has never been a better time to be “lending money to the masses.”

  • Demand for credit by borrowers is huge.
  • Stats are all over the map – depending on the source – but something like 60% of US households do not have access to $1000 cash in an emergency.
  • The big sub-prime lending season is almost upon us.
  • Jobs and ability to pay us back are through the roof.
  • Consumer optimism is sky high.
  • Washington D.C is not likely to devise too many roadblocks that could stifle all this enthusiasm.


U.S. District Judge Lee Yeakel reversed a previous order and grantedContinue Reading..


Inspiration, Always Be Learning, Payday Loans in Namibia & Title Loans in Mongolia

“The Cash Converters business model [750+ locations in 18 countries] offers a three-for-one income stream for franchisees – dealing in second-hand goods, pawnbroking and micro loans,” said Mukheibir.”

I spoke with a member of Cash Converter’s Team a few months ago. And recently, I received a call from “the largest car title loan operator in Mongolia.”

This is crazy! The majority of us are so focused on US consumers that we fail to pay attention to what’s going on “in the business of lending to the masses” in other countries.

Mongolia? Namibia? Kenya? Tanzania? Afghanistan? South Africa? India? Albania? Romania? Kazakhstan…? Serious, new consumer financial platforms are revolutionizing the business of lending money and money transfer throughout the world!Continue Reading..