Category: Uncategorized

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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15
Oct

Bedford Texas City Ordinance: Payday Loan Stores

 

A Typical Texas Payday Loan City Ordinace

ORDINANCE NO. 16-3183

AN ORDINANCE OF THE CITY OF BEDFORD, TEXAS SETTING FORTH REGISTRATION

REQUIRMENTS AND CREDIT EXTENSION GUIDELINES FOR CREDIT ACCESS BUSINESSES;

CONTAINING A SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING AN

EFFECTIVE DATE.

WHEREAS, the City of Bedford, Texas is a home rule city acting under its Charter adopted by the

electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local

Government Code; and,

WHEREAS, the City of Bedford, Texas contains credit access businesses, which provide payday

loans and advances to consumers who work and reside within the City; and,

WHEREAS, the City Council of the City of Bedford has determined that certain credit access

businesses engage in abusive and predatory lending practices, offering easy money to those

members of our community who are in a tight spot with onerous terms and fees; and,

WHEREAS, the practices of certain credit access businesses cause members of our community to

become trapped in a cycle of short term, high interest loans resulting in large debt and huge

payments; and,Continue Reading..

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05
Aug

Open a Payday Loan Company

You want to start a small dollar loan business?

A payday loan or car title loan company for example?

Don’t overly complicate this.

How to start a payday loan business

Start a PDL Company

If they are legal where you live, simply visit a competitor offering the types of loans you would like to offer. Appy for an receive a loan. Borrow the minimum amount; say $50 – $100. Get copies of EVERYTHING. All the documents, take a quick picture of the loan charts on the walls. Take note of the licensing authority typically disclosed on the walls of this competitor as well. In the USA, Canada, UK… these consumer disclosures are mandated.

Then, take these docs home and reach out to the licensing authority for details on applying for a license. There is much more to this subject than can be explained here… consider our Payday Loan Startup Manual described here: Payday Loan Business Bible

And, if payday loan or car title loan companies are not legal where you live/work, consider offering them via the Internet. This is not much more challenging than opening a payday loan or title loan store. And of course, we thoroughly teach you how to do this in our “Bible.”

Questions? Jer@PaydayLoanIndustryBlog.com

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22
Nov

ENOVA Payday Loan Job Position

Job Description

Payday & Installment Loan Analytics Services Manager

Your head honcho: Sr. Manager of Analytics

Our Analytics team:

Enova’s Analytics team consists of over 50 quantitative professionals dedicated to using the latest cutting-edge techniques to drive business value.   We are a shared service for the entire company and operate in four core Analytics workgroups:

  • Portfolio Analytics –we focus on building cutting edge risk, pricing, and underwriting models to optimize our lending decisions by using advanced modeling and simulation techniques to optimize the performance of our loan products and operations.
  • Fraud Analytics – analysts on the fraud team use advanced data mining techniques to identify and fight online fraud.
  • Marketing Analytics – the marketing analytics team is focused on applying statistical analysis and predictive modeling to help our marketing teams acquire and retain more valuable customers.
  • Research and Platforms- the RAP team builds and maintains all of our technical tools and platforms.  They help investigate new analytics methodologies, use cases, and data sources, to institute new and best practices within the department.

At Enova we have a company-wide culture that emphasizes data-driven analysis.

This is where YOU come in:

How to start installment loan companyAs an Analytics Services Manager you will be one of Enova’s most valuable resources.   You will be the delivery leader and SME for all of our Analytics products and services provided. You will demonstrate the ability and experience in building relationships both internally and externally.  You will serve as the point of contact for new business pursuits for our Analytics Services team.  Throughout client engagement you will lead the delivery to ensure exceptional results.

Kudos to you if you have:

  • A Master’s degree or PhD in related field of study
  • Experience in Analytics at a financial institution
  • A strong understanding of delivering financial services through the Internet.
  • Proven experience leading a credit/risk analytics, or modeling team, where team members were responsible for quantitative analysis, and model building.

Job Requirements

You’re right for this job if you have:

  • A Bachelor’s degree or equivalent experience, required
  • At least 12 years of experience in an Analytics or related field
  • Previous experience in client facing positions
  • Supported team members in managing projects in areas that involve

Analytics Services

  • Strategic and business development experience
  • Advanced knowledge of statistical/econometric modeling
  • Previous experience with advanced programming skills for meaningful data analysis
  • Must have strong business acumen and communications  skills

Click to Apply: here

The payday loan, installment lending, P2P, merchant cash advance… industry is experiencing unprecedented growth! Demand for loan products continue unabated while the loan products evolve.

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08
Oct

Zest Finance CEO on Payday Loans

Zest Finance

TEDxNewWallStreet – Douglas Merrill – New credit scores in a new world: Serving the Underbanked

Wow! 12,000 payday loans funded every 11 minutes! Zest Finance entered the payday loan space when their founder got a phone call from his sister-in-law. She needed to borrow a few hundred bucks to purchase tires so she could get to work.

Luckily for her, Doug Merill, ex-Google honcho and founder of Zest Finance, had the cash.

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