You want to make serious money by lending money to the masses or you would not be reading this.
To be successful as a lender – or in any other entrepreneurial endeavor – you really only have to be good at a few things:
- Picking the right business niche
- Raising money
- Hiring good people
- Ability to iterate through your challenges
- Be bold. DO OR DO NOT!
Pick the Right Business Niche
Let’s get real!
Lending money to the masses can be very profitable!
Payday loans, signature loans, car title loans, personal cash advances, merchant cash advances, business to business loans… whatever you call them, all can be very profitable.
Real world example?
We’re charging $15 to $30+ for every 14 day loan we make. [Depends on the state we’re in or the tribe we collaborate with.]
That’s a 400%+ annual percentage rate (APR) for a borrower to use our money for two weeks.
I’ve watched stores reach $10,000 in loans after only being opened 3 weeks; within a year, $100,000 on a good week and generating $50,000/month in fees.
Sure. Lenders have costs. Payroll costs, utility costs, website costs, merchant processing, rent, legal, taxes… but you get the picture.
A lender’s inventory is MONEY!
It’s not flowers that die on you. It’s not food that rots. It’s MONEY, MOOLAH, COIN, DINERO, SCRATCH $$.
NICE!!
DONE! I’ve established that the business of lending money to the masses can be very profitable!
Raising Money
This is a mindset. It’s about presentation. Practice getting good at distilling your idea into a bite sized amount. Get your business launched.
I’m not taking about immediately achieving huge scale. Just get your loan business open for business and fund a few loans. Store front, Internet, mono-line, combo… just fund a few loans!
Next?
Friends, family, peers, members of your network… will find out what you’re doing.
They will want to learn more.
Don’t be shocked when they say something along the lines of, “I have $20K sitting in the bank earning 1% per year before taxes and inflation. Could you put my money to work in your new business?
Of course you can! Offer them 6%, 8%, 10%+ per year. You can afford it when you’re grossing 500%+ APR’s on your loan portfolio!
NOTE: Not sure how I’m calculating these APR’s? Go here: Sample APR Calculations
Hiring Good People
If you’re good at raising capital, you can hire people to do everything else.
You can hire a CEO.
You can hire a lawyer.
You can hire an experienced customer service representative.
You can buy “off the shelf” loan management software.
You can subscribe to a sub-prime consumer credit reporting service.
You can hire great people to do any part of this business you choose to.
YOU GET MY POINT!
To hire right, you need a big funnel. You have to sort through a ton of leads.
You need a system; an on-boarding process.
You’ve got to learn how to do this! [This intel is in our “How to Start a Loan Business.”
The quality of your life is about the people around you.
Everything that bad happened to you in the last 10 years did not happen in a bubble.
Someone either DID or DID NOT do something to you.
That’s life.
Most problems in life are people problems.
We let the wrong – or right – people into our lives.
In business there are some whack jobs! Don’t let them in!
Now go out and BE BAD!
Jer – Trihouse Consulting TrihouseConsulting@gmail.com
http://www.PaydayLoanIndustryBlog.com
