By: Jer Ayles. Banks do not want payday loan consumers as customers. It’s true that a bank’s cost of capital is low, but they do not service sub-$3000 signature loans efficiently enough to make serious profits. Frankly, they do not want to be bothered. Bankers are too busy funding Bitcoin ETF’s and ICO’s, even if only privately.

Simple minded bank employees just want to get the payday loan demographic out of their bank branches; “those people.” Anyone who has worked in a bank knows exactly what I’m saying.

Hell, even the CEO at Elevate, a publicly traded Internet lender that reinvented itself (100% payday loans to signature loans at 100%+ APR’s), said as much during a recent interview! Jer Trihouse.

The fact is, the CFPB is undergoing a major reconfiguration. Their unjustified attacks against lawful businesses are at an end. A “new sheriff is in town.” “The Trump administration now has a perfect opportunity to close the corrupt and ideologically partisan Consumer Financial Protection Bureau (CFPB).” Payday lenders and other former, or potential, CFPB targets have been partying: World Acceptance (NASDAQ:WRLD), OneMain Holdings (NYSE:OMF), Santander Consumer (NYSE:SC), PHH Corp. (NYSE:PHH), Enova (NYSE:ENVA), Ezcorp (NASDAQ:EZPW)…

Meanwhile, our payday loan business model has evolved into a 6 – 24 month amortized loan product. ABILITY TO PAY HAS ALWAYS BEEN OF GREAT IMPORTANCE TO LENDERS; in spite of the ridiculous assertions made by politicians, the media and regulators.

Payday loan, car title, signature loan lenders… WE WANT OUR MONEY BACK! We submit our customers application data through a multitude of highly specialized underwriting data bases and perform significant due-diligence on every loan applicant. Ultimately our decision to fund a loan is based on our assessment of our loan applicant’s ability to pay us back.

This transaction – in spite of what the naysayers peddle – really MUST BE a win-win for both the lender and the consumer!

Meanwhile, there are basically three arenas you, as an entrepreneur, can go to battle in today:

• Lending money to the masses. Your inventory? MONEY. (Yes dollars – not fruit, not books, not goods…) Profits? 100%+ annually IF you don’t screw up.
• Cannabis. We all know that, in spite of the FED’s Schedule 1 designation, serious money continues to be made with the marijuana plant. Until the IRS cancels 280E, it’s a challenge to make serious, bankable profits. I’ve attended the biggest Cannabis Business Convention in the world the past 4 years in a row and it would blow your mind to witness the bags of cash floating around “looking” for a bank so the owner can legitimize their revenue.
• Cryptos. I admit it. I got my Coinbase account back in 2013 and bought my first Bitcoin at $325. Today, I own Bitcoin, Ethereum and Litecoin. I’m gambling on a few more today…

Lending Money: Now that the CFPB has been deconstructed by President Trump, the interest in launching and funding small dollar loan companies by venture capitalists, family offices, and entrepreneurs from all walks of life is through the roof! The business of lending money to the masses is back!!  You interested?

Revised and updated for 2018. “How to Start a Payday Loan, Signature Loan, Small Dollar Lending Business” by Trihouse Consulting.