Tag: how to start a car title loan business


Annual Payday Loan Convention – Fisca

Let’s discuss the annual payday loan and check cashing convention at the Mandalay Hotel in Las Vegas, organized by FISCA, the Financial Service Centers of America. This was certainly one of the most positive, uplifting FISCA Conventions I’ve attended in many years! For the most part, the “doom and gloom” of past FISCA Conventions simply was not present; really, really nice!

annual payday loan FISCA Convention

annual payday loan FISCA Convention

The dominant tone throughout the Payday Loan Convention was one of optimism; that we will survive and prosper. Sure… our products and services must evolve, but regulators and others who think they know what’s best for our customers cannot regulate into oblivion consumer demand for our products! Our customers desire and NEED US!!

Attendance was good. There were many, many exhibitors. The workshops were improved and audience participation was much better than at previous conventions.

Regarding the workshops, we were pleasantly surprised that Internet topics were included. FISCA has come a LONG WAY since the early 2000’s when I was told by a FISCA Board member I was an “Internet bandit and could look forward to a prison sentence.” (Seriously folks! Even though we were using the “payday loan state licensing model” at the time!!)

Anyway…on to the Financial Service Centers of America Convention.

General Sessions:
Bob Wolfberg, President of PLS Financial Services, gave a really exceptional presentation; extremely upbeat and positive! He received a thundering round of applause and deservedly so. Inspirational!! The future is ours! Our Industry will not only survive but PROSPER MIGHTILY!! We’ll attempt to get a copy of his presentation for your review in the future!!

Our friend, Hillary Miller, also participated in the FISCA General Sessions! You may recall the wonderfully positive piece he wrote for the Financial Services Industry that appeared on our Payday Loan Industry Bog here: “Impact of Title X, the Bureau of Consumer Financial Protection.”

Additionally, other speakers participating in the General Sessions, discussed industry lobbying efforts, compliance issues, our customer demographics, check discontinuance, marketing research, FinCEN, money transfer, risk management, Internet and mobile payments and much, much more! (We’ll get into details over the coming weeks.)

FISCA Workshops are typically moderated by people “with an axe to grind” because they generally have a product or service to sell. So, we were delighted to note that many moderators and presenters appeared to be present simply to provide their experiences, knowledge, and thoughts on our industry. Some really good questions and comments from the audience added to the presentations.

FISCA workshops covered the gamut from collections, marketing, Internet strategies, revenue builders, industry best practices, compliance, bank relationships, new products and services implementation, harnessing in-store and mobile marketing, employer-employee relationships, store operations and a lot more!

Again, we’ll discuss the specifics of several of the Workshops in future Newsletters. (NOTE: new strategies, tactics and services introduced at the FISCA Convention are already included in our latest version of our Payday Loan Startup & Training Manual and in our “Payday Loan Internet Report“)

Exhibit Hall:
Of course, there was the “usual cast of characters”… software providers, lead generators, insurance, bill pay, stored value, prepaid and debit card providers, employee verification, check cashing solutions, store layout, signage, safes, etc. You don’t want to overlook these companies simply because they’ve been around a while. They are constantly tweaking and improving their products and services. And… you can learn from them! Talk… ask… discuss… comment… learn… you may very well prosper as a result.

Interestingly, not only are there NEW payday loan, car title loan and check cashing software provider offerings BUT the existing software providers have improved their offerings. This is a big deal! These huge investments of time and money in, not only improving existing products and services for our industry, but the addition of new players is a major bet on our future by some very sophisticated investors and entrepreneurs! This bodes well for the future of ALL of us!

Finally, we can’t fail to mention a few new, or vastly improved, products and services for the financial services industry having exhibit booths in the FISCA Exhibit Hall. Scrap gold buying and car title loan services are just two of many we’ll discuss in future Newsletters to enable you to not only survive but profit substantially in micro-lending.

So, for specifics… look for our future Newsletters in the form of emails or check our Blog regularly at http://www.PaydayLoanIndustryBlog.com to gain access to new and exciting products, services, tactics and strategies for serving your customers and profiting in payday loans, car title loans, check cashing and scrap gold buying.



How to Start a Payday Loan Business

Starting a payday loan business has never been easier. Sure, there are some state or provincial regulatory issues to deal with. And you’ve got to navigate through the business structure scenarios available to you; LLC, S-Corporation, C-Corporation, Sole-Proprietorship, etc. ( A good introductory to this subject is Garrett Sutton’s book “Why Form A Corporation” from the “Rich Dad Poor Dad” book series). And yes, we know the Obama administration has lot’s of ideas that will eventually impact the payday loan, car title, check cashing and RAL ( Rapid Tax Refund ) industries. But hey, these little impediments simply eliminate the entrepreneurs lacking drive, ambition, guts and a degree of risk tolerance.

“Ease of entry” is a term that’s often tossed around by knowledgeable folks when considering entry into a new business. Mature entrepreneurs realize that barriers to launching a new business, like the payday loan or car title loan niches, are simply opportunities for them. They realize most people are simply lazy!  They want instant gratification. They want everything laid out for them. Actually they want everything done for them; and, they want it all done for free.

The point is, if it’s easy to enter a new market, a new niche, a new industry, and the perception is that a ton of money is being made, then competition will certainly appear. On the other hand, if on the surface, the general consensus is that it’s too difficult to jump through the hoops required to enter an industry such as payday loans, the typical new business dreamers will never do the work or perform the research to enter that market and compete. And that can be a good thing and a bad thing…

Why? Obviously it’s good when you’re in an extremely lucrative market and you have little competition. However, there is strength in numbers. There is strength when a significant number of competitors exist in a market having large numbers of customers. A large, competitive industry with large budgets can communicate their products and services benefits to consumers, the media and legislators. PAC’s (Political Action Committees) can be formed to fight regulatory encroachments by competing industries – such as banks and credit unions versus payday loans and car title loans.

The consumers, employees and businesses offering and using our services are voters. Obviously, the more voters who understand the benefits of our products the better our ability to survive. Never doubt that there are a great number of other industries that want our customers badly. They would love to see us go away! And they will use every ruse and distortion to accomplish their goal of eliminating us.

As a side note, it’s interesting that whenever actual customers, that is actual users of our products and services are interviewed, we are viewed quite favorably when compared to banks, credit card companies and more.

So… if you’re interested in starting a payday loan business, entering the car title loan industry, offering Rapid Tax Refund products or, for that matter, starting any kind of business that is new to you, do not fear the initial difficulties you’ll encounter. Consider these impediments to simply be part of “weeding out the chafe;” the elimination of the lazy and the incompetent.



The Secret – Payday Loans – Car Title Loans – Scrap Gold Business – How to Get the Info You Need

The Secret – Payday Loans – Car Title Loans – Scrap Gold Business –
How to Get the Info You Need

The information and help you need for your micro-lending business
is there for the asking. You’ve just got to learn the SECRET!

Because we not only offer consulting and training but we actually
“DO” payday loans, car title lending, scrap gold buying and more…
plus the fact we dominate the Internet in these niches… we find
ourselves on the leading edge for micro-lending “how-to
information.” Got a new product or service for our industry? You’re
gonna contact us and let us know about it. After all, we get
hundreds of phone calls and emails each week from new and existing
operators looking for help. Any vendor, supplier, potential or
existing operator performing their due-diligence is going to bump
into us. So of course, we expect to hear from them!

And yet it astounds me how reluctant many payday loan and car title
lender entrepreneurs are to tap into the network of pros in our
industry. Just consider all the existing operators, vendors,
suppliers, national and state organizations there are, who are up
to their eyeballs in our industry. Every day these industry
insiders are fielding phone calls and emails, answering questions,
tracking down rumors, explaining their services and investigating
their competitor’s products and services.


Our training materials list dozens of ACH providers, payday loan
and car title loan software solutions, I.D validation services,
compliance pros, legal experts, industry trade magazines, insurers,
bond agents, investors, regulators, reloadable debit cards, web
site developers, Check-21 services, consumer account verification
services, collection data bases, fraud prevention, check cashing
solutions, Internet lending turnkey solutions, OFAC help, stores
wanted, stores for sale, call centers, collection/debt recovery,
debt purchasing, rapid tax refund turnkey solutions, and on and on
and on…

Whether you’re a potential or existing operator CALL THEM! Ask
questions. Don’t be afraid to tell them your situation! You’re
brand new to the business? Let them know. You’ve been in it 100
years? No problem. Payday loans, car title loans, scrap gold
buying… they’re all dynamic industries! New models, technology,
rules, associations, legislation and more are introduced all the

Look, you’re busy running your business every day. You can’t
be expected to remain current on every aspect of these fast paced
businesses. So… set aside an hour each week to reread our
training materials and place a few phone calls. Prepare a couple of
questions ahead of time AND WAIT FOR THE RESPONSE!

Remember the old saying, “We have two ears and one mouth”, so ask
your question and then shut-up and listen. This is an art that many
of us, myself included, need to master.

Now this is important! I’m not suggesting you pick up your phone
on a whim or shoot-off an email every time you you need an expert
opinion about some aspect of your business. These people have time
constraints just as you do. Again, do a little research on your
own, prepare a few questions ahead of time and then allow yourself
to digest their response. Make it clear where you are in your
discovery process and end with a gracious, “Thank You.”

*************Our Sponsor******************************************
Vendors and suppliers: Reach over 5000 readers:


You’re brand new to the industry and you need info regarding payday
loan software. Call a minimum of three vendors listed in our Payday
Loan Training Manual or our “Payday Loan Internet Report” and
arrange for a free demo. Prepare a list of open-ended questions for
the sales rep. Ask them and then simply sit back and listen. Let
her know you’re brand new!

We’re not going to cover every conceivable question but after
asking questions such as:

What features and benefits does your payday loan software offer
that your existing customer base most appreciates?

What states/provinces/counties due you currently have clients in?

Are you integrated with any ID validation services?

ACH providers?

Collection tools? Templates? Email integration?

Back-end accounting functions?

What other products and services will your software support?

Veritec integration?

CSO capability?

Web Based?

Lead integration?

NOW! Don’t hangup the phone yet! Ask for their thoughts on the
current state of the industry and about your specific
state/province. Ask them for the contact info for a couple of their
clients located in your geographic area. Ask them if they offer
clients of Jer and Trihouse Payday Loan Consulting a discount AFTER
you’ve already been quoted a price for their software solution. Ask
them about upcoming association meetings and conventions. Ask them
what they think it takes to get started in the business.

Finally, remember to thank them!!! And if you’re impressed with
their knowledge and helpfulness, let their boss know with a quick

Then, digest what you just heard. It’s rare (but possible) to find
an unbiased sales person. So… try to imagine what their agenda is
and weigh this when developing conclusions about what you were just
told about the industry and their product or service.

There really are some truly great and extremely knowledgeable
vendors, suppliers, and operators in our industry. Many of them are
specifically mentioned in our training materials. You’ve got to
learn to reach out to them and LISTEN!

Then, one day when you get that call from the “newbie” or seasoned
micro-lender asking for your help, remember!

Remember to give a little!!

Micro-lending is a profitable and fascinating industry. Now go make some MONEY!

Questions? Comments? Ideas?


What is a Car Title Loan?

What is a Car Title Loan?

Car title  loans, sometimes called pink slip loans or auto title loans are short term loans designed to provide consumers who own their cars with immediate funds. Car title loans usually require repayment within a period of two to 4 weeks (some may last as long as 36 months) with high interest rates so they should only be used for short term, temporary financial difficulties.

The term, “auto title loan” or “car title loan” is due to the practice of giving the lender the title to your car as collateral for the loan. If the loan is not repaid on time you risk losing your car. Auto title loans are also known as “pink slip loans” in some states because of the actual color of the car title (pink). Car title loans should not be confused with payday loans; they are two different animals.

The ultimate penalty for not repaying a car title loan is repossession by the lender. Before it goes that far however, most car title loan lenders will attempt to contact the borrower and collect payment or make suitable arrangements. Because the car title used as collateral is usually worth at least twice as much as the loan on the car, boat, motorcycle, boat, or RV, most borrowers do everything in their power to preserve ownership of their vehicle.

Unlike typical pawn shop agreements where the pawn broker takes possession of the collateral during the loan, borrowers maintain possession of their car and continue to operate their auto as they repay their car title loan.

Recovery of a car involved in a car title loan in which the pink slip owner fails to make the payments is becoming easier in today’s marketplace. The use of GPS systems (global positioning systems) that reveal a car’s position at all times in conjunction with starter interrupt systems are making it extremely difficult for car title loan consumers to avoid having their vehicle repossessed.

Many car title loan companies have two types of loans available. With Title Loans (also known as Pink Slip or “You Drive” loans), you can still keep your car to drive. With Storage Loans (also known as Auto Pawns), your vehicle is stored in a secure facility. Generally, the auto pawn consumer makes NO payments until the vehicle is picked.

Car title loans are approved in a matter of minutes regardless of credit history. A consumer’s credit report and credit history have zero bearing on receiving approval for a car title loan. The factors that do play a role are:
1) The consumer must have a job or guaranteed income
2) The consumer must have the title to their car (or the loan proceeds must be partially used to pay off any leins on the car).
3) The consumer seeking a car title loan must have the ability to pay back the loan
4) In most states the consumer must be at least 18 years old.

A typical car title loan In the state of California, for example, means you can borrow cash on the value of your auto title [pink slip], with your vehicle serving as collateral to the loan. Your credit rating or score isn’t a factor in approval, and you can borrow anywhere from $2,600 to $50,000. Your application and the loan process is kept very private and it takes less than one hour to have your cash in hand. And no matter your reasons for needing—or wanting—the money, no one will bug you with questions as to your reasons or plans for the money. In California, car title loans are typically made or arranged pursuant to a California Finance Lender’s License