Tag: payday loan business

27
Feb

The Money Doesn’t Know What It Doesn’t Know: Jer Trihouse

Jer Trihouse ConsultingBy Jer Ayles-Ayler * I got a call from  Hilary Miller, a lawyer buddy of mine. A group with more money than god wanted his counsel regarding entry into the small dollar loan space. When he explained they would have to pay him, they bailed.

Great! You have access to “the money.” So what! Do you really think attending a conference, making a few calls gathered from Linkedin, and talking with vendors with something to sell are going to deliver your “secret sauce?”

• Lead gen
• Analytical
• Collections/Underwriting
• CSR’s
• Software that does what you’re team wants it to do.
• Legal/Licensing/Compliance/Taxes/Offshore/Tribe/State
Tactics and Strategies
• Technology
• SEO/SEM/Mobile/Offline marketing

There are a LOT of really smart, creative people in our space. We aren’t making a ton of money by accident. We’ve learned the hard way – in the trenches. We’ve screwed-up royally BUT survived that early, catastrophic failure; well most of us :o)

So… you’re a lender. Oh, I get it. You’re an Internet guy now. You’ll do it all in your underwear from your beach-front home office ( Stop laughing, no cracks! That’s me :o) You really think you don’t need troops in the field, out in the trenches? Who is going to knock on doors and collect your money? Whose going to repo your collateral? Where are you going to store this stuff? Payday loans – the way most of us are doing them today – are toast! The PDL cheese has moved. You have to differentiate your products and services. It’s a new world, a savvy consumer, and more regulators than you can shake a stick at. Plus, plenty of lawyers to remind us of this on a daily basis.

Yep, it takes capital but that isn’t enough. It takes a village – I mean a team :o)

To succeed and survive, you must collaborate. You’ve got to “play BIG” with your Team to win. Our industry is changing rapidly. There has never been so much opportunity. Nor has there ever been so many challenges. Millions of consumers all over the world Want and NEED our products!

Expecting to “pick the brain” of an expert over lunch and launching your enterprise will lead to a catastrophic failure. Build relationships NOW; before you need them. Even those of us who have been in the game for years still have to invest time and money.

Want to explore? Need to put capital to work? Want to take your expertise in operations to the next level? Got a new solution for the industry but can’t get in front of the “players?” Hit me… Jer@TrihouseConsulting.com

Http://www.PaydayManual.com
702-208-6736
WARNING! I’m BUSY. Drop an email. Introduce yourself. I’m an old Dude. I talk to a lot of really smart folks all day long. (I’m serious!)  Put some bullets to me in writing. And NO, your input will not wind-up on my Blog :o) I have so damn many NDA’s and MOU’s I just assume we have one with you already!

Finally, if you’re going to be in Newport Beach or Corona del Mar in March, I like a nice red. I’m not sure what Hilary drinks. See you in the St. Regis. Go ahead! Just try to “pick my brain.”

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23
Jan

DFC Global Corp Earnings Report-Q2 2013

DLLR (NASDAQ) will conduct an earnings call Thursday, January 24th at 5:00 p.m. ET. (Get link below).

From their web site:

“DFC Global Corp. is a leading, international, diversified non-bank financial services company that has served under-banked consumers and small business owners for over 30 years. Through our retail storefront locations, websites and mobile platforms, we provide a range of consumer financial products and services in nine countries (the United Kingdom, Canada, the United States, the Republic of Ireland, Sweden, Finland, Poland, Spain and the Czech Republic). Our customers look to us…”

“Our products are principally unsecured short-term consumer loans, secured pawn lending, check cashing services and gold-buying services that provide customers with immediate access to cash for living expenses or other temporary needs. We also offer high-value ancillary services, including Western Union® money order and money transfer products, electronic tax filing, reloadable VISA® prepaid debit cards, foreign currency exchange, and other services.”

Note: Webcasts are typically available for 30 days. Visit http://www.dfcglobalcorp.com/ if you miss the live event. Link to join the Conference Call for DFC Global

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30
Jan

Payday Loan Industry-Opportunities, Challenges and Respect

Jer here. My rant today targets the multitude of opportunities in the payday loan space.

Capital is simply a commodity! Ask what your financier brings to the table in addition to dollars.

This isn’t a short analysis. You want superficial B.S? Click away now . Pay the price, invest 5 minutes of your time and THINK.

There are serious disturbances occurring today. Worldwide consumer demand, technology, regulatory oversight, extraordinary availability of capital, disclosure and cycle-of-debt issues…

What does all this really mean? There has never been more opportunity in our space than today. Sure, there are challenges.

DISRUPTION = OPPORTUNITY

Customers all over the world – by the millions – want our product.

What’s this mean to you? How do you want to get involved?

Do you want to partner? Are you an Investor? A Lender? Have capital? Need capital? Got an idea? Are you a vendor? A seller? Want to sell your stores? Your Internet operation? Sell your portfolio?

LET ME KNOW! I’M BOMBARDED DAILY by Lenders, Operators, Investors, Buyers, VC’s, Hedge Funds and Entrepreneurs! Let’s explore together…

Here are a few in no particular order:

  • Serious $$ ($2M-$10M+) needs placement. Very smart, experienced operators are in demand! The financiers need YOU! ROI? Depends on the “deal,” the structure, the Team, the terms,the exit strategy…
  • Capital looking for opportunities. Know anyone with a SOLID team in place, not a start-up, already have substantial “skin in the game ($$) who needs capital $2M+ for funding PDL’s (no infrastructure build-out, no operations expenses to be paid with a new capital infusion), probably earn 2% – 5%/month or more depending on the deal/structure/equity?
  •  Brick-n-mortar buyers with cash! Want to sell? Fast?
  •  Internet biz buyers. Want to sell your Internet Biz/Portfolio?
  • Investors: 3rd Party Lenders in Texas! Huge demand due to disclosure requirement of Third Party Lender on new CAB License as of January 1st, 2012. Fully collateralized, 15-20% annual ROI is typical. Secondary challenge is the $25k net asset requirement per location – operators need help with this kind of operating capital too. There are over 3,500 Texas CSO’s and Texas is blowing up with business
  • Operator with 10 years+ experience, started Brick-n-mortar, now have $150K on the street via Internet. Looking for $100K – $500K in tranches strictly for funding PDL’s via the Internet. Strong Team!. Couple of state licenses currently..Ready to rock-n-roll!
  • So. California stores for sale.
  • Mississippi stores for sale
  •  Missouri stores for sale
  • Several other states with stores for sale
  • We have a “ton” of small, very experienced Lenders in PDL or car title all over the USA looking for expansion capital. For example, very small car title Lender in TX, 15 years exp. looking for $50K for funding. These are not start-ups. They just can’t meet demand nor can they access the banks. Boatloads of this scenario! Beautiful, tightly run store winning system and making money.
  • Tribes need access to capital to launch PDL operations, casinos, check cashing stores, infrastructure, training and more.
  •  Exploring the tribal/sovereign nation model? Need help?
  • Are you a compliance pro? An “in-the-trenches collaborator” capable of working with “crazy” payday loan entrepreneurs?
  • Need help navigating the Texas CSO>CAB transition?
  • Are you a seasoned payday loan professional looking for new opportunities? Are you a Lender in need of experienced talent? Our industry in cranking! Complete privacy assured.
  • Analytic savants needed. Everyone is working on their “secret sauce.”
  • Plenty more all over the map but I gotta go row! Newport Beach is BEAUTIFUL today!

Look, my phone rings off the hook all day! Some days I’m on it non-stop. (Actually I have 2 cells, a notebook, a laptop, a desk top, and iPad and an iPod!).I’m buried with the daily dynamics and opportunities in Lending. Call me 702-208-6736. Send an email Jer@TrihouseConsulting.com with your ideas/needs.

And do your research! Get up to speed. Figure out what you want to do in this PDL game. It’s INTERNATIONAL! Visit the DFC Global web site and listen to their last 10K! Look-up Zest Cash, Wonga, DebtResolve… They’re all discussed on my Blog.

And PROTECT YOUR BUTT!

Finally: A RESPECTFUL, short comment about our industry by a Banker:
https://paydayloanindustryblog.com/bankers-can-learn-from-payday-loan-lenders/

NOW DO SOMETHING!!

702-208-6736
Jer@PaydayManual.com

Just getting started? http://paydaymanual.com/cash-advance-store.html

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26
Jan

Bankers Can Learn from Payday Loan Lenders

Payday loan lenders get a little respect! Michael Moebs, CEO of Moebs Services, was quoted in American Banker as follows:

“Banks can learn from payday lenders’ streamlined lending approach, says Moebs. “The thing that I’ve admired about that industry is it’s extremely efficient. They would make a banker’s head spin with how fast they can make a loan and how good they are at it,” he says. Payday lenders “take ten minutes to make a payday loan and the banker takes an hour,” he adds.

Personally, I think “an hour” is overly optimistic but the point is noted!

Of course, most of us know banks have been providing capital to the big guns in the payday loan industry since the 80’s. And several, including Chase and Wells Fargo, are offering payday loan styled products to their customers having basic bank accounts coupled with direct deposit. APR’s for their model can exceed 400%.

Read the Article here: American Banker – Banks Can Learn from Payday Lenders.

What do you think? Leave a Comment! New to the industry? Go here: Start a Payday Loan Biz

Jer@TrihouseConsulting.com

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16
Nov

State of the Payday Loan Industry Today

Here’s a quick summary of what’s going on in the micro-lending space today!

The Internet side is growing 30% – 35%. There is a constant influx of newer, younger customers accessing short-term lending products. They’re coming to us via the Internet and their phone. Rather than cannibalizing the stores, the Internet is bringing new customers to our services. A majority of these consumers have not appeared in our data bases before. Of course, Internet loans = higher default rates (double) but fixed costs are considerably lower. The keys to success here? SEO (Search Engine Optimization), SEM (Search Engine Marketing), smart lead buying, analytics, use of offline marketing strategies…

Sure, there are still millions of consumers entering payday loan stores all over the world! However, there’s a huge number of tech savvy, younger consumers entering the work force in search of “quick-n-easy” access to cash via technology.

Millions of new consumers graduate from high school and college every year. Many of them get jobs in spite of what you’re hearing in the media. And it doesn’t matter whether they’re in the USA, Canada, the UK, Poland, Finland, the AU… they tend to spend more than they make – it’s human nature!

For those customers that have already used our products, nothing has changed for them either. Consumers are facing higher costs for goods and services. Wages are flat to stagnating. They need money now! The ALICE demographic continues to grow.

Example? I got a call today from a lady in Virginia. She works for the department of education. She was sobbing because she needed cash to get her prescription. The problem? She had paid off her payday loan with a licensed lender in Virginia but she had not yet been removed from the Virginia state data base. She chose to get a loan to solve this challenge via the Internet! Multiply this experience by millions and you’ll begin to understand our industry and our customer.

The “in-home loan model” is going strong! The payday loan product is offered and serviced at the consumer’s home. This is particularly pronounced in the UK and the Scandinavian market. We’re seeing this develop in the USA car title lending market and payday loans to a lesser extent. It’s a growing trend!

The world wide pawn/ collateralized loan segment is growing dramatically. Pawn shops are experiencing record profits and growth in revenue. Typical monthly fees for these collateralized loans run in the high teens. Cloud based pawn software and internet transactions are beginning to appear in this segment as well. We’ve had a number of creative entrepreneurs reach out to us lately for help in reaching potential franchisees/investors or introducing new solutions for operators in the pawn business.

Scrap gold jewelry buying is going through the roof! We have clients netting over $50K per year in some very competitive markets. If you aren’t in this space yet, FIGURE IT OUT!

Regarding acquisitions? The lack of liquidity is creating a pipeline of realistic sellers. Very sophisticated money is on the prowl for partners who offer local expertise and opportunities for growth in markets that are new to them.

The bottom line? There has never been more opportunity in our space! Growth is world-wide. What should you do? Research! Figure out what you and your Team bring. Choose the right partners. Develop your “secret sauce.”
Consult, analyze, adjust, and implement. Then REPEAT!
Questions? Call me: Jer 702-208-6736 Jer@PaydayLoanIndustryBlog.com

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