Category: Courses


For Lenders: “What If” Scenarios Excel Powered


You buy leads. Should you buy $2.00 leads? $10 leads? $50 leads? $100 leads? $185 leads? [The average CAC [Customer Acquisition Cost in our industry is $185.00]

What’s the impact on your loan portfolio if you convert 8% of $50 leads vs 3% of $10 leads?

What if you increased your “reacts” to 65% vs. 42%?

What if you could hire an offshore VA [Virtual Assistant] at $200/month and work to increase your organic leads to 20/day vs. your anticipated 5/day?

What would be the impact on your portfolio if you purchased 150 leads daily at $8 with a conversion rate of 4% vs. 100 leads daily at $50 each with a conversion rate of 18%?

What is the impact on your portfolio if you increased your average loan principal to $425 vs. $385? To $500? $800? Whatever?

What is the impact on your portfolio if you decreased your FPDs [1st time Payment defaults} from 30% to 12%?

What’s the impact on your P & L if you increase your employee average hourly rate from $12.50/hr to $15.25/hr

What if you bring your call center in-house?

What if you add online/storefront title loans to your product offering? Say an average $1200 loan principal with a term of 6 months at $20/$100 loan principal? At $25/$100 loan principal for 30-day terms?

What if you offered a 36% APR unsecured loan product? An 80% APR? A 120% APR?

What if you implemented a formal referral program and spiffed your employees $25/funded loan? Spiffed customers $50/title loan?

What if your ACH fees increased from $1.50/each to $1.75/each?

What is the impact on your portfolio and P & L if your LMS [Loan Mngt. Software] provider increases its monthly fee from $150/month to $200/month & $1.00 per transaction?

What if your ACH fees increased from $1.50/each to $1.75/each?

What is the impact on your portfolio and P & L if your LMS [Loan Mngt. Software] provider increases its monthly fee from $150/month to $200/month & $1.00 per transaction?

And on and on and on… Only your imagination limits your possibilities!

The purpose of what-if scenarios is not to predict the future, but to influence it.

Plug-in different scenarios into our “Financial Modeling Projections Tool.” Develop a plan to improve those projections and execute them.

Your financial projection estimates your business’s future revenue and expenses based on various inputs. Our financial modeling tool enables you to “play” with these inputs.

Invest Now! Only $50.00. Delivered to your Inbox. Visa, M/C, PayPal…

How to start a payday loan business, an installment loan business, a car title loan business...

How to Start a Consumer Loan Business: $297.00

Here it is! Our newly updated 500+ page Manual. We thoroughly explain step-by-step how to start & operate a profitable consumer loan business. 

How to Start a Payday Loan Business

The Course: “How To Start/Improve a Consumer Loan Business.”

  • Our 500+ Page Manual: $297.00
  • Topics covered:
  • How to launch a consumer lending business
  • Installment Loans
  • Payday Loans
  • Small Dollar Loans
  • Car Title Loans
  • Personal Loans
  • Signature Loans
  • Non-Secured Personal Loans
  • StoreFront Lending
  • Internet lending
  • Smartphone lending
  • Licensing? State/Province
  • What loan management software to use?
  • Capital required?
  • Profitability?
  • Collections?
  • Borrower Underwriting?
  • Store & Internet Lending tactics & strategies
  • Sample contracts, License apps…
  • Tribe model [“sovereign nation”]
  • Texas CSO/CAB model
  • $297.00 PDF Immediate Download
  • 100% Refund Policy [If you are not happy FOR ANY REASON with our Course, simply email for a 100% refund.]

If you’re worn out spending hour upon hour searching Google for consumer loan business strategies, know-how, software, licensing, consumer credit reporting, sample contracts, collection tactics, profitability, how much start-up capital you need, anticipated default metrics, and on and on and on… Our “Bible” delivers ALL THESE ANSWERS AND MORE! Answers to how profitable are they? How much do these businesses earn? Do you need a license? We update our “Bible” every 3 months.


How to Start a Loan Business in Canada, USA & More

How to Start a Payday Loan Business in Canada

NOTE: We are consultants for entrepreneurs who want to start or improve their payday loan business operations. We are not Lenders. We teach, consult, offer Courses and provide boot camps and phone consulting services enabling entrepreneurs with a desire to enter this industry to avoid failure.  We opened our first location in 1998 in Garden Groove, Calif. Today we own stores and online lending portfolios. Additionally, we teach, lecture, speak, consult entrepreneurs and companies in “The Business of Lending to the Masses.”

How to start a consumer loan company

For more information about our services, visit: Start Here

In Canada, a payday loan is a short-term loan with high fees for solving immediate, short-term financial emergencies. 

Payday loans are “expensive” money. Generally, depending on the Canadian Province, a payday loan consumer may borrow up to $1,500. 

Borrowers must pay the loan back from their next paycheque. Failure to pay back these loans on the promised due date result in more fees and interest charges.

This will likely increase your loan principal. 

Payday loans are designed to solve a cash shortfall until your next pay. Avoid using them for ongoing costs such as rent, groceries or utility bills. If you use them in this way, you may end up in financial trouble.

Both private and publicly traded companies offer payday loans in stores [brick-n-mortars] and online.

What to expect when you start a payday loan business

Here’s what you can expect if you’re considering opening a payday loan company.

  • The easiest method to determine the legalities involved is to simply get a payday loan. Visit your nearest competitor in your city and go through the process.
  • Get copies of everything; all the forms.
  • Look around! Whip out your phone and take pictures of any wall charts, regulatory info, consumer help alerts posted inside the location…
  • If there are payday loan stores around you, you know they’re legal!
  • So… get a payday loan/installment loan/title loan… Then, pay back the money in a couple of days. Consider this your first “investment” in your new business.
  • PS: If you cannot qualify for a loan at your competitor’s store, get a “shill.” Pay their fees.


  • Study our Course. It’s available here: “The Business of Lending to the Masses Profitably!” 
  • Our Course covers EVERYTHING you need to know about starting and operating a payday loan, installment loan, car title loan… business-to-consumer [B2C} loan business].
  • We thoroughly teach online and storefront models.
  • We provide sample consumer contracts, your State/Province licensing regulations and licensing forms.
  • We provide specific Chapters devoted to starting, getting customers, loan management software, underwriting consumers, funding your qualified borrowers, collecting your money, websites, marketing, employee hiring, strategies and tactics for learning from your competitors what does and does not work in your geographic area and much, much, more!
  • For a complete “Table of Contents” to our course, Click the Image:

Payday loan lenders typically require the following for borrowers to qualify :

Generally, payday lenders will require proof that a consumer has:

  • a regular income
  • a bank account
  • a permanent address

Before funding a payday loan, payday lenders will require borrowers to do one of the following:

  • fill out a form that will allow the lender to withdraw the total loan amount, including fees, directly from your bank account when the loan is due (also called a pre-authorized debit)
  • provide a post-dated cheque for the total loan amount including fees

Getting money from a payday lender to a qualified borrower

In most cases, the payday lender will deposit money into your bank account via an ACH, a check or, in a storefront environment,  give the borrower cash.

However, in some cases, payday lenders may require the borrower to take accept loan proceeds on a prepaid card. It may cost extra to activate and use the card.

Paying back a payday loan

Some payday lenders require consumers to repay the loan at the same location where they got the loan. Others offer online payment. We recommend and teach how a Lender can offer a multitude of payment methods both online and offline.

The Consumer Loan Agreement

Make certain you employ loan management software to compute all fees, payment periods, loan principals, payment schedules, APR’s… We teach all this in our Course! Payday lenders must require their borrowers to sign an agreement that shows your loan costs, including interest, fees, and the due date. FULLY disclose EVERYTHING to the consumer! [Our Course offers names and recommendations to the best companies offering cloud-based software enabling you to run a payday loan business from anywhere in the world!]

Find out your province or territory’s payday lending rules by contacting your provincial or territorial consumer protection office.

How much money do payday loan companies make?

A payday loan, installment loan, car title loan… Lenders can make great profits. There are zero guarantees because profitability depends on the Lender.

Payday loans are very expensive compared to other ways of borrowing money. This is because:

  • Borrowers pay high fees
  • Borrowers are charged a higher interest rate than on a regular loan or line of credit
  • Borrowers will have to pay a fee if their cheque or pre-authorized debit doesn’t go through the bank
  • Borrowers – on average – pay $17.50 per $100 borrowed every two weeks. That’s a 600%+ APR!
  • So… a borrower gets a payday loan of $300 from their Lender. Two weeks later they pay $52.50 in fees + the $300. At least 40% of these borrowers at a minimum will not pay anything towards the loan principal so the borrower “rolls-over” their loan. Thus another two weeks pass and the borrower pays $52.50 in fees again.
  • The average payday loan small business has 400 to 600+ customers!

As a Lender, be aware that a payday loan business is not all “peaches and cream!” Whether online, storefront or “blended,” you will have costs, headaches, employees…

But, the potential for earning a SUPERIOR Return on your Investment [ROI] is tremendous.

After all, your inventory is MONEY! You are nor investing in and operating a fruit stand experiencing rotting inventory 😆

With hard work, knowledge, implementation of the latest technology and tactics, Lenders can grow big, earn extraordinary profits and achieve a very nice lifestyle. BUT, at least in the beginning, IT WILL BE HARD WORK!

Figure 1: Comparing the cost of a payday loan with a line of credit, overdraft protection on a chequing account and a cash advance on a credit card (Based on a $300 loan for 14 days)

Graphic demonstrating the high cost of payday loans compared to other credit options

The costs shown in this example are for illustration purposes only and are based on the following assumptions:

  • a payday loan costs $17 per $100 that you borrow, which is the same as an annual interest rate of 442%
  • a line of credit includes a $5 administration fee plus 8% annual interest on the amount you borrow
  • overdraft protection on a bank account includes a $5 fee plus 21% annual interest on the amount you borrow
  • a cash advance on a credit card includes a $5 fee plus 23% annual interest on the amount you borrow

What happens to your borrower if they can’t pay back a payday loan on time?

There can be serious consequences if borrowers don’t repay their loan by the due date.

They may include:

  • the payday lender will charge you a fee if there isn’t enough money in your account
  • your financial institution may also charge you a fee if there isn’t enough money in your account
  • the total amount that you owe, including the fees, will continue to accumulate interest
  • the payday lender could call your friends, relatives or employer in attempts to contact you to collect the money
  • the payday lender could sell the loan to a collection agency and this could appear on your credit report
  • the payday lender or collection agency could sue you for the debt
  • the payday lender or collection agency could seize your property
  • the payday lender could take money from your paycheques (also called garnishing your wages)

If you can’t make your payday loan payments on time, it can be easy to get stuck in a debt trap.

Infographic: Payday loans: Make sure you pay on time!

Payday loans : Make sure you pay on time! infographic – see long description

What to know to be a payday lender

The total cost of borrowing you can charge. Be sure to find out:

  • all the fees, charges and interest
  • the correct date the loan is due
  • if there is a maximum cost you can charge for a payday loan
  • What does your competition charge
  • Fees applied if you’re borrower is unable to pay back their loan on time.

Understand that:

  • a fee is often charged if your borrower’s cheque or pre-authorized debit is returned due to non-sufficient funds
  • these fees can range from $20 to $50
  • many provinces have rules about maximum fees for non-sufficient funds
  • the amount can be much higher in provinces and territories where the fee is unregulated

Ask if there is a “cooling off” period. This is a period, often a day or two, during which a borrower can cancel the loan with no explanation and without paying any fees. The laws in many provinces protect this right. Make sure to know the “cooling off” period information.

Payday lending rules 

Each province and territory has different rules and restrictions around payday lending. However, many online payday lenders aren’t licensed and don’t follow provincial rules designed to protect borrowers.

Canada Fees and penalties

Many provinces regulate payday lending fees and penalties.

NOTE to Payday Loan Lenders! Laws, rules, compliance, regulations are in constant flux! The information below is almost CERTAINLY not current as you read it! Invest in our Course for the latest, most current information!

Table 1 – Payday lending regulations by province
Province Maximum cost of borrowing for a $100, 2‑week payday loan Cooling off period to cancel the payday loan Maximum penalty for a returned cheque or pre-authorized debit
Alberta $15 2 business days $25
British Columbia $15 2 business days $20
Manitoba $17 48 hours, excluding Sundays and holidays $20
New Brunswick $15 48 hours, excluding Sundays and holidays $40 (default penalty)
Nova Scotia $19 Next business day $40 (default penalty)
Ontario $15 2 business days n/a
Prince Edward Island $25 2 business days n/a
Saskatchewan $17 Next business day $25


In the following provinces, a payday lender can’t extend or roll over a payday loan:

  • Alberta
  • British Columbia
  • New Brunswick
  • Nova Scotia
  • Ontario
  • Saskatchewan

A payday lender can’t ask a borrower to sign a form that transfers your wages directly to them in the following provinces:

  • Alberta
  • British Columbia
  • Manitoba
  • New Brunswick
  • Nova Scotia
  • Ontario
  • Saskatchewan

Provincial laws define what a payday lender can do when trying to collect a loan. This includes when and how often a payday lender can a borrower and what tactics you can use to get you to pay.

These laws exist in the following provinces:

  • Alberta
  • British Columbia
  • Manitoba
  • Nova Scotia
  • Ontario
  • Saskatchewan

Canadian Entrepreneurs:

For more information about what rules apply to payday lenders or to make a complaint, contact your provincial or territorial consumer protection office.

How to open a loan business

Click the IMAGE to Invest in our Course: “How to Open/Improve a Consumer Loan Business”

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