Category: Texas


Extreme Consumer Loan Business Profits?

How to start a consumer loan business

Cash advance and payday loan businesses can offer superior returns for an entrepreneur focused on lending money to the masses.

Sure! We charge what are perceived to be high-interest rates because our customer acquisition costs and our default rates can be SCARY.

What to do? You simply build these metrics into your business plan.

You integrate with state-of-the-art customer acquisition channels, loan management software, and underwriting platforms. 

The interest rates we charge enable us to offer the 60% of USA households living paycheck to paycheck access to money when faced with a sudden financial challenge.

Do you know that 38% of households earning $100,000/annually are living paycheck to paycheck as well? 

In today’s economic environment, credit card companies are charging 29.95% APR. AND THEY HAVE LEVERAGE! Credit card companies report consumer payment history to the three major credit bureaus. We do not!

 Cash advance, payday loan, installment loan and car title loan companies can be profitable. However, it is essential to note that the profitability of a payday loan/consumer loan business will vary depending on many factors, such as:

The amount of competition in the area.

The demographics of the area served.

Are you funding loans via the Internet, a brick-and-mortar or a “blended” model?

Internet-originated consumer personal loan defaults are generally double that of storefront locations.

The efficiency of the business’s operations. Meaning customer acquisition costs, underwriting costs, servicing costs, processing costs, and collections costs…

The overall state of the economy. 

The state the consumer/borrower resides in.

Many states have regulations that limit the interest rates that payday loan businesses can charge, which will impact the business’s profitability.

For example, short-term consumer loan rates for borrowers residing in Florida are $10/$100 loaned. On the other hand, Texas is as much as $30/$100 loaned. California payday loans are $15/$100 loaned.

The ROI is strongly impacted by the types of loan products the Lender offers to the 60%+ of USA adults living paycheck to paycheck.

  • Personal loans
  • Car title loans
  • Installment loans
  • Amortized loans
  • Loans that depend on tips, accelerated ACH deposits
  • BNPL products that depend on merchant fees to earn a profit
  • Other

[A recent study revealed Buy-Now-Pay-Later [BNPL] companies are charging an average 380% APR when all the extra fees, tips, ACH acceleration fess… are computed!]

Achieving a 30% gross on your street money is typical. Many balance sheet lenders earn more. Many inefficient lenders earn less. As they say, “It depends!”

How to Start a Payday Loan Business

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

Meet me in san Antonio: The Business of Lending to the Masses

Just a heads up! I’m in San Antonio, Texas this week.
Want to meet up, let me know.  I’m here 5 days for meetings with international money groups entering the USA installment loan industry. Text 702-208-6736 Jer
Jer  “The Business of Lending to the Masses.”
Hi Jer
As always, thanks for being a loyal email subscriber. I appreciate hearing from you. Let me know if you ever have any questions, ideas, needs… Jer Cell 702-208-6736 Text

Texas Payday Loans, Title Loans, Personal Loans: CAB-Corona-OCCC Texas Advisory

The “business of lending to the masses” is scaling rapidly all over the country.

This is for our Texas lenders. It was issued 20 minutes ago.

It’s likely to serve as a template for the majority of States so I suggest you take a look.

Meanwhile, prepare to SCALE if you’re so inclined!

You may visit the OCCC link to read their PDF.


Date: Tue, Mar 17, 2020 at 2:48 PM
Subject: OCCC Advisory Bulletin on Coronavirus Emergency Measures for Credit Access Businesses

Dear interested stakeholders,

The OCCC has posted an advisory bulletin on coronavirus emergency measures for credit access businesses. A link to the bulletin has been posted at:

Any revisions to the bulletin will also be posted to this page.

Office of Consumer Credit Commissioner
2601 N. Lamar Blvd.
Austin, TX 78705

Tel 512.936.7600
Fax 512.936.7610

Jer – 702-208-6736 Cell
Trihouse Consulting. Lenders, Teachers, Resources, Knowledge

27068 La Paz Rd
Aliso Viejo CA 92656

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