Category: Profits


Fintech Lenders “Don’t Need No Stinking Badges” Quo: Lender to the Masses

How to Loan Money to Strangers

Man, there are some serious new approaches to “The Business of Lending to the Masses” entering the marketplace.

I’ve previously broken down, and… and more on our Blog. Today, I point you to Quo.

Now if you’re “old school,” like I was back in the day, this will likely piss you off!

After all, to build your consumer loan business it’s likely you approached the launch of your payday loan business, your installment loan business, your car title loan business, your pawnshop business… whatever you choose to call it, and plodded through your state licensing process.

You then selected a loan management software provider, integrated with ACH and debit card providers, struggled to get a bank account opened… and on and on.

Just to get a State license can kill 30 – 90 days+.  Oh, you’re a Lender so let’s not forget to get your Bond! And your lawyer, your consumer loan contracts…

Of course, by collaborating with a federally recognized Native American Indian tribe you could get set up within 30 days and loan in 37+ States.

Why do I suspect the following Forbes piece will upset you?

Because these new Fintech Lenders “don’t need no stinking badges” – I mean licenses. [Shout out to Clint Eastwood in “The Good, the Bad and the Ugly.” Great movie and soundtrack!]

According to the Forbes article:

Quo relies on using AI to sort through a user’s financial transactions to understand their spending habits.

Once a user’s economic history is compiled and interpreted, the startup sends a debit card to the user for financial use.

The debit card allows access to two types of loans via a monthly subscription: $5.99/month for $400 at 5% APR or $9.99/month for $700 at 2% APR.

Those interest rates are dramatically lower compared to credit cards and payday loans.

The startup providing these loans via a small-monthly fee with borrower-friendly APRs reflects their mission of not wanting their users to be in debt.

Unlike the conventional credit business models, profit is not made by keeping users spending and perpetually in debt to pay interest, but by getting them out of debt to build savings.

These loans come with user-specified constraints, such as the money can only be used at merchants that are relevant to the purpose of the loan.

If someone is taking out the loan to make a car payment, then the user can only spend that money to pay off the vehicle for that month.

More importantly, if a user falls behind on their loan repayment, Quo is able to restructure the loan in real-time to adjust to a person’s immediate financial constraints.”

Read MORE here: Forbes

Shout out to the author of this piece on Forbes! Frederick Daso I write about college students and recent graduates founding startups.”

PS: Want to know how to jerry-rig and integrate all the “plug-n-play” platforms and services available today for launching a consumer lending company “on the cheap?”

Grab a copy of our “bible:” The Business of Lending to the Masses. Here’s the “Table of Contents.”

Or better, schedule a consultation with Me & my Team: Scheduling.

Visit Jer’s LinkedIn Profile: LinkedIn

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


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Profits: 2023 Demand for Car Title, Installment & PDLs

How to start a car title loan business
A new CFPB study revealed, "Between our 2021 and 2022 surveys, use of payday loans, installment loans, and car title loans increased dramatically nationwide! Demand for car title loans, in particular, rose nearly 3%."

The financial stability of Black and Hispanic consumers, renters, and under-40s suffered dramatically between 2021 and 2022, said the CFPB. 

The anticipated recession and higher unemployment in 2023 do not bode well for this demographic! 

“Despite a tight labor market, pandemic-era relief programs, including expanded unemployment benefits and stimulus checks, and lower consumer spending, financial well-being has returned to where it was in 2019,” the CFPB report revealed.

Unemployment remains low in December 2022, but many consumers are not prepared financially for unemployment, despite building large cash buffers and paying down debts during the first years of the pandemic. If they lost their main source of income, 37 percent of households could not cover expenses for longer than one month by using all sources, including savings, selling assets, borrowing, or seeking help from friends or family; 51 percent of Black and Hispanic households could not cover their expenses for longer than a month.

During a downturn, unemployment often lasts more than one month, and unemployment benefits can take several weeks or more to be deposited, leaving many households financially vulnerable to an unemployment period.”

[As a result, we lenders are tightening up our underwriting considerably. This strategy is reflected in our “loan-to-value” [LTV] metrics, our “ability to repay” calculations, and multiple KPIs as discussed in our Manual focused on “Lending to the Masses.” Car title loans, installment loans, and payday loans.]

Advertiser of the Month

Credit card debt has increased since June 2021 after falling early during Covid for all income groups.

“Meanwhile, one in eight households experienced lost income from unemployment or reduced work hours. Even more common, 34 percent of households experienced a major unexpected expense from vehicle repair or replacement, 31 percent a significant unexpected medical expense, 30 percent a computer or mobile phone replacement or repair, and 27 percent major household repairs.”

Here’s a link to the complete Study: CFPB “Making Ends Meet.”


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…


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

“Inflation Relief Price: $150.00

Our 500+ page Course: “How to Loan Money to the Masses Profitably.” Immediate PDF delivered to your Inbox.

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

Consumers Feel The Pain: Nationwide 36% APR Cap Theme Continues: Illinois and Nebraska Go Dark.

Consumers Feel The Pain: Nationwide 36% APR Cap Theme Continues: Illinois and Nebraska Go Dark.

By: Jer Ayles

Fellow small-dollar lenders, vendors, and MOST importantly the 50%+ of U.S. households who do not have access to $500 when the car breaks down, the utility bill is due, the kitchen is bare, the… well, you know what I’m saying! The politics surrounding “the business of lending to the masses” continues to create havoc for the unbanked and underbanked.

[Hint: There is good news below. It “ain’t ALL bad.” Our industry is blessed to have a cadre of savvy, creative entrepreneurs who continually strive to serve the millions of ordinary folks facing daily financial struggles.]

As you read the following, know that simply because our competitors [banks & credit unions who earn billions of dollars in overdraft/NSF fees every year while yielding 1800% APR’s] continue to make it challenging for the masses to access emergency cash, I HAVE SOLUTIONS!

If you’re a seasoned Lender with a portfolio of customers you want to continue to serve and help through these trying times, consider:

  • Go digital. You must be able to carry on via the Internet. Most likely your current loan management software already provides a sleek, easy transition.
  • Secure a lending license in a friendly State. A State that truly cares about its people. I like Texas right now. Our Team has been securing Texas CAB/CSO licenses for 12+ years. We offer a turn-key package. We have “feet on the ground” in Austin. Allow us to handle the intricacies & “go live” in 30 days. City ordinance issues in your State? Not a problem! We have a simple, EZ solution for you.
  • Collaborate with a federally recognized Native American Indian tribe. The “Tribal Model” has come a LONG way since the Scott Tucker days.
    • We’ve assembled a highly experienced Team of financial, legal, tax, asset protection, and business development savants offering introductions to Indian Country. State-of-the-art consumer finance loan products, in combination with integrity, honesty, and community service is our mantra. This is not your Mama’s old school payday loan; although many of our clients do still offer them by the millions annually.

NOTE: For those of you currently partnering with Indian Country and are unhappy with your current relationship, don’t hesitate to reach out! You’ll be pleasantly surprised how easy we can make your transition and more profitable for all parties. Use your existing LMS provider, your proprietary solution, or opt-in to ours. Your choice!

Know too that if you’re in need of:

  • A turn-key, white-labeled Loan App [both IOS & Android: No developers needed!]
  • Superior Instant Wage Verification [IWV] Real-time wages earned data pipe from 70K+ employers including Amazon, CVS, Walmart, UPS, Target, Best Buy… Visit Website
  • Instant Bank Verification [IBV] 100% guarantee we’ll save you money no matter who you currently use for IBV!
  • AI-powered consumer debt negotiation platforms. Our white-labeled platform enables your “Robot” to negotiate 24/7/365 with ZERO HUMAN intervention by your team. Your customer in default does not ever have to speak to a human. Negotiate, make a deal, collect your money! Visit Website
  • All the above white-labeled for YOUR brand!
  • If you’re an investor on the hunt for a superior return on your capital, reach out. The taxpayer-funded stipends will end. Demand for credit will scale. Negative interest rate bonds and CD’s do not make any sense for those of us having capital that must work for us. Inflation is a CERTAINTY!
  • We have the relationships with the Founders of each enabling you to bypass any middlemen!

Reach out to for a confidential exploration. [Be sure to include the topic you are interested in!]

And, if my message here was forwarded to you, signup for my free, monthly take on “The Business of Lending to the Masses” here: Blog [Signup is on the right-side]

Now! Regarding the latest 36% APR developments in Illinois & Nebraska:


The Predatory Loan Prevention Act establishes a 36 percent interest rate cap on consumer loans.
For Immediate Release
The Illinois House of Representatives passed the Predatory Loan Prevention Act today, implements a 36 percent interest rate cap on consumer loans, including payday and car title loans. The legislation passed with a bipartisan vote, without a single member voting no. It is part of an omnibus economic equity bill, one of the Illinois Legislative Black Caucus’ four pillars, sponsored by Rep. Sonya Harper.

In Illinois, the average annual percentage rate (APR) on a payday loan is 297 percent, and the average APR on an auto title loan is 179 percent. Federal law already protects active-duty military with a 36 percent APR cap. This bill extends the same protection to Illinois veterans and all other consumers. Seventeen states plus the District of Columbia have 36 percent caps or lower.
Waiting for Governor to sign this Bill.


What did Initiative 428 change about payday lending practices in Nebraska?

Initiative 428 amended state statute by removing the existing limit that prohibits payday lenders from charging fees in excess of $15 per $100 loaned and replacing it with a 36% annual limit on payday lending transactions. It also prohibited payday lenders from collecting fees, interest, or the principal of the transaction if the rate charged is greater than 36%. Payday lenders are prohibited from marketing, offering, or guaranteeing loans with interest rates exceeding 36% in the state regardless of the lender having a physical office in the state.

Here’s the link: Nebraska Initiative

At the time of the election, Nebraska law limited the loan amount to $500 and the loan term to 34 days.

Payday lending has been legal in Nebraska since 1994 with the passage of the Delayed Deposit Services Licensing Act. The last amendment to the statute was in 2018 by the state legislature. Under the existing law, lenders are prohibited from charging fees in excess of $15 per $100 loan. Loans are also limited to $500. According to the 2019 annual report on delayed deposit services produced by the Nebraska Department of Banking & Finance, the average loan size was $362, and the average contracted annual percentage rate was 405%. The total number of transactions for the year was 507,040.

How many other states have limited the annual percentage rate (APR) of interest charged on payday loans?

As of October 2020, a total of 37 states permit payday lending. Four states—Colorado, Montana, New Hampshire, and South Dakota—have enacted 36 percent annual interest rate caps that prohibit additional fees or charges. Three of those caps were passed through citizen initiatives: Colorado (2018), South Dakota (2016), and Montana (2010). Four states authorize payday lending with limits on APR, but permit lenders to charge extra fees on top of interest. The remaining 29 states authorize payday lending without limits on APR.

Here’s a link to the current Rate Caps by State: Payday Loan Statewide Rate Caps

FINALLY, this 36% APR theme is going to be a dominant issue during the Biden Administration. PREPARE for it!

That’s all, dear readers!

Jer: Trihouse Consulting 702-208-6736 PDT





Consumer Loan Executive “Savant” Available to a Few Select Clients

Do you need an executive with 15+ years of experience in “the business of lending to the masses?” And no, I’m not referring to me! I’m too busy + this would destroy my lifestyle!

Here’s the deal: A “Savant” in our industry is accepting a few new clients.

Short & sweet! Do you want an intro?

The Savant [Focused on Operations!]

15+ years of continuous immersion in the B2C loan space. Consulting, data analytics, risk modeling, digital transformation, banking relationships, loan management software, customer acquisition strategies, underwriting, lead gen, compliance, ping trees, SMS marketing, SEO, operations, scaling portfolios, online & offline expertise, instant wage verification, instant bank verification…

How do you collaborate with this savant? On-Site? Remote? Short-Term Engagements? Recruit? Retainer…? YES!

FLEXIBLE Arrangements Available? Yes!

Our selection Process? You must be interesting!

You want an intro? EMAIL: TrihouseConsulting@gmail,com

You’ve managed to survive the riots, the “peaceful” protests, Corona, FED subsidies, unemployment benefits on steroids, the digitization of our industry, Fintech, our cost of capital… Is it time to invest in yourself & your Team via a brainstorming session with an outside, independent, HIGHLY experienced “operator?”

PS: Don’t feel like the Lone Ranger! Know that the majority of Lenders I talk with on a daily basis, are scrambling to keep up! “The business of lending to the masses” is undergoing tremendous disruption. You know it and I know it! And everyone you reach out to is trying to sell you the latest and greatest… you name it to solve YOUR problem.

Again: You want an intro? EMAIL:

How to start a consumer loan business

YOU NEED an executive with 15+ years of experience in the business of lending to the masses! Payday, Title, Installment…


$2000 Turn-Key “Small-Dollar Loan Business in a Box” for Lenders & a Loan Strategy a la Chime Bank

A colossal quantity of intestinal fortitude and enormous liquidity is required for a balance sheet lender to fund small-dollar loans in this environment!

Frankly, if you have been following my counsel, invested in our “How to Lend Money to the Masses Profitably Course,” scheduled and/or completed a consultation with me, you are already hunkered down, 100% focused on hoarding cash, achieving liquidity, and performing “soft-collections.”


“The business of lending to the masses” will never be the same. Many of the pre-Corona small-dollar lending incumbents will be gone! If you’re attending a Zoom webinar with your peers, know that 7 of every 10 participating will not survive.

What’s that mean for you? OPPORTUNITY!

Consumers, since “the beginning” NEED CASH! Their need for CASH will never abate! So, be ready to SCALE SOON!

Digitize your small-dollar loan business.  That means enable your customers to both borrow and pay you via their phone, tablet, computer…

No longer does this require tens of thousands of dollars to accomplish! “B2C Lending in a Box” solutions exist now. Turn-key packages to “go live” are available for as low as $2,000.

These $2000 complete “loan business in a box” packages include:

  • You select from a multitude of custom website Themes [see just a few of them below] targeted for lenders that are ready to rock-n-roll.
  • Your Theme will be customized exclusively for your needs.
  • Changes to the Loan Application Fields ( Remove or Include fields)
  • Change the color of the themes.
  • Includes branding and logo.
  • Fully Responsive – Mobile Friendly website(s)
  • Online Loan Application
  • Social Media Setup and Integration
  • Google Analytics Integration
  • Inclusion of Keywords and Meta-tags for SEO
  • Hosting Support
  • The website will be tested for performance and will be optimized

Here is the list of items that you, the lender must provide:

  • Textual Content to be placed in the website
  • Logo and Graphics – if you want specific images to be included [Hint: use]
  • Any specific color themes to follow
  • Slogans/phrases/taglines to be placed on the website.
  • Hosting / WebServer/Domain details and credentials to host the website. [Hint: budget $15/year for your domain. Budget $5 -$20/month for hosting.

If you’re already a Lender, integration with the Loan Management Software that you currently use will be performed and charged at the rate of $48 an hour. This from the developer, “We don’t know their existing LMS and its API. Therefore, we don’t have the ability to provide an estimate for this. If they want the leads from their website to go to the LMS, they need to provide us the API documentation.

NOTE to current & prospective Lenders: in addition to building mobile-friendly and responsive websites for Lenders, these developers also offer complete, state-of-the-art consumer and merchant cash advance loan software solutions. If you’ve been considering changing your current LMS provider, these are the guys to employ! They have flat-rate packages available. I’ve been recommending AND using them for years!

Ready to get started? Email your Contact Information to Jer: 

Consumer Loan Business Websites

FINALLY, here’s one interesting idea brought to my attention by American Banker.

Chime Expands Stimulus Advance Offering to 100,000 Customers

Digital only bank Chime was one of the first firms to offer customers a chance to advance part of their stimulus check and the company is now expanding the offering to 100,000 customers; the expansion comes with the caveat that users can limit advances to $200 per person; the initial program was piloted to 1,000 customers who had the ability to draw up to $1,200, most advanced between $100 and $350; “The insight we got from our first pilot was that the vast majority of people did not want to access the full $1,200,” said Chris Britt, Chime’s CEO, to American Banker. “In listening to our customers, through social media and direct feedback, a lot of people said they could use $100 or $200 to go to the grocery store one more time. We wondered if we could just reduce the dollar amount since it appears people aren’t accessing it anyway, and offer it to more people.”; Chime is taking on the risk as it does not know who will receive stimulus checks but they believe the advance is worth the investment to acquire a customer.


How to Start-Improve a Consumer Loan Company? Installment, Payday, Car Title

A typical question I get every day about starting a consumer loan business:

My name is XXXXX and I live in the State of XX in Center City. I want to have my own check cashing  / Vehicle Title loan business but what if I don’t have money to open one up in the beginning? Does you guide – your “bible” –  advise on what to do, etc? Everything basically?

We certainly do! But you have to be realistic. You need to know the intricacies of “lending money to the masses profitably”, you need to be aware of the latest technology, underwriting, production. advertising… strategies for servicing this demographic, you need folks with money to buy into you and your vision!

How to open a loan business

How to Open/Improve a Consumer Loan Business

We provide the knowledge, know-how, inside tactics and strategies. YOU must implement it.

The demand is huge! Billions lent every month at sky-high interest rates. The profits are there to be had. No single incumbent has more than 6% of the market today. And yet Enova and Curo just reported they each lent out nearly $400,000,000 to consumers in the last 3 months at 200%+ interest rates!
Jer – Trihouse

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