Tag: installment loans


A 36% APR on a 2-week loan = customers pay $1.38 per $100 borrowed.

Learn how to start a consumer loan business! Your inventory is MONEY! What could be better? Zip!


Consumer Loan APR Rates

By: Jer Ayles

FALLACY #1: Payday lenders, car title lenders, installment lenders, and all small-dollar loan lenders can earn a profit under a state-imposed 36% annual percentage rate cap.

FALLACY #2: Small-dollar loan customers should simply go to a bank rather than me. My worst critic knows that banks DO NOT WANT my customer! Banks think my customer is a giant PAIN! My customers are not comfortable inside a bank. If you’ve visited a bank lately, you know it requires an act of god to even talk with a banker. Fuhgeddaboudit!

FACT: A report by Professor Victor Stango, “…a 36 percent cap eliminates payday loans. If payday lenders earn normal profits when they charge $15 per $100 per two weeks, as the evidence suggests, they must surely lose money at $1.38 per $100 (equivalent to a 36 percent APR.)”–Economists Robert DeYoung, Ronald Mann, Donald Morgan, and Michael Strain, Federal Reserve Bank of NewYork  

So-called consumer protectionists and competitors [think pawn shops, banks, credit unions, and lenders servicing 640+ FICO consumers via long-term, $3000+ loans] lobby hard for capping interest rates at 36%.

A 36% Annual Percentage Rate Cap in the real world =

  • $100 borrowed would generate $1.38 per month in interest.
  • That’s equivalent to $.10 per day.
  • A $100,000 “book” [portfolio – “money on the street,” would earn $36,000 per year in top line revenue.
  • In other words, $36,000 per year or $3000 per month GROSS.

The Reality?

  • I cannot pay my storefront rent with $3000 in monthly fee revenue with a $100,000 portfolio!
  • I need 2.5 employees. [How much $$$$ in wages and benefits is that in your locale?]
  • My average cost of capital is 12%.
  • Bad debt. My net chargeoffs are 18%.
  • My CAC is $185.
  • Additional line item expenses include insurance, security, underwriting, phones, utilities, licensing, state audit fees, collections, text messaging fees, and loan mngt. fees, office expenses…
  • Taxes.
  • Accounting, legal & professional fees.
  • Unlike credit unions, various community groups & banks, my business is NOT subsidized.
  • While my competitors technically provide <36% loans to a limited pool of subprime consumers, they evade the 36% APR cap by selling expensive insurance products to their customers, products that are NOT included in the loan’s APR calculation. The result? 180%+ APRs.
  • My customers WANT & NEED my loan products! They know my loan product is expensive. I tell them it’s expensive. The fees I charged are plastered all over the walls of my store and on my website. My team doesn’t hide our fees. EVER! There is no need.
  • My customers desire loans of $100 – $500. Who is going to take a chance on them? Not a bank? Not a credit union. Their friends and family, who my customer is too embarrassed to ask for a loan, are OFTEN in the same boat. Where to turn in an emergency? Food, Car repair, medicine, rent…
How to start a loan business

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

62.5 Million Households Need Access to $400 Cash Fast

Approximately 50% of U.S. households [PEW] cannot access $400 cash when faced with a sudden financial emergency! That’s 62,000,000 million households! 🙄 And this trend is getting worse!!


Stuff happens. The get-to-work car breaks down. You need to fill a prescription. Your bank dishonors your check to one of your utility companies. Your check bounces! You owe the bank $37. You owe your utility company for last month. They charge a late fee, a reconnection fee, and threaten to turn off your electricity, water, gas… Maybe you’re self-employed. You’re a small contractor. You got the job but you gotta make payroll 2X before the homeowner pays you. Unable to make payroll, your crew will revolt! Yada, yada, you need cash ASAP for any number of reasons. What to do?


Again, that’s the question roughly 62,5M U.S. households – and growing – face every year!


Solutions? Beg, borrow, steal from friends, family, strangers… Your credit card – if you even have one – is maxed. You’re too embarrassed to borrow from friends and family again. Plus, they are in the same boat you are. Church? Maybe.


My readers likely can’t relate to any of the above situations. But, millions of good folks face these situations every year.


So, as an entrepreneur and an investor, how do you fit into this picture? How do you serve this 50%, help them solve their money challenges, help them keep their dignity, and earn a superior ROI on your inventory: MONEY!


That’s right. MONEY! Your inventory is CASH. Not flowers that die. Vegetables that rot. Not ice cream that’s messy and melts. Not greasy mechanic shops, a franchise you must pay up 8%/month to your Franchisor. There are zero better businesses to be in than lending money to the masses.


Here’s why. Next Post coming this week. Signup to be on the list:


How to Loan Money to the Masses Profitably

Consultant: The Business of Lending to the Masses 

To be successful as a lender – or in any other entrepreneurial endeavor – you only have to be good at a few things:

·       Picking the right business niche

·       Raising money

·       Hiring good people

·       Ability to iterate through your challenges

·       Be Bold. Go where others fear to tread.

Let’s get real! Lending money to the masses can be very profitable!

We are rapidly becoming a nation of “haves” and “have not’s.” The average U.S. worker is paid $23/hour. In real terms, $23/hour has the same purchasing power as $6/hour 40 years ago. The result? Staggering household debt! [Yes, I know! Many of you are reading this Course as you sit in Australia, Europe, the Islands, China… It’s the same theme everywhere. The business of lending money.]


80% of the U.S. is living paycheck to paycheck! [CareerBuilder.com] One in three people are subprime borrowers.[<620 Credit Score.]


Two in five U.S. adults do not have access to $400 cash immediately. Not in a bank account, not on a credit card, not under the mattress… They’ve already borrowed from friends, family, their church… Nowhere to turn but to YOU!


What’s this mean to you? OPPORTUNITY!


The team at Trihouse will teach you how to loan money to the masses without getting your ass handed back to you. Yes, for many of you, reading this tomb will be PAINFUL! It’s the price for entry and success.


The loan products discussed here are installment loans, payday loans, signature loans, car title loans, personal cash advances, merchant cash advances, business to business loans… Call them what you may. All of them can be very profitable.


Real-world example?

In California and Texas, we’re charging $15 to $30+ for every 14-day loan we make. [Depends on the state licensing model used or the Native American Tribe we collaborate with.]


That’s a 400%+ annual percentage rate (APR) for a borrower to use our money for two weeks!


We’ve had stores reach $10,000 in loans after only being opened 3 weeks; within a year, $100,000 on a good week and generating $50,000/month in fees.


Online lending?

Sure. Lenders have costs. Payroll costs, utility costs, website costs, merchant processing, rent, legal, taxes… but you get the picture.


A lender’s inventory is MONEY!

It’s not flowers that die on you. It’s not food that rots. It’s MONEY, MOOLAH, COIN, DINERO, SCRATCH, DOLLARS, EUROS… NICE!!

DONE! I’ve established that the business of lending money to the masses can be very profitable!


Raising Money

This is a mindset. It’s about the presentation. Practice getting good at distilling your idea into a bite-sized amount. Get your business launched.


I’m not talking about immediately achieving a huge scale. Just get your loan business open for business and fund a few loans. Storefront, Internet, monoline, combo… just fund a few loans!



Friends, family, peers, members of your network… will find out what you’re doing.


They will want to learn more.


Don’t be shocked when they say something along the lines of, “I have $20K sitting in the bank earning 1% per year before taxes and inflation. Could you put my money to work in your new business?


Of course, you can! Offer them 6%, 8%, 10%+ per year. You can afford it when you’re grossing 500%+ APR’s on your loan portfolio!


NOTE: Not sure how I’m calculating these APRs? Go here: Sample APR Calculations


Hiring Good People

  • If you’re good at raising capital, you can hire people to do everything else.
  • You can hire a CEO.
  • You can hire a lawyer.
  • You can hire an experienced customer service representative.
  • You can buy “off the shelf” loan management software.
  • You can subscribe to a sub-prime consumer credit reporting service [CRA].
  • You can hire great people to do any part of this business you choose to.



To hire right, you need a big funnel. You have to sort through a ton of leads.


You need a system; an on-boarding process.


You’ve got to learn how to do this! [This intel is in this Course.]


The quality of your life is about the people around you.


Everything bad that happened to you in the last 10 years did not happen in a bubble. 


Someone either DID or DID NOT do something to you. 


That’s life. 


Most problems in life are people problems. 


We let the wrong – or right – people into our lives. 


In business, there are some whack jobs! Don’t let them in!


Now go out and BE BAD! Jer – TrihouseConsulting@gmail.com

Jer Ayles, Consultant: How to Start a Consumer Loan Business

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Consultant: The Business of Lending to the Masses
How to Loan Money to the Masses Profitably. A few words about small-dollar lending in today’s environment by Jer Ayles, Partner at Trihouse Consulting. We began our journey as Lenders! We’ve “worked” deep in the weeds. Zero academics here!

National 36% APR Cap Introduced

A National 36% APR CAP INTRODUCED! Lenders, NEED HELP? We have STRATEGIES. Reach out to Jer@theBusinessOfLending.com

“WASHINGTON – A bill to protect consumers who borrow with consumer loans has been introduced by U.S. Senate Majority Whip Dick Durbin (D-IL) and other lawmakers.
The bill, known as the Protecting Consumers from Unreasonable Credit Rates Act, would cap fees and interest on consumer loans at an Annual Percentage Rate (APR) of 36 percent. This is the same limit that currently exists for loans marketed to military service members and families.” https://lnkd.in/gumxCxa


Loan Tools You Need Today for Tomorrow. Lenders Beware: Biden + CFPB = More Heat!

By Jer Ayles: Face Facts, Small-Dollar Lenders!

A Biden Presidency means certain “pain” for Lenders. Business to Consumer [B2C], Business to Business [B2B], MCA [Merchant Cash Advance], payday loans, installment loans, car title loans, line-of-credit loans, Fintech, wage advance… all will face increased scrutiny, compliance issues, and increased legal costs.

Of course, CONSUMERS will be the biggest losers because we still have roughly 40%+ of USA households who cannot access $400 cash when facing a financial emergency! And it’s these high-risk folks who must pay for access to our cash. No one else will lend to them! Banks & credit unions are dragged kicking and screaming into our space by the FED’s. This will continue to take years.  But the majority of these incumbents disdainfully believe they have built insurmountable moats and lack the vision to acquire or collaborate with us. Failing this trend, they will go the way of the dinosaur.

Image by Capri23auto from Pixabay

Lenders, have no fear!

“The business of lending to the masses” will continue to scale. Even during Covid and as the government printing presses continue to run, transaction volume is ticking up. Debt, borrowing, unexpected financial challenges, instant gratification… this DNA is in all the people of the world. Corona will end. The dollar and the Euro  “printing press” will stop. We’ll get back to living our lives. Another group of knuckleheads will be in charge. And round & round so goes the world.

What To Do? Focus on reducing overhead costs! Automate. Embrace AI. Reduce headcount while scaling transactions! Integrate with the tools already available TODAY!

Our industry has always been under constant threat; kinda like Trump. The only demographic that likes us is OUR CUSTOMERS! Unfortunately, our elite media & elected representatives do not care about our customers unless it’s election time. The bureaucrats in D.C. along with Fintech “lenders,” “Buy Now & Pay Later” embedded Apps, wage advance platforms, Fintech “leave a 15% default tip + $4.95 to accelerate your $75 loan via ACH + help us plant a tree,  remnants of Operation Choke Point, bank discontinuance issues, this recurring universal 36% APR cap theme running through State and Federal hallways and on and on… continue to attempt to destroy us. And yet here we are! $40B in fees last year! Our industry has some of the very brightest, savvy, connected, sophisticated entrepreneurs in ANY vertical! Why? Because our inventory, our product, our service IS MONEY! AND EVERYONE WANTS SOME!!

There is a multitude of solutions available NOW that will reduce your customer acquisition costs [CAC], easily & cheaply verify your applicant’s ability to pay, underwrite, process, fund, collect, and remarket. Wash, rinse, dry, repeat. That’s the cycle that guarantees your success. This is the history of mankind. [Again, read “Debt: The First 5000 Years.”]

YOUR key to success is awareness! Did you enjoy your latest Zoom Convention? Learn anything? Enjoy the after-hours bar scene like the good old days? Were you able to sort through all the B.S? I know! You need to hire a… NAME YOUR POISON! A lawyer perhaps 🙂

Here’s the skinny! The following NEW tools are what YOU NEED!

  • Customers. If you’re already in business PAY for referrals. The average CAC today is $287. Pay your current customers a referral fee IMMEDIATELY. If you’re a brick-n-mortar, offer to pay $50 cash if your current customer refers a friend who qualifies for a loan; any size loan. It’s not your referral customer’s fault their “friend” only qualified for $125!  Pay via ACH, the Cash APP, PayPal, a credit to their debit card… WHATEVER! Online Lenders MUST follow this strategy as well. A $50 funded customer IS A STEAL! Do you really want to continue to buy $5.00 leads with 2% conversion rates? And not own the customer data?
  • Instant Wage & Income Verification: IWVPro.com is your path to collaborating with a white-labeled Fintech platform enabling you to instantly in real-time verify the income claim(s) your borrower/applicant provides to you. IWVPro.com is virtually a data pipe to thousands of the largest employers in the USA & Canada. ADP, Walmart, Target, Uber, Lyft, Del Taco, Pizza Hut, Kentucky Fried Chicken, Best Buy, UPS, USPS… AND GROWING WEEKLY! It’s cheap & immediate! Will you get a “hit” 100% of the time? NO! [Just like IBV] It is a must tool! You get the wage data BEFORE it hits the bank statement. What? Your customer claims they cannot make their payment this week because they were laid off or their hours were reduced? B.S. You can determine they drove 12 hours last night for Uber, earned $180, driving a 2017 Toyota Camry license plate IOUMONEY, 7 rides covering 112 miles! You can tell them you know this WHILE YOU ARE ON THE PHONE WITH THEM! Again, visit https://iwvpro.com/ for details
  • Instant Bank Verification: the good old days of faxing bank statements are long gone. So is the need for customers to bring in their Photoshopped statements! Instant, real-time bank statement views have been around for a while. I know who does it cheaper, faster, stronger, more powerful than a locomotive… Oh, wait! Sorry, went off track. That was Superman. Just want to make certain you’re still reading my diatribe. If you are, text IBV and your name and email to 702-208-6736 and I’ll intro you to the VERY best & the brightest IBV provider in our industry. And, I PROMISE YOU this won’t cost you an extra dime! Jer
  • Artificial Intelligence for Bad Debt Negotiation: IOUUmpire.com is your connection to the white-labeled platform enabling you to settle your 30+ day “bad” paper with your customer without USING YOUR EMPLOYEES or a CALL CENTER! Your past-due customer is dead to you? Zero communications? Phone calls, direct mail, employer, text… = nada? So, your only option is to sell your paper for $.04 on the dollar? NOPE! The customer owes you $1000 and will not talk to anyone in your office? Provide them with a link to YOUR BRANDED web page. In your Dashboard, make a decision to settle with this “bad boy” for any amount you choose. In this example, let’s say $200. [$1000 sold at $.04/dollar = $40.] Your message is nice and friendly; folksy. “Dear Mr. Jones, let me make a deal with you that you can’t refuse. You don’t have to talk with a soul. Here’s your personal link. Allow me to cut you a deal and end these ceaseless calls, emails, texts…” Then, just kick back and relax. IOUUmpire’s robot – we call ours Frieda – will “work” 24/7/365 negotiating with your “dead” debtor. Your debtor logs in sees $1000 due, offers $75. Anna counters $833. Debtor counters $125. Anna counters $693. Offer, counter-offer, offer, counteroffer… “Congratulations, we have a deal, Mr. Jones! $397.00” Mr. Jones then lands on your payment page and pays in full or you allow payments. Again, visit IOUUmpire.com to learn more. 
  • Tribal Lending: Going stronger than ever! This model has become more sophisticated and has evolved substantially since the “Scott Tucker Days.” Just like the casino industry, the tribe Lending Model [TLE] has become much more acceptable to all players and we offer the best talent, resources, and IP available! There is a multitude of federally recognized Native American Indian tribes in search of additional capital to meet the overwhelming demand from borrowers across the USA. You can earn incredible returns on your money. Visit Leaning Rock Finance Consultancy for details.
  • $90 funded loans: Want a turnkey funded loan? Don’t want to deal with buying leads & underwriting? Text “Funded loan in a Box!” with your name to Jer: 702-208-6736.
  • Mobile App: Do you need a white-labeled Mobile App with your brand/logo… IOS & Android – We are live! Save thousands of dollars and months of time with our latest Phone App! It has YOUR BRAND! It’s YOUR customer for life on that phone. Expand beyond your store boundaries & a website.  Text “Mobile App” and your name to Jer at 702-208-6736 for info.
  • Payment Processing & Banking: I know them ALL and I know who can get the job done correctly with zero reserves and fair pricing! No B.S.  Text Jer at 702-208-6736
  • Online Car Title Lending: Want to offer collateralized car title loans in any state without having to engage in a face-to-face transaction? 36% APR capped states not a problem for our Team! These loans are collateralized by the title to the borrower’s automobile! Very low risk. VERY low LTV! We are live! You can run your own show or invest with us and earn a handsome ROI! [Debt/equity/blended deals available. Yes, Jer 702-208-6736
  • Finally, there are many more tools for lenders available but I’ll save you from having to continue to FOCUS. Just know that  “the business of lending to the masses”  is going nowhere but UP! [You can access many of them here where our vendors and suppliers list their services: Click “TheBusinessOfLending.com/Ressources.”

If you want to get down and deep into the weeds with me, reach out. I’m a gun for hire!

    • My Team and I offer consulting services for ALL aspects of “lending to the masses.” Whether you’re a de novo or seasoned portfolio in need of counsel, let’s explore.
    • The “Bible.” Our industry famous Course: “The Business of Lending to the Masses” currently version 74. We’ve sold over $1M of our courses to virtually EVERYONE in our industry! Want to know ALL the ins & outs of payday loans, installment loans, title loans, state-by-state licensing, Tribal Model, CAC, underwriting, onboarding, processing, software, IBV, IVW, collections, banking, Operation Choke Point, website development, call centers, artificial intelligence platforms, Fintech developments… visit TheBusinessOfLending.com for details.
    • Hourly consulting on specific initiatives.
    • Flat rate projects. De novo to M & A. and everything in between.
    • Recruiting. Do you need to hire a key executive? Reach out. I know everyone available.
    • Invest your dollars with experienced operators who are Lending today while employing all the state-of-the-art Tools mentioned here!
    • Brainstorming. Do you have an idea? An area you would like to explore? Reach out for a free exploratory conversation. TrihouseConsulting@gmail.com

The Impact of the Biden Election on Our Industry: “The Business of Lending to the Masses.”

CFSA- The Community Financial Services Association of America

The following content is a portion we ripped off from Law360 a great resource and worth every penny! Click here to read their entire Biden/CFPB article: Law360.com

Payday Lending

Under President Trump appointed Kathy Kraininger, the CFPB revoked portions of the “Payday Lending Rule” that had determined as an unfair and abusive practice to make payday and vehicle title loans without determining a borrower’s ability to repay.

This revocation was executed by regulation after the bureau “reevaluated the legal and evidentiary bases for those provisions and determined them to be insufficient.”

Debt Collection

The CFPB finalized its debt collection practices rule. It places limits on debt collectors’ attempts to reach borrowers/applicants and allows borrowers to opt-out of enabling collectors to contact debtors via e-mail, text messages, or “other media.”

The CFPB could revise the final rule before it takes effect!

Fair Lending

V.P. Biden has previously stressed that “fair lending” — whether for mortgages, small businesses, or consumer loans — is a priority of his administration. Per LAW360 experts, the CFPB “could continue the development of rules implementing ECOA, including disparate impact, accessibility for limited-English-proficiency speakers, advertising to disadvantaged groups, discrimination based on sexual orientation and gender identity, and small-business lending.”


A President Biden Administration in conjunction with the Supreme Court’s decision in Seila Law means that “consumer finance companies can expect a significant change in the focus and tenacity of the CFPB.” A President Biden will be able to set the bureau on a new path immediately.

IF the Senate remains Republican-controlled his ability to impact a substantial structural change will be minimal.

Jer Ayles: 702.208.6736 Cell






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: TrihouseConsulting@gmail.com

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…

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