THE BLOG

19
Aug

Payday Loan License for Illinois

Illinois Payday Lender License Application CheckList

  1. Application Form
  2. A copy of all organization documents is required to be filed with the Illinois Secretary of State and a copy of the filing of assumed business name with the appropriate County Clerk’s office if a sole proprietorship.
  3. ‚ÄúSupplemental Application‚ÄĚ as provided in the application packet and credit report of:
    1. the proprietor, if the applicant is an individual
    2. every partner, if the applicant is a partnership
    3. the President, Secretary, Executive and Senior Vice Presidents, Directors, and individuals owning more than 25% of the corporate stock, if the applicant is a corporation; and
    4. the manager, if the applicant is a limited liability company
  4. Most recent year-end and quarter-end financial statements, or opening statements for new corporations, completed according to Generally Accepted Accounting Principals and certified by the original signature of the applicant, President, or manager of limited liability, or partner thereof. The balance sheet must contain only business-related items and demonstrate a net equity (total assets minus total liabilities) of $30,000.
  5. Original $50,000 Surety Bond in favor of the Director of the Division of Financial Institutions, signed and sealed by the applicant and Attorney-in-Fact of the bonding company.
  6. Appointment of Attorney-in-Fact for Service of Process
  7. Photographs of both the inside and outside of the proposed location
  8. Business Plan detailing the nature, amount, and term of loans to be made and types of security that will be taken
  9. A list of all states where the applicant is licensed to issue Payday Loans. If the said license has been withdrawn, refused, canceled, or suspended in any other state, please state the specifics surrounding this event
  10. Information Form as provided in the application packet
  11. A check in the amount of $1000 forwarded to the Illinois Department of Financial and Professional Regulation to serve as a license fee. Fees are not refundable.
  12. A request for authorization of any other business to be conducted at the licensed location
    1. If requesting an Other Business Authorization, please forward a separate check to the Illinois Department of Financial and Professional Regulation in the amount of $100 per Other Business Authorization (OBA) requested. NOTE: Only one OBA is issued to a company to cover all licensed locations. This fee is non-refundable.
Example Illinois Payday Loan License

Example Illinois Payday Loan License

 

Please return the completed application and related fees to the address list below:

Illinois Department of Financial & Professional Regulation

Division of Financial Institutions

Consumer Credit Section

100 W. Randolph St. Suite 9-100

Chicago, IL 60601

 

Office Use Only

Log No.___________

Check #___________

Fee Slip__________

STATE OF ILLINOIS

DEPARTMENT OF FINANCIAL & PROFESSIONAL REGULATION

DIVISION OF FINANCIAL INSTITUTIONS

APPLICATION FOR PAYDAY LENDER LICENSE

PAYDAY LOAN REFORM ACT

Application is hereby made to the Director of Financial Institutions for a license to

engage in the business under the provisions of the Illinois Payday Loan Reform Act.

 

  1. Full Name of Applicant:_______________________________________________
  1. Proposed Licensed Location:________________________________________          

(Address)                                                                                            

(City)               (County)                      (State)            (Zip Code)

 

  1. Corporate Address:__________________________________________________________________

                                                                                          

(City)                              (State)                           (Zip Code)

 

  1. ( )                                              5.  (    )_______________________________                            

Telephone #                                              Fax #                                  

Contact Person                                           Federal Employer I.D. #

 

  1. Type of Ownership: Sole Proprietorship      , Partnership      ,  Corporation      , Limited Liability Company      ,

 

Other____________________________________________________________________

  1. If the entity is a corporation, State of Incorporation:______________________________________
  1. Is applicant licensed to issue Payday Loans in any other State or Territory of the S.? ___________________

IF Yes, provide a list of the States.

  1. At any time has the applicant entity listed above had its license cancelled or suspended in any other State or Territory of the S.? _____________________

If Yes, provide full details on a separate sheet.

  1. At any time has the applicant ever had an application for a license to issue Payday Loans withdrawn or refused in any other State or Territory of the S.? ________________

If Yes, provide full details on a separate sheet.                              

If the entity is a foreign corporation, the date, and number of Charter in Illinois:

_________________                               

Date                            Number

Page 1 of 2

14.______  The Proposed site is not within one mile of a horse race track subject to the Illinois Horse Racing Act of 1975, within one mile of a facility at which gambling is conducted under the Riverboat Gambling Act, within one mile of the location at which a riverboat subject to the Riverboat Gambling Act docks, or within one mile of any State of Illinois or the United States military base or naval installation.

OR

______  The location was already in existence as a payday loan business as of June 1, 2005.

  1. Does the applicant/entity maintain any other licenses issued by the Department of

Financial and Professional Regulation? ____________

If YES, please list type of license and license number:                              

  1. Describe any other business that will be conducted at this location other than the business of making loans under the Payday Loan Reform Act.

                                                                                                                                     under penalties of perjury, I declare that I have examined the application and all supporting documents submitted by me in connection therewith, and to the best of my knowledge, they are true, correct, and complete.

                                         __________________                           

(Signature of Applicant)                 Date________

STATE OF ILLINOIS

DEPARTMENT OF FINANCIAL & PROFESSIONAL REGULATION

DIVISION OF FINANCIAL INSTITUTIONS

SUPPLEMENTAL APPLICATION PAYDAY LENDER LICENSE

 

All answers must be TYPED or legibly PRINTED.  All questions must be answered.

 

  1. Individual’s Name:_______________________________________________________________                                                               

(First)                   (Middle)          (Last)

 

  1. Corporate Title:_____________________________________                                    

 

  1. Percentage of Ownership:_____________          

 

  1. Date of Birth:_______________________                    

 

  1. Social Security Number:__________________________________________________________                             

 

  1. Business Address:________________________________________________________________                                                               

 

  1. Resident Address:________________________________________________________________                                                               

 

  1. Telephone Number:________________________________________________________________                                                               

 

  1. Business Experience for past ten (10) years in descending chronological

Order:  (A copy of a resume for the same period of time may be substituted

to satisfy this requirement.)

   Years______________________________________________________________________________                                                                             

 

From     To     Company Name:_________________________________________________________                                                       

 

Company Address:______________________________________________________________________                                                                    

 

Position Held:________________________________________________________________________                                                                      

 

Principal Duties:_____________________________________________________________________                                                                   

 

 

   Years______________________________________________________________________________                                                                             

 

From     To     Company Name:_________________________________________________________                                                       

 

Company Address:______________________________________________________________________                                                                    

 

Position Held:________________________________________________________________________

 

Principal Duties:_____________________________________________________________________

 

 

   Years______________________________________________________________________________

 

From     To     Company Name:_________________________________________________________

 

Company Address:______________________________________________________________________

 

Position Held:________________________________________________________________________

 

Principal Duties:_____________________________________________________________________

 

  1. In the past 10 years, have you ever been convicted of a felony?

 

Yes                              No_____    

 

If yes, provide on a separate sheet full details, including a summary, the

the court, the presiding judge(s), and the title and document number.

  1. In the past 10 years, have you been a party to any material litigation?

Yes                                   No_____

If yes, provide on a separate sheet full details, including a summary, the

court, presiding judge(s) and the title and document number.

Under penalties of perjury, I declare that I have examined the application and all supporting documents submitted by me in connection therwith, and to the best of my knowledge they are true, correct and complete.

                                         __________________                           

(Signature of Applicant)                  Date

Page 2 of 2

STATE OF ILLINOIS

DEPARTMENT OF Financial & PROFESSIONAL REGULATION

DIVISION OF FINANCIAL INSTITUTIONS

LICENSEE BOND

Payday Loan Reform Act 

KNOW ALL MEN BY THESE PRESENTS, That_____________________________________________________________

Corporate or Company Name

 

___________________________________________________________________________________

Street Address                                   City/State

 

and,________________________________________________________________________________

as surety, are held and firmly bound unto the Division of Financial Institutions, for the use of the State and of any person or persons who may have a cause of action against the obligors of this instrument, under the provisions of the Act hereinafter described, in the penal sum of                                                            for the period from this date_________________________ to December 31, ________, for the payment of which, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

Witness our hands and seals this               day of                     , A.D.______

The condition of the above obligation is such that the above                          

___________________________________________________________________________________

Corporate or Company Name has applied for a license for the term ending December 31, 20____, to transact the business of making loans in accordance with the provisions of the Illinois Payday Loan Reform Act.

 

Now, if the said______________________________________________________________________

Corporate or Company Name

 

shall, upon issuance of said license as aforesaid, faithfully conform to and abide by each and every provision of said Act and of all rules, regulations and directions lawfully made by the Director of Financial Institutions, and will pay to the State and to any person or persons from said obligors, under and by virtue of the provisions of said Act, then this obligation to be void, otherwise to remain in full force and effect.

___________________________________

Corporate or Company Name

 

By_________________________________

President, Owner or Partner

 

By_________________________________

Secretary, Owner or Partner

 

 __________________________________

Surety or Bonding Company

 

By_________________________________

Illinois Attorney-in-Fact

 

(Attach Power of Attorney)

State of Illinois

Department of Financial & PROFESSIONAL REGULATION

DIVISION OF FINANCIAL INSTITUTIONS   appointment of attorney-in-fact for service of process know all men by these presents:

that_____________________________________________________________________________________________

Corporate or Company Name

 

_________________________________________________________________________________________________

Street                                City

 

                          ____                      does hereby appoint the

County                      State

 

incumbent Director of the Division of Financial Institutions of the State of Illinois and his/her successors in office, or any official who shall hereafter be charged with the administration of the Payday Loan Reform Act, its attorney-in-fact upon whom all processes of law against it arising out of any transaction under the Payday Loan Reform Act may be served.  The appointment of the Director of Financial Institutions as attorney-in-fact is conditional upon the issuing of a license to conduct a business of making loans under the Payday Loan Reform Act and in the event that a license is not granted, this appointment shall remain in full force and effect and may not be revoked except by consent of the Director of Financial Institutions.  In the event that the license of said applicant is revoked, surrendered or otherwise terminated, the appointment of the Director of Financial Institutions as attorney-in-fact to accept service of process shall continue until such time as all matters arising out of the conduct of said licensee’s business in this state shall have been concluded.

 

IN WITNESS WHEREOF, the applicant has set his hand and seal in the City of                                            State of                                 ,

 

On                                                                             20    

(CORPORATE SEAL)    By__________________________________

(President, Owner, Partner)

 

By__________________________________

(President, Owner, Partner)

 

                 

CORP. FILE NUMBER                                          

IF OUT OF STATE

                                

 

Subscribed and sworn to before me this           day of                       20_____

 

Notary Public                        My Commission Expires_______________________

 

 

NOTARY SEAL

 

 

 

 

 

 

INFORMATION FORM

 

 

 

  1. Name, Title, Percent of Stock Ownership and Resident Address of Every officer

of the Licensed Entity.

 

  1. _________________________________________________________________________

(Name)                   (Title)                  (Percent of Stock)

 

_________________________________________________________________________  

(Address)                        (City)         (State)               (Zip Code)

 

  1. _________________________________________________________________________

(Name)                   (Title)                  (Percent of Stock)

 

_________________________________________________________________________                                                                     

(Address)                        (City)         (State)               (Zip Code)

 

  1. _________________________________________________________________________                                                                             

(Name)                   (Title)                  (Percent of Stock)

 

_________________________________________________________________________                                                                             

(Address)                        (City)         (State)               (Zip Code)

 

(If more space is required attach a separate sheet)

 

  1. Name, Title, Percentage of Ownership and Resident Address of Each Director of

the Licensed Entity.

 

  1. _________________________________________________________________________                                                                             

(Name)                   (Title)                  (Percent of Stock)

 

_________________________________________________________________________                                                                             

(Address)                        (City)         (State)               (Zip Code)

 

  1. _________________________________________________________________________                                            

(Name)                   (Title)                  (Percent of Stock)

 

_________________________________________________________________________                                                                           

(Address)                        (City)         (State)               (Zip Code)

 

  1. _________________________________________________________________________

(Name)                   (Title)                  (Percent of Stock)

 

_________________________________________________________________________                                                                           

(Address)                        (City)         (State)               (Zip Code)

 

(If more space is required attach a separate sheet)

 

III.  Name, Percent of Ownership and Resident Address of Each Stockholder Owning

10% or More of Capital Stock or Any Owner/Partner of the Licensed Entity who

is Not Listed Above.

 

  1. _________________________________________________________________________                                                                             

(Name)                                    (Percent of Stock/Ownership)

 

_________________________________________________________________________                                                                            

(Address)                        (City)         (State)               (Zip Code)

 

  1. _________________________________________________________________________

(Name)                                    (Percent of Stock/Ownership)

 

_________________________________________________________________________                                                                           

(Address)                        (City)         (State)               (Zip Code)

 

  1. _________________________________________________________________________                                                                             

(Name)                                    (Percent of Stock/Ownership)

 

_________________________________________________________________________                                                                            

(Address)                        (City)         (State)               (Zip Code)

 

(If more space is required attach a separate sheet)

 

 

The Percentage of Ownership from Section I, II and III Must Total 100%

 

 

01
Aug

What is CAC: Customer Acquisition Costs 101 for Lenders

For consumer loan companies, what is CAC?

Customer acquisition cost, or CAC, is the amount of money spent on sales and marketing required to fund a new customer’s loan. It is calculated by summing a consumer lender’s total sales, and marketing spend and dividing it by the number of new customers acquired.

Lenders can calculate CAC for a given time period or all time and is helpful to compare the effectiveness of different marketing tactics and strategies.

Of course, a lower CAC is better, as it suggests your marketing and sales teams are effective at targeting your customer avatar efficiently.

What is the purpose of customer acquisition?

The purpose of customer acquisition is to find a repeatable, methodical way of attracting customers to your lending business. Your goal is to increase your “book; your portfolio. Consumers by the millions are applying for small-dollar loans daily. You’ve got to get more than your share! You cannot wait for borrowers to naturally come to you.

Your goal is to create an efficient,¬† systematic, ongoing strategy to acquire new borrowers, service existing borrowers, and grow your “money on the street” in order to scale loan fees generated.

 

08
Jul

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: ‚ÄúHow To Start/Improve a Consumer Loan Business.‚ÄĚ

  • 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‚Ķ
  • Tribe model [‚Äúsovereign nation‚ÄĚ]
  • 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 TrihouseConsulting@gmail.com for a 100% refund.]

If you‚Äôre 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‚Ķ Our ‚ÄúBible‚ÄĚ 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 ‚ÄúBible‚ÄĚ every 3 months.

07
Jul

Subprime Loan Originations Expected to Soar After Q3

A new Bank Rate study is out! [Link below.]

 

“As the job market cools down and inflation heats up, a new survey from Bankrate indicates that side hustles are a necessity for a growing number of Americans. Former top motivations for side hustling, like paying off debt and saving, have given way to a more pressing need: making ends meet.”

 

‚ÄúUnfortunately, due to high inflation and other financial burdens, more side hustlers are working a side job just to make ends meet,‚ÄĚ said Ted Rossman, Senior Industry Analyst for Bankrate. ‚ÄúInstead of using this income to boost savings, knock out debt or pay for a vacation, there has been a big increase in people who simply need these funds just to pay for everyday living expenses.‚ÄĚ

 

“41% of U.S. adults who have a side job in 2022 need the extra income to pay for everyday living expenses as compared to 31%in 2019 (the last year of polling), according to a new survey from Bankrate.com.Fewer are putting this money towards savings(17% vs. 24%in 2019) and using it for discretionary spending (26% vs. 36%in 2019).”

 

Bottom Line? The near-prime will soon be the subprime. Demand for loans is trending up and will continue to scale rapidly. Opportunities abound for Lenders!

 

ARE YOU EMPLOYING THE BEST-OF-BREED CUSTOMER ACQUISITION, UNDERWRITING, FUNDING… RESOURCES & PLATFORMS RAPIDLY ENTERING OUR INDUSTRY TODAY? DON’T KNOW WHERE TO BEGIN? LOOK NO FURTHER! YOUR ANSWERS ARE HERE: LENDER RESOURCES

 

Thanks for being a loyal email subscriber. I appreciate hearing from you. Let me know if you ever have any questions. And, you can click on the image to schedule a call!


27
Jun

WANTED: Portfolio/Platform Acquisition

WANTED: Portfolio/Platform Acquisition: We continue to aggressively pursue $10MM+ collateralized loan [vehicle title] portfolios! Reward! Email Jer TrihouseConsulting@gmail.com

 

16
May

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!

Perspective

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, ‚Äú…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.)‚ÄĚ‚ÄďEconomists Robert DeYoung, Ronald Mann, Donald Morgan, and Michael Strain, Federal Reserve Bank of NewYork ¬†


WRONG!
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‚Äôs 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

Limited time "inflation Finder Discount!

500+ page Course: ‚ÄúHow to Loan Money to the Masses Profitably.‚ÄĚ Immediate PDF delivered to your Inbox.

How to start a payday loan business, an installment loan business, a car title loan business...
14
Apr

Look Out! Subprime Lenders Facing Turbulent Times

The Future of the Small-Dollar Micro-Lending Industry


We define small-dollar micro-lending products as relatively small loan principals of $50 to $5000 for seven days to 48 months having APRs of 30% to 1500% or more. These products include payday loans, car title loans, installment loans, line-of-credit loans, pawn, rent-to-own and similar products not yet envisioned.


Sub-prime, small-dollar micro-lending products are a normal market response to demand for short-term liquidity from borrowers with jobs but little access to other sources of funds. These financially challenged consumers lack access to credit cards, banks, and credit union funding. Their friends and family cannot help because it’s not only embarrassing to ask, but their peers are in similar circumstances.


Lenders must create a business model that:

  • Will survive and thrive under the current wave of competition.
  • Gain access to a sustainable cost of capital
  • Can compete with alternative loan products entering the subprime market weekly [buy-now-pay-later, early access to wages, Dave.com look-alikes, collateralized loan products‚Ķ]
  • Can cope with new and existing regulations.
  • Can maintain bank relationships.
  • Can integrate with consumer credit-building opportunity platforms.
  • Anticipate consumer desires and their preferred debt vehicles
  • How and where consumers want to access loans
  • How to structure loan products

The business of lending to the masses.

Demand for subprime, micro-lending loan products continues unabated. As the middle class expands and high FICO (U.S.) consumers debase and decline into lower credit tranches, the demographic for subprime loan products will continue to scale! Study after study consistently concludes that consumers need access to quick, no-hassle, small-dollar loans to meet temporary financial emergencies.


Today’s inflationary environment drives demand for small-dollar loans as well.


Defaults: Price increases this year!

gas: +49%
used cars: +35%
hotel room: +29%
airline tickets: +24%
car rentals: +23%
bacon: +18%
oranges: +18%
furniture: +17%
peanut butter: +16%
crackers: +16%
steak: +16%
suits: +15%
butter: +14%
milk: +13%
lamps: +12%
coffee: +11%
cereal: +10%


My point? Defaults will soon prove to be an issue for lenders. Lenders need tools that provide instant, real-time financial data about their borrowers and applicants. Reach out immediately if you do not have access to the following instant alerts via your loan management platform:


  • Your customer gets paid
  • Your customer receives an IRS check
  • Your customer closes their bank account
  • Your customer’s bank account is negative
  • Your customer receives a loan from a competitor
  • Your customer’s job situation declines
  • Customer payment reminders
  • Ping nearly 50,000 financial institutions, including Cash App, money transfer apps, crypto apps‚Ķ
  • And much, much more‚Ķ

Why does this matter? Inflation is rising dramatically. Defaults will soar. Demand for loan products is scaling. He who can qualify, approve and fund a loan fast will win BIG in this new environment. The tool is here today. To learn more: TrihouseConsulting@gmail.com


The Internet and mobile technology continue to impact the small-dollar micro-lending industry profoundly. Consumers residing in states and provinces that do not allow payday loan products to exist routinely obtain them online. Imagine a web that isn’t focused around a computer but is everywhere, on every device, every person, accessible at every location. It’s not a place you go; it’s a layer behind everything you do.


The phone! Enough said! That’s where the action is. EVERYONE does business on their phone today!


Email is less and less likely to be opened by your customer on their desktop or laptop computers. Email “opens” in mobile devices now dominate. This is huge. Micro-lenders who are slow to adapt to this revolutionary reality will experience reductions in loan portfolio size and fail to achieve velocity.


Regulation will continue to dominate the small-dollar micro-lending landscape for the foreseeable future. In every country small-dollar micro-lending products enter the fray, they meet resistance from competitors, including banks and credit unions, so-called consumer protectionists, credit card companies, legislators, and competing Fintech platforms. Many licensing models, including choice-of-law, sovereign nation (tribe), offshore, state-by-state, and province-by-province, continue to “muddy the waters.”


On a local level, more than a few cities, townships, and counties are capping or restricting the number of payday loan financial service centers allowed. Brick-n-mortar operators must continually meet with and educate local politicians and city council members regarding their business and customers. Remind these politicians that our industry pays taxes, employs thousands of their constituents, contributes to the community, and pays leases and property taxes.


Regarding the CFPB (U.S),  we have personally met with the head of the CFPB and various Asst. Directors of the CFPB. Our takeaway is that they are focused on transparency and disclosure of all fees rather than some Machiavellian legislative initiative.


International entry into small-dollar micro-lending continues. Payday loans, installment loans, car title loans, line=of-credit loans, etc., are offered in the U.S., Canada, the U.K., Australia, Poland, Latvia, Mexico, Latin America, South Africa, and more. Interestingly, companies with international small-dollar micro-lending success are entering the U.S. despite the perceived regulatory climate.


Payment Processing may be the most dynamic area today for the small-dollar loan industry today. Crypto and the lightning network are already upending our sector. Signup for our free monthly Newsletter for breaking news about vendors offering state-of-the-art platforms that eliminate chargebacks, ACH fees, and deliver instant funding for pennies.


Bottom line: This is the time to be a lender to the masses. Opportunity is the word of the day. For those of us willing and able to envision what new loan products and delivery systems should look like, the “world is our oyster.”

21
Mar

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! ūüôĄ 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:

10
Feb

How-to: Installment Loans for the Subprime Demographic

Example Nevada Installment Loans

There is a national trend by regulators to mandate a 36% APR [Annual Percentage Rate] cap throughout the USA.


Many national Lenders have been transitioning to a multitude of financial loan products in an effort to continue to serve subprime borrowers while still achieving superior ROI. Witness Avant, CURO, WRLD, ENVA… You only need to refer to their latest earnings call to comprehend the extent of this transition away from single-payment products. Enova’s progeny is CASHNETUSA.com back in the late ’90s. At the time, they offered singularly payday loans having 400% – 700% APR payday loans. As per their latest Q4 earnings call, these single payment [payday loan] products made up a mere 2% of loan originations. Obviously, they see the writing on the wall.


DO YOU?


Nevada, in addition to approximately 25 other States, has Implemented a state database. This demonstrates a death knell for the single payment product!


Luckily, we Lenders have time to evolve our Loan product offerings AND, more importantly, integrate with Fintech platforms that enable us to reduce headcount, and employ artificial intelligence [AI] to acquire, underwrite, service & collect funds without the aid of human intervention; thus reducing our G & A expenses. [Examples: IOUUmpire.com for 24/7/365 debt negotiation & IWVPro.com for wages & income verification.]


DO YOU WANT TO SCALE YOUR BUSINESS?


Grab a copy of our latest version of “How to Lend Money to the Masses Profitably.” 500+ pages of real-world, how-to start, scale, improve and succeed lending cash to the 50%+ of USA households who are FAST running out of money and cannot access $500 cash in order to solve a sudden financial emergency. [Fix their car, keep the lights on, pay for a prescription, make payroll for their construction crew until paid by the homeowner…] For a mere $297.00, you can download our 500+ page PDF and enter/improve/scale a consumer loan business! The business of lending to the Masses. The oldest profession ūüôā


How to Start a Payday Loan Business

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