🤑All Talk, No Cash: Why Trade Associations Are Like That Friend Who ‘Forgets’ Their Wallet!💔

Alternative Financial Services Industry Fights CFPB

All right, let’s break this down in simpler terms. You’re in the small-dollar lending business, and there’s some legal stuff going on that could affect you. The CFPB, or Consumer Financial Protection Bureau, made a rule about small business lending. Some trade associations are telling the CFPB to hit the pause button on this rule because they think it’s creating unfair conditions for different lenders. They’ve written a letter to the CFPB’s head honcho, Director Chopra, to sort this out.

So, what’s the big deal?

1. Court Case and Preliminary Injunction: A court in Texas put a temporary hold on the rule but only for specific people who complained (plaintiffs). This means some lenders have to follow the rules, and others don’t. That’s confusing and not fair, right?

2. Trade Associations Step In**: A bunch of groups like the American Financial Services Association and the Mortgage Bankers Association, who represent lenders like you, are saying, “Hey, this is making it tough for us to know what to do. Can we please sort this out?”

3. Effective Dates and Compliance: The rule was supposed to come into play on specific dates, but now, with the court action and all, it’s a mess. The trade associations say, “Let’s delay this rule until we figure out all the legal stuff, which might not be until July 2024.”

4. What Can Happen Next: The CFPB has a couple of options. They could formally propose to delay the rule and allow people to give their thoughts for 30 days. Or, they could change their approach in the court case to apply the hold on the rule for everyone, not just the folks who complained.

5. Efficiency and Litigation: The trade associations think that if the CFPB doesn’t make things clear, more people will go to court, and that’s just a waste of time and money for everyone.

All Show, No Go: Trade Associations Do the Macarena While Plaintiffs Tango with CFPB!

Whether trade associations should help pay the plaintiffs’ legal fees in a case fighting against the CFPB’s regulations is nuanced. From a legal and strategic perspective, there are pros and cons to consider:


1. Strength in Numbers: Combining resources could help create a more vigorous fight against the CFPB, potentially making the injunction more likely to apply to a broader group, not just the initial plaintiffs.

2. Unified Message: By financially supporting the plaintiffs, the trade associations could help ensure that the legal arguments are aligned with their members’ best interests.

3. Public Relations: It might create positive PR for the trade associations, as they could publicly argue that they are fighting against confusing or unfair regulation that affects their members.

4. Resource Pooling: Legal battles are expensive. They can help sustain a lengthy fight if needed by contributing to the legal fees.

5. Broader Impact: A win in court against the CFPB could benefit all members of the trade associations, not just those who are plaintiffs. It could be seen as an investment in the broader business environment for their industry.


1. Cost: Legal battles can be costly and time-consuming. This would be an additional cost for trade associations and, by extension, their members.

2. Risk of Loss: If the case is lost, it could set a negative precedent for the industry, and the resources spent on legal fees would be a sunk cost.

3. Divergent Interests: While the plaintiffs and the trade associations may have similar objectives, they might not have the same goals. Financially supporting the plaintiffs could limit the trade associations’ control over the litigation strategy.

4. Member Backlash: Some members might not agree with the legal action and could resent their fees being used in this manner.

5. Regulatory Scrutiny: Actively fighting against a regulatory agency could attract more scrutiny to the trade associations and their members, potentially leading to stricter regulations in the future.

So, would it have been smart? It depends on a variety of factors, including how aligned the trade associations are with the plaintiffs, the potential benefits vs. the risks, and the appetite for a potentially lengthy and expensive legal battle.

So, what does this mean for you, my lender friend? Keep an eye on this situation. Depending on how the CFPB and the courts decide, you might have more time to adapt to the new rules, or you may need to make quick changes to how you do business.


2024-Navigating the Texas Credit Access Business CAB & CSO: A Comprehensive Guide for CABs, CSOs, 3rd-Party Lenders, Regulators & Consumers

Texas CAB Loan Model

The personal lending landscape can be complex, filled with various regulations and guidelines that lenders must navigate.

Texas, known for its robust economic environment, is no exception.

One option available to lenders in Texas is to operate under the Credit Access Business (CAB) / Credit Services Organization (CSO) model with a 3rd-party lender.

This blog post aims to provide an overview of the CAB/CSO model, how it works, and the benefits it offers lenders and consumers in Texas.

Texas’s Credit Access Business (CAB, often referred to as a CSO) model, presents a highly attractive and lucrative venture for businesses seeking to enter or expand in the consumer lending industry.

With a streamlined pathway to regulatory compliance and a specialized role that mitigates various risks, the model offers strong foundational advantages.

The model is particularly lucrative due to the ability to charge high Annual Percentage Rates (APRs), often reaching the 400%+ range, significantly boosting profitability.

Additionally, the model provides CABs a competitive edge through niche specialization and agility in responding to market demands.

As intermediaries, CABs are uniquely positioned to offer services from customer acquisition to loan origination to servicing, creating an ecosystem that benefits the business and caters to diverse consumer needs.

In summary, the Texas CAB Model delivers a compelling business case featuring simplified regulatory processes, significant revenue generation through high APRs, and unique market advantages, setting up Credit Access Businesses for considerable business success.

What is the Texas Credit Access Business (CAB) Model?

The CAB Model is a framework for businesses to offer short-term, subprime personal loans.

In this model, a licensed Credit Access Business [CAB] is an intermediary between borrowers and a 3rd-Party Lender. 

The CAB takes care of loan originations, underwriting, customer service, and the collection of payments, but it does not directly fund the loan. Instead, a third-party lender funds the loan. The third-party Lender is not required to secure a license. 

Texas CAB: How Does It Work?

1. Customer Application: A borrower applies for a loan via the CAB’s website/storefront.

2. Third-Party Approval: The application is reviewed, and if approved, the loan is funded by the third-party Lender.

3. Loan Servicing: The CAB takes responsibility for the loan servicing, including communication, collection, and compliance.

4. Profit Sharing: The CAB and the third-party Lender share the profits based on an agreed-upon structure. [Discuss details with me.]

Licensing and Compliance

Before operating as a CAB, a business must obtain a license from the Office of Consumer Credit Commissioner (OCCC) in Texas. It’s essential to adhere to the guidelines and laws specified by the Texas State OCCC.

For 3rd-Party Lenders

Advantages for 3rd-Party Lenders in the Texas CAB Model: A Deeper Dive

The Texas Credit Access Business (CAB) model, which has seen increased adoption in the State of Texas, has a unique structure that involves a third-party lender providing the actual loan capital. This lending model has several advantages for the 3rd-party Lender, and it’s worth diving deeper into what makes this framework particularly enticing for lenders providing capital to a Texas CAB.

1. Superior Return on Investment [ROI]:

By operating under the Texas CAB model, 3rd-Party Lenders can achieve superior returns on their capital. 3rd-Party lender fees are collected by the CAB from consumers on behalf of the 3rd-Party Lender, thereby achieving 10% – 15%+ on their capital [Typically collateralized 1:1 by the Texas CAB! I have details.] 

2. Market Expansion: Geographic and Market Expansion

By collaborating with a CAB, a 3rd-party lender can quickly expand its market reach within Texas without establishing a physical presence in the state. This quick-to-market approach allows for agile responses to market trends and consumer needs, creating more opportunities for revenue generation.

3. Lower Operational Overhead

In the Texas CAB model, the Credit Access Business oversees the operational aspects such as customer acquisition, loan application processing, underwriting, disbursement, and collections.

This means that the 3rd-party Lender can invest less in these areas, thus saving on operational costs.

They also avoid the need to maintain a customer-facing operation in Texas, which can be significant in terms of financial outlay and operational complexity.

4. No Need for a Separate License

One of the most immediate benefits for the 3rd-Party Lender is the regulatory relief that comes with not requiring a separate loan license from the Texas Office of Consumer Credit Commissioner (OCCC).

This is a significant advantage because obtaining and maintaining a license can be time-consuming and costly and subject lenders to audits.

The CAB takes on the responsibility of licensing and compliance, allowing the 3rd-party Lender to focus more on their core business operations.

5. Competitive Diversification

Being a 3rd-party lender to a Texas CAB allows a lender to diversify its product offerings.

This can be particularly valuable for lenders specializing in other types of loans and looking to diversify their portfolios without incurring high setup costs and compliance burdens.

Takeaways for 3rd-Party Lenders: The Texas CAB model with 3rd-party lending offers several compelling advantages for lenders who provide capital to Credit Access Businesses.

From reduced regulatory burdens to lower operational costs, risk mitigation, and favorable profit-sharing structures, the model can be an excellent avenue for 3rd-party lenders seeking to enter or expand in the Texas personal loan market.

Amplifying the Upside: Benefits for Credit Access Businesses (CABs) in Texas

For CABs

Operating as a Credit Access Business (CAB) in Texas, in partnership with a third-party lender, has several unique advantages. The CAB model offers numerous benefits for CABs’s from a specialized role in the lending ecosystem to specific profit opportunities.

Let’s delve deeper into why becoming a CAB in Texas can be a lucrative and strategic business decision.

Streamlined Regulatory Compliance & Facilitated Licensing

CABs are required to obtain a license from the Texas Office of Consumer Credit Commissioner (OCCC).

Once they get this license, they can act as an intermediary between borrowers and third-party lenders.

The licensing process for CABs is generally more streamlined than the stringent criteria that traditional lenders often have to meet.

Regulatory Expertise

As a specialized business, CABs often build up a wealth of expertise in navigating local and state regulations.

This makes compliance less cumbersome and allows the company to focus on growth and profitability. 

Risk Mitigation

Diverse Portfolio

By collaborating with multiple third-party lenders, CABs can diversify their loan types, spreading their risk.

The impact of defaults on any single type of loan is thus reduced. 

[NOTE: CABs who fail to collaborate with multiple 3rd-Party lenders for redundancy place their businesses at risk! Think of this strategy as you should for banking and payment processing!!]

Revenue Generation

Robust Revenue Potential via High APRs

Contrary to the misconception that the CAB model operates on thin margins, CABs in Texas often charge Annual Percentage Rates (APRs), reaching as high as 400%+.

This provides a significant revenue stream for CABs and, thus, a robust financial incentive to originate more loans.

Scalability and Profit

With such high APRs, the CAB model becomes exponentially profitable as the volume of originated loans increases.

Unlike traditional low-margin models, the CAB system in Texas allows for a more lucrative scaling strategy, where every additional loan originated adds significantly to the bottom line.

Impact on Revenue

Given the high APRs, even a modest volume of loans can generate substantial revenue >profits.

This aspect makes the business model extremely attractive for those who wish to enter the lending space without the overhead and risks associated with more traditional lending models.

Multiple Revenue Streams

CABs have multiple ways of generating income, including fees for providing ancillary services to borrowers and profit-sharing arrangements with third-party lenders. This results in a more stable and diversified revenue base.

Competitive Edge

Niche Specialization

CABs specialize in certain types of loans (e.g., short-term payday loans, installment loans, collateralized car title loans…) that traditional lenders don’t offer.

This creates a niche market where CABs can become the go-to option for borrowers.

Agility and Adaptability

CABs are more agile compared to traditional financial institutions.

They can quickly adapt to market changes, implement new technologies, and tailor their services to meet consumer demands, giving them a competitive edge.

Enhanced Customer Relationships

One-Stop Service

As an intermediary, CABs offer a one-stop service for borrowers, handling everything from application to loan servicing and even debt collection. This convenience can attract more customers and improve customer retention.

Local Market Expertise

Operating within Texas yields Texas CABs a strong understanding of local market needs and consumer behaviors, allowing them to tailor their products and services more effectively.

Takeaway for CABs

The Texas Credit Access Business model offers an array of benefits that can make it an appealing venture for businesses interested in the lending space.

From a more straightforward path to regulatory compliance and risk mitigation to diverse avenues for revenue generation and a competitive edge, the model sets up CABs for significant business advantages.

The Profit-Sharing Dynamics Between 3rd-Party Lenders and CABs in Texas

Texas’s Credit Access Business (CAB) model offers a unique and lucrative profit-sharing arrangement that mutually benefits both the CAB and the 3rd-party Lender.

This framework allows 3rd-party lenders to leverage the expertise and customer base of CABs while CABs benefit from the capital these lenders provide.

Let’s delve into how the profit-sharing mechanism typically works, focusing mainly on the 9.99% A, additional fees like NSF (Non-Sufficient Funds), and late fees that 3rd-party lenders may earn.

Risk and Reward Allocation

APR Distribution

In a typical arrangement, the 3rd-party Lender earns a 9.99% APR on the funds loaned to the consumer.

This APR is distinct from the higher APRs associated with CABs and serves as a stable, relatively low-risk revenue stream for the Lender.

Additional Fee Participation

In addition to the 9.99% APR, 3rd-party lenders often also share in other fees, such as NSF and late fees.

These fees can significantly boost the Lender’s profitability, especially when considered across a high volume of loans.

Revenue Collection by CABs

Efficiency and Expertise

CABs are responsible for collecting both the principal and interest payment and any NSF/late fees on behalf of the 3rd-party Lender.

The CAB’s established customer service and debt collection infrastructure ensures that these payments are collected efficiently, minimizing defaults and maximizing profitability.

Dual Benefit

While CABs do the legwork of collecting the fees, they are also vested in ensuring the collection process is efficient.

An effective collection process improves the CAB’s bottom line and incentivizes the 3rd-party Lender to continue partnering with the CAB.

Mutual Advantages in Profit-Sharing

Stable Revenue for 3rd-Party Lenders

The 9.99% APR and the additional fees offer 3rd-party lenders a stable and predictable income, which can be especially appealing given that CABs shoulder much of the operational workload and customer interaction.

Increased Capital for CABs

For CABs, the benefit lies in having access to the capital provided by 3rd-party lenders. [Reach out to for details.]

This allows CABs to originate more loans and thus generate more revenue through their high APRs and service fees.

Enhanced Business Relationships

This profit-sharing arrangement fosters a healthy, long-term business relationship between 3rd-party lenders and CABs. It creates a symbiotic relationship where both entities profit while distributing operational responsibilities and risks.

The profit-sharing arrangement in the Texas CAB model provides a win-win scenario for both the CAB and the 3rd-party Lender.

With a reasonable APR of 9.99% and a share in additional fees like NSF and late fees, 3rd-party lenders enjoy a lucrative, low-risk revenue stream. 

Meanwhile, CABs benefit from the operational efficiencies of this model and the ability to access more capital to originate loans.

Both parties, therefore, have strong incentives to maintain this collaborative and profitable relationship. [See me for details.]

For Consumers

Unpacking the Benefits for Consumers in the Texas CAB Model

The Credit Access Business (CAB) model in Texas provides many benefits for consumers.

Understanding these benefits can offer valuable insights into how this lending model positively impacts borrowers. Let’s dive deeper into each of these advantages:

Increased Access to Diverse Loan Products

Variety of Options

The CAB model often leads to a more diverse marketplace for loans.

Since the Credit Access Business acts as an intermediary and facilitator for multiple third-party lenders, borrowers get a more comprehensive array of loan products to choose from.

Whether you need a short-term loan to cover an emergency expense or a long-term loan for home improvement, the chances are high that you’ll find a loan product that meets your needs.

Catering to Different Credit Profiles

Because CABs may work with various third-party lenders, a broader spectrum of risk profiles can often be accommodated.

Borrowers with less-than-perfect credit histories will find loan products suited to their financial situations.

Streamlined Application Process

The CAB will offer a streamlined loan application process, where a single application can be used to apply for multiple loan products.

This saves time for consumers and increases the likelihood of finding a loan that best suits their financial needs.

Transparency and Consumer Protection

Regulatory Adherence

The CAB model operates under the purview of Texas state laws, which are crafted to protect consumers.

CABs must be licensed and regulated by the Office of Consumer Credit Commissioner (OCCC).

This ensures a certain level of compliance and standardization that safeguards consumers against fraudulent practices.

Clear Terms and Conditions

Another benefit of the CAB Model is its level of transparency to borrowers.

CABs must provide clear, concise, and transparent loan agreements [Try getting THAT from your local Stagecoach bank or credit union!], making it easier for borrowers to understand the terms and conditions, including interest rates, fees, and repayment options. 

Informed Decision-Making

With transparent terms and the safety of state regulations, consumers can make more informed decisions.

Knowing the details upfront allows borrowers to more accurately assess the cost and affordability of a loan, reducing the risk of taking on unmanageable debt.

Enhanced Customer Service

Specialized Expertise

Since CABs specialize in subprime loan acquisition, underwriting, and servicing, their expertise in these areas is often higher than that of traditional lenders and banks.

This can translate to a smoother, more efficient customer experience from application to loan closure.

Personalized Service

Many CABs offer personalized loan servicing that includes prompt and proactive customer support.

Whether through easily accessible customer service lines, chat support, or in-person consultations, the focus is often on ensuring the consumer feels supported throughout the loan lifecycle.

Educational Resources

To add value to their services, some CABs also offer educational resources and tools to help borrowers understand loan management, budgeting, and financial planning.

This fosters a better customer relationship and empowers borrowers to make sound financial decisions.

Conclusion for Borrowers

For borrowers in Texas, the CAB model with third-party lending brings forth increased accessibility to a variety of loan products, enhanced transparency, and superior customer service.

These advantages contribute to a more consumer-friendly loan marketplace, enabling borrowers to manage their financial needs better.

In Closing 

The Credit Access Business (CAB) model in Texas presents a compelling business opportunity in the lending arena for 3rd-Party lenders, consumers, regulators, and CABs. 

Its distinct combination of robust revenue potential attributed to high APRs to offset the risks of lending to subprime borrowers having nowhere else to turn when faced with a sudden financial emergency, a streamlined approach to regulatory compliance, and its benefits to consumers make it attractive. 

Add to this the inherent risk mitigation strategies and a keen understanding of local market dynamics, and it’s clear why the Texas CAB Model holds such allure.

For businesses aiming to capitalize on the lending space, the CAB model in Texas establishes a pathway to substantial profitability and superior ROI.

Want to be a cab?

A 3rd-Party Lender?

Do you know just enough to be dangerous?

Do you need an in-depth understanding of how the Texas CAB/CSO consumer loan model works?

Are you wondering how the 3rd Party Lender fits into all this?

Why it appears you must pay to lend your own money? How do you get licensed to offer loans in Texas? Do you need a 3rd Party Lender?

We’ve got you covered! We offer an 88-page “Texas CAB/CSO Small Dollar Loan Analysis”  that thoroughly explains how you can enter the lucrative Texas market for lending to the masses. 

The “3rd Party Lender rule can be difficult to grasp. Texas does NOT allow you to loan your own money. Weird, right?

Limited Time!

“Inflation Fighter Discount”

How to Start a Texas CAB - CSO

$50 Investment

Invest in a copy of our Texas CAB Analysis Manual.

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

Cost Per Funded Loan: The Ultimate Efficiency Hack for Lenders

Start a payday loan business

💰📊💡 Looking to take your lending business to the next level? You’re in the right place!

This blog post unravels the magic behind a powerful metric called Cost Per Funded Loan (CPFL).

Whether you’re a seasoned lender or just getting started, understanding and optimizing your CPFL could be the game-changer that skyrockets your efficiency and profitability!

🚀 So buckle up, and let’s dive deep into the world of CPFL. Your journey toward smarter lending begins here! 💼💎🎯

As a highly regarded advisor & consultant specializing in balance sheet lenders serving B2C markets, particularly credit-challenged consumers experiencing financial distress, I emphasize the significance of comprehensive Key Performance Indicators (KPIs) in lending operations.

Monitoring KPIs is indispensable to thoroughly understand your current standing, trend lines, and necessary strategic adjustments.

The data derived from these metrics offer a tangible and real-time measure of success, allowing you to enhance profitability and achieve other key objectives of your organization.

Here is an overview of these pivotal performance metrics:

1. Loan Origination Metrics: These metrics offer insights into the early stages of the lending process, such as application, initiation, underwriting, closing, and funding.

They provide a snapshot of the efficiency and effectiveness of your loan origination processes.

2. Loan Servicing Metrics: These indicators pertain to the ongoing administration of your loan portfolio, including payment processing, account maintenance, and escrow management.

Monitoring these can significantly improve the efficiency of your servicing operations and increase customer satisfaction.

3. Default Servicing Metrics: These metrics relate to loss mitigation, collections, foreclosure, and repossession.

Regularly evaluating these indicators can help you anticipate and manage loan defaults and minimize the financial impact.

4. Financial Performance Metrics: These metrics encapsulate the financial health of your lending operations, including profitability, liquidity, solvency, efficiency, and valuation.

Keeping a close eye on these can ensure your business’s overall financial viability and competitiveness.

As a lender serving credit-challenged consumers in sudden financial emergencies, these KPIs can help you better support your clients while maintaining your organization’s financial stability and growth.

Ensuring these metrics are thoroughly monitored and acted upon can position your business as a responsible and successful lending institution in this challenging market.

Let’s take a detailed look at the KPI: “Cost Per Funded Loan” (CPFL).

Cost Per Funded Loan (CPFL) is a measure of the total costs associated with generating and servicing a loan divided by the total number of loans that are successfully funded.

Costs can include direct expenses such as underwriting, acquisition, servicing, capital, and overhead expenses.

CPFL is an important efficiency metric for lenders. It helps them understand the cost efficiency of their loan origination and servicing processes.

High CPFL may indicate inefficiencies, while low CPFL can signify a well-optimized lending operation.

How to Measure:
CPFL can be calculated by taking the total costs associated with the loan process (both direct and indirect) and dividing it by the number of loans that have been successfully funded during a given period.

Potential Risks:
One of the major risks of focusing on CPFL is the potential for over-optimization.

If a lender focuses too much on reducing CPFL, they may cut important processes or controls, leading to a poorer quality loan portfolio and potential increased losses down the line.

Improvement Strategies:
Improvement strategies could include streamlining loan origination and servicing processes, leveraging technology for automation, improving underwriting efficiencies, or optimizing marketing spend.

Benchmarking for CPFL can be challenging because it can vary greatly depending on loan size, type of loan, target customer, geographical market, and lender’s business model.

However, industry studies or peer groups can provide some insights.

Consider reviewing the earnings reports for a few of the publicly traded lenders. World, Curo, and Enova are just a few.

Responsible Department/Role:
The Finance and Operations departments typically have a major role in managing and improving CPFL.

The Marketing department is also involved, especially regarding acquisition costs.

CPFL is interconnected with other metrics such as Acquisition Costs, Operational Efficiency, Default Rate, and Profitability.

Reporting Frequency:
CPFL is typically reported on a monthly basis, but the frequency may vary based on the lender’s needs and the volatility of the costs and loan volumes.

Data Source:
The data sources for CPFL include accounting systems for cost data and loan management systems for loan volume data.

Change Over Time:
Ideally, lenders would like to see CPFL decrease over time, indicating increasing efficiency in their lending operations.

CPFL could have seasonal patterns, such as higher costs during peak loan demand periods due to increased staffing or marketing costs.

If loans are grouped into different risk or product tranches, each tranche might have a different CPFL, reflecting varying costs and efficiencies.

Associated Costs:
The primary associated costs are the direct and indirect costs of loan origination and servicing, which can include underwriting, staff, technology, capital, and overhead costs.

Impact of Regulatory Changes:
Changes in regulatory requirements can impact CPFL, as they may require changes in the loan origination or servicing processes, potentially increasing costs.

Historical Context:
CPFL can vary over time based on changes in the lending market, technology, and regulatory environment.

Shareholder/Ownership Impact:
Shareholders typically prefer a lower CPFL, which indicates more efficient operations and can lead to higher profitability.

Sensitivity Analysis:
Sensitivity analysis for CPFL might involve modeling different cost or volume scenarios to see how changes in these factors might impact CPFL.

In conclusion, CPFL is an important KPI that helps balance sheet lenders understand and manage the cost efficiency of their lending operations.

As with any KPI, it needs to be viewed in context and in conjunction with other metrics to provide a comprehensive view of performance.

We’ve nearly completed our breakdown of the 70 KPIs subprime lenders must have to manage their loan portfolios!

Join our list to receive an alert and get access to all of them!!


Insider Secrets: 70 KPIs Top Subprime Lenders Use to Dominate the Market!

As a highly regarded consultant in the B2C subprime lending industry, I understand the importance of tracking various key performance indicators (KPIs) to maximize loan portfolio performance, minimize subprime borrower defaults, and earn a maximum return on investment (ROI) on balance sheet capital. Below is a comprehensive list of 70 critical KPIs for subprime lenders:

1. Loan Delinquency Rate
2. Loan Default Rate
3. Loan Charge-off Rate
4. Non-performing Loan (NPL) Ratio
5. Recovery Rate on Charged-off Loans
6. Net Interest Margin (NIM)
7. Average Loan Size
8. Average Loan Term
9. Average Interest Rate on Loans
10. Average FICO Score of Borrowers
11. Debt-to-Income (DTI) Ratio of Borrowers
12. Loan Origination Volume
13. Loan Application Approval Rate
14. Loan Application Rejection Rate
15. Loan Approval Turnaround Time
16. Loan Disbursement Turnaround Time
17. Loan-to-Value (LTV) Ratio
18. Debt Service Coverage Ratio (DSCR)
19. Early Repayment Rate
20. Prepayment Penalty Rate
21. Collection Efficiency Ratio
22. Recovery Efficiency Ratio
23. Collection Costs as a Percentage of Outstanding Debt
24. Recovery Costs as a Percentage of Recovered Debt
25. Recovery Rate of Repossessed Collateral
26. Customer Retention Rate
27. Customer Churn Rate
28. Customer Lifetime Value (CLV)
29. Net Promoter Score (NPS)
30. Customer Complaint Resolution Time
31. Customer Complaint Rate
32. Customer Engagement Rate
33. Customer Satisfaction Rate
34. Cost of Customer Acquisition
35. Cost of Loan Servicing
36. Cost of Loan Origination
37. Cost of Collections
38. Cost of Recoveries
39. Cost of Compliance
40. Cost of Credit Reporting
41. Net Operating Income (NOI)
42. Return on Assets (ROA)
43. Return on Equity (ROE)
44. Return on Investment (ROI)
45. Net Income Margin
46. Gross Profit Margin
47. Bad Debt Expense as a Percentage of Total Revenue
48. Provision for Loan Losses as a Percentage of Total Revenue
49. Capital Adequacy Ratio
50. Efficiency Ratio
51. Operating Expense Ratio
52. Return on Average Assets (ROAA)
53. Return on Average Equity (ROAE)
54. Loan Portfolio Diversification Ratio
55. Average Age of Loan Portfolio
56. Vintage Analysis by Loan Cohorts
57. Geographic Concentration of Loans
58. Industry Concentration of Loans
59. Loan Performance by Credit Tier
60. Loan Performance by Loan Purpose
61. Loan Performance by Loan Product
62. Loan Performance by Loan Term
63. Loan Performance by Loan Vintage
64. Loan Performance by Seasonality
65. Loss Severity Rate
66. Recovery Lag Time
67. Net Promoter Score of Collections Process
68. Customer Effort Score of Collections Process
69. Loan Origination Cost per Loan
70. Cost of Capital for Funding Loans

By closely monitoring these critical KPIs, subprime lenders can gain valuable insights into their loan portfolio’s health, identify areas of improvement, and implement strategies to maximize performance while reducing risks and defaults, ultimately leading to higher ROI on their balance sheet capital.

More KPIs

We’ve nearly completed our breakdown of the 70 KPIs subprime lenders must have to manage their loan portfolios!

Join our list to receive an alert and get access to all of them!!


Leveraging the Refinancing Rate [RR]: A Powerful KPI for Subprime Lenders


The Refinancing Rate (RR) is a crucial Key Performance Indicator (KPI) for subprime lenders seeking to understand their loan portfolio’s performance. The RR reveals the proportion of loans that get refinanced within a specific period, providing valuable insight into the sustainability of your portfolio.

The Importance of Refinancing Rate

The Refinancing Rate [RR] is particularly significant for subprime lenders due to subprime borrowers’ inherently volatile financial situations.

A high RR could signal an urgent need to recalibrate loan amounts, terms, or interest rates to better suit the borrowers’ repayment abilities.

By effectively managing the RR, lenders can enhance the profitability of their refinancing ventures, provided they balance the associated risks appropriately.

To illustrate, suppose a lender has 100 outstanding loans at the beginning of the year; by the end, 20 of these loans are refinanced.

The RR for that year is 20%, signifying that one in five loans was refinanced.

Opportunities Through RR

Refinancing provides an effective customer retention strategy.

If a borrower struggles with their repayment plan, refinancing allows an adjustment to their plan, fostering long-term customer relationships and potentially enhancing profitability.

Moreover, refinancing often involves fees, creating an additional revenue source for lenders.

However, lenders must balance this with the risk of overburdening borrowers, potentially leading to loan defaults.

Subprime lenders can also benefit from offering variable interest rates, adjusting rates in response to economic fluctuations to maintain income from interest.

Refinancing Rate Challenges

Improving the RR comes with several hurdles.

Regulatory frameworks governing subprime lending can impede a lender’s ability to manage their RR.

Technological constraints can also affect a lender’s capacity to assess borrowers’ creditworthiness accurately and set suitable loan terms.

Finally, lacking skilled personnel can hinder the lender’s ability to manage the RR effectively.

Deep-Dive: RR by Tranches

Subprime Lenders can achieve a deeper analysis by reviewing it tranche-by-tranche.

This method involves categorizing the loan portfolio based on risk attributes like loan size, loan term, borrower’s credit score, repayment history, or the type of financial emergency facing the borrower.

This detailed analysis can help identify segments with higher refinancing prevalence, pinpoint areas of higher risk, or highlight segments where loan terms or amounts may need adjustment.

Investor Perspectives

Investors may interpret a high RR as a positive or negative sign, depending on their risk tolerance.

Some may appreciate the high-interest rates and fees that come with frequent refinancing, while others may perceive it as a sign of poor loan underwriting and high risk.

Untapped Opportunities

Lenders can enhance their revenue by offering credit insurance or other loan protection products as part of a refinancing package.

This offers added security for the borrower and more income for the lender.

Additionally, implementing technological innovations like AI and machine learning can help predict borrower behavior and assess refinancing risk more effectively.

These predictive analytics can optimize the RR, enhancing profitability.

Advanced RR strategies & improvements.

1. Enhanced Data Analytics: Lenders should consider investing in sophisticated data analytics tools. By utilizing big data, lenders can uncover hidden patterns and correlations that could provide deeper insights into borrowers’ behavior and their likelihood to refinance. This can help lenders to identify potential risks earlier and make necessary adjustments proactively.

2. Behavioral Economics: Incorporating principles of behavioral economics into loan strategies could help manage the RR. By understanding what motivates borrowers’ behavior, lenders can design incentives that encourage timely repayments and reduce the need for refinancing.

3. Customer Education: Another potential strategy could be customer education. Lenders could offer their customers educational resources on financial planning and management, helping them understand their loan commitments better and reducing the need for refinancing. This approach could also foster a stronger lender-borrower relationship, enhancing customer retention in the long run.

4. Portfolio Diversification: While the article discussed viewing RR on a tranche-by-tranche basis, it didn’t explore the possibility of portfolio diversification to manage RR. Lenders can hedge their risks and better control their overall RR by maintaining a diverse portfolio with loans of different amounts, terms, and interest rates.

5. Strategic Partnerships: Subprime lenders might consider forging strategic partnerships with fintech companies or other financial institutions. These collaborations could offer advanced technological solutions and shared knowledge that helps improve the lender’s ability to manage their RR.

"Reacts" vs. "Refinance Rates"

The term “reacts” in the context of subprime lending typically refers to a situation where a borrower who has fully paid off a loan (or is close to doing so) initiates a new loan with the same lender. 

Essentially, “reacts” reflect the repeat business with existing customers, which is crucial for lenders as it can reduce customer acquisition costs and signify a positive lender-borrower relationship.

On the other hand, the “Refinancing Rate” (RR) is a KPI that measures the proportion of existing loans that get refinanced into new loans within a given time. 

Refinancing means replacing an existing debt obligation with a new one under different terms. 

Borrowers may refinance their loans for several reasons, such as taking advantage of lower interest rates, consolidating multiple debts into one, or extending the repayment period to reduce their monthly payments.

While both “Reacts” and “Refinancing Rate” deal with the continuation of a financial relationship between the lender and borrower, they represent different aspects:

  1. Different Motivations: Refinancing usually occurs due to changes in the borrower’s financial situation or market conditions (e.g., lower interest rates), prompting the borrower to seek more favorable loan terms. “Reacts,” on the other hand, are typically driven by the borrower’s need for additional credit, often after successfully completing a previous loan repayment.
  2. Implication on Credit Risk: A high Refinancing Rate might suggest that borrowers are struggling to repay their existing loans under the initially agreed terms, indicating higher credit risk. In contrast, a high rate of “reacts” often signifies that borrowers can repay their loans and are willing to continue their relationship with the lender, which can be a positive signal for credit risk management.
  3. Revenue Generation: Both “reacts” and refinancing present opportunities for revenue generation. Refinancing could generate income from fees associated with the process, and the newly refinanced loan could carry higher interest if market conditions have changed. Meanwhile, “reacts” represent a new lending opportunity, which means new interest income for lenders.

As a subprime lender, managing and monitoring both metrics is crucial.

A balanced approach to encouraging “reacts” while managing the Refinancing Rate could result in a healthy, sustainable loan portfolio. 

Lenders should strive to foster relationships that encourage repeat business (“reacts”) and simultaneously ensure that their loan terms are sustainable and manageable for borrowers to keep the Refinancing Rate reasonable.

Both these metrics can provide valuable insights into the lender’s performance, the profitability of their loan portfolio, and their borrowers’ financial behaviors and needs.

By understanding the interplay between “reacts” and the Refinancing Rate, subprime lenders can make more informed decisions to maximize profitability and minimize risk.


Though a crucial KPI for subprime lenders, the RR shouldn’t be viewed in isolation. It should form part of a comprehensive analysis that includes other KPIs and business aspects. To optimize the RR, subprime lenders could invest in more sophisticated technology, upskill their staff, or adjust their loan terms to suit borrowers’ abilities better.

A well-managed RR can strengthen customer relationships, control risk, and augment revenue streams, making it an essential tool for strategic decision-making in subprime lending.

More KPIs

Want our list of 70 kpis?

We’ve nearly completed our breakdown of the 70 KPIs subprime lenders must have to manage their loan portfolios!

Join our list to receive an alert and get access to all of them!!


KPI: Cross-Sell Ratio [CSR] for Subprime Lenders

Boost Your Bottom Line: Cross-Sell Ratio Tactics for Subprime Lenders

Definition and Precise Measurement of CSR:

The Cross-Sell Ratio refers to the ratio of the number of products or services sold per customer.

It measures how effectively you can increase the number of services or products a single customer uses. For your lending institution, it measures the number of different loan products, such as installment, payday, or title loans, that a single customer uses.

To calculate the Cross-Sell Ratio, divide the total number of loan products or services sold by the number of customers.

For example, if you have sold 500 loan products or services to 250 customers, your Cross-Sell Ratio would be 500/250 = 2.0. This means that, on average, each customer uses two different loan products or services from your subprime loan business.

Current KPI Values:
As of my last consultation, the average Cross-Sell Ratio for subprime lenders in the market ranged between 1.5 to 2.0.

However, this general average can differ based on the specific market and lending strategies employed.

Aiming for continuous improvement rather than chasing a set number is best. Progress could be measured weekly or monthly, depending on your organization’s capacity and resources.

Specific Challenges:

One of the biggest challenges with improving the Cross-Sell Ratio requires a deep understanding of your customer’s needs and financial capacities.

It also requires a diverse range of loan products catering to these different needs.

Regulatory hurdles, especially those regarding predatory lending practices, can limit the type of products you can offer.

Technological issues related to CRM and data analytics could also limit your ability to track and improve this KPI.

Furthermore, staffing limitations may limit your ability to follow up with customers and offer additional loan products.

Investor Expectations:

Investors view a high Cross-Sell Ratio as an indication of customer satisfaction and loyalty.

It shows that your business can meet a broad range of customer needs, which could lead to increased revenues and profitability.

However, concerns about over-lending and customers becoming over-indebted in the subprime market could arise. Thus, a balance must be maintained.

Additional Commentary

While focusing on CSR, it’s vital to consider cross-selling quality, i.e., providing services that genuinely meet customers’ needs and not just pushing products to increase the ratio. Furthermore, while the subprime market offers an opportunity for high returns, it’s also associated with high risk. Maintaining a robust risk assessment and management framework is essential.

As a lender focusing on subprime consumers, CSR can be a crucial tool to measure your business’s growth and performance, but it should never compromise the ethical considerations of lending.

Cross Sell Examples

Here is a list of potential cross-sell products and services a brick-and-mortar and online subprime lender might consider.

The key here is to consider the variety of your customers’ financial needs and how you could provide services to meet those needs.

  1. Installment Loans: These are larger loans that are repaid over a set period of time. They can be used for major purchases or to consolidate other debts.
  2. Payday Advance Loans: These are short-term loans designed to cover a borrower’s expenses until they receive their next paycheck.
  3. Line of Credit: This service provides a pool of money that customers can draw from. It provides flexibility as the borrower only pays interest on the amount used.
  4. Vehicle Title Loans: If your customer owns a vehicle, they may be interested in a loan where their car is collateral.
  5. Secured Credit Cards: For customers who have poor credit but are looking to rebuild it, offering a secured credit card can be an excellent service.
  6. Debt Consolidation Services: These are particularly useful for customers with multiple high-interest debts. It allows them to consolidate their debts into a single payment with a lower interest rate.
  7. Financial Counseling Services: Providing financial education and counseling services can help your customers better manage their finances, which could reduce default rates.
  8. Credit-Building Loans: These are small, short-term loans reported to the credit bureaus to help customers build or rebuild their credit histories.
  9. Insurance Products: Providing insurance for items such as automobiles, health, or life could be an additional revenue source. This will depend on regulatory restrictions and partnerships.
  10. Emergency Savings Account: This can provide a safety net for your customers and reduce the likelihood they will need high-interest loans in the future. Offering a competitive interest rate could make this attractive.
  11. Tax services can be an excellent cross-selling strategy for a subprime lender. 

Here’s why: Synergy with Core Business: Tax services align well with lending services, as both require a good understanding of a client’s financial situation.

Attract and Retain Clients: Many people find tax preparation confusing and time-consuming. Offering these services can attract new clients and encourage existing ones to use more of your services. 

Increase Revenue: Tax services provide an additional source of revenue. Customers seeking tax help might also be interested in your other financial products. 

Build Trust: By helping clients with their taxes, you establish a level of trust which could make them more willing to use your lending services in the future. 

Financial Health Check: Offering tax services provides an opportunity to review the client’s financial health. This could lead to the identification of suitable cross-sell opportunities. 

Seasonal Cash Flow: Tax season can generate significant business, aiding in cash flow during this period.

Considering the logistics and regulations involved in providing tax services is essential. This includes ensuring that you have trained staff who are up-to-date with the latest tax laws and software. Consider the cost of professional liability insurance and whether you must register with the IRS as a tax return preparer.

IMPORTANT: Some companies provide turnkey solutions for lenders who want to offer tax preparation services to their customers. Reach out to me for introductions. [

Overall, tax services can be a valuable addition to your service offering, benefiting your clients and business.

While selling these additional products and services can boost revenues and improve customer retention, ensuring that products align with the customer’s needs and financial situation is essential. Always be mindful of responsible lending practices and regulations.

So! Now you have a comprehensive understanding of the Cross-Sell Ratio KPI.

Feel free to reach out if you need further clarification or assistance.

3 ways I Help lenders

How to start a subprime consumer loan business

The Bible

Our 500-page “bible.” How to Loan Money to the Masses!

Consultant: Start a payday loan business


Get some serious help! Ready for hire.

Debt collector working at

Discovery Call

Are we a good fit? Free “Discovery Call.”


Subprime Lender Loan Charge-Off Rate (LCR) – Definition and What It Measures

Loan Charge-Off Rate (LCR) – Definition and What It Measures

The Loan Charge-Off Rate (LCR) is a Key Performance Indicator (KPI) that quantifies the rate at which a lender’s loans are deemed unlikely to be recovered and written off as a loss. It measures the risk and effectiveness of a lender’s credit decisions and recovery efforts. It is calculated by dividing the total value of loans charged off during a specific period by the total value of the loan portfolio at the beginning of that period.

LCR = (Total value of charged-off loans during the period) / (Total value of loan portfolio at the beginning of the period)

For example, if a lender has a loan portfolio worth $1,000,000 at the beginning of the quarter, and during that quarter, it charges off loans worth $25,000, the LCR for that quarter would be 2.5% ($25,000 / $1,000,000 * 100%).

Importance and Use of LCR for Subprime Lenders

For subprime lenders, the LCR is a critical KPI. Since subprime borrowers are generally considered riskier due to their credit history, the likelihood of loans being charged off is typically higher than with prime borrowers. As such, a subprime lender’s ability to manage and limit its LCR significantly indicates its operational effectiveness and risk management capabilities.

Managing and improving the LCR involves multiple facets, including but not limited to improving underwriting standards, enhancing collections efforts, and possibly restructuring loans. It’s important to note that while lenders want to keep the LCR as low as possible, a too-low rate might suggest overly strict lending standards, which could limit loan volume and overall profitability.

Challenges in Improving LCR

Subprime lenders face several challenges in improving their LCR. Regulatory hurdles, such as limitations on collection practices, can make it more difficult to recover funds from delinquent borrowers. Technological issues may also be a factor, notably if the lender lacks advanced analytics capabilities to predict which borrowers are most likely to default. Additionally, staffing can be a limitation if there are not enough trained personnel to manage collections effectively.

Investor Expectations

Investors in subprime lenders generally understand the higher risk associated with this market segment. However, they still expect lenders to manage their LCR effectively. A high LCR can indicate poor underwriting standards or ineffective collection practices, impacting profitability. Therefore, investors typically prefer lenders with lower LCRs, all other things being equal.

Unique Considerations for Subprime Lending

Given the nature of subprime lending, lenders should be aware of the additional risks this market presents. They should also be prepared to comply with additional regulatory requirements, such as stricter reporting requirements or limitations on collection practices. Borrower expectations may also differ, with subprime borrowers potentially requiring more flexibility in terms of payment schedules.

Signup for more in our Series, “Subprime Lender KPIs.”

I hope this explanation provides a comprehensive overview of the LCR and its implications for subprime lenders. Do you have any other questions, or is there anything else you would like me to expand on? Reach out:

3 ways I Help lenders

How to start a subprime consumer loan business

The Bible

Our 500-page “bible.” How to Loan Money to the Masses!

Consultant: Start a payday loan business


Get some serious help! Ready for hire.

Debt collector working at

Discovery Call

Are we a good fit? Free “Discovery Call.”


Supreme Court Rocks the Boat: Native American Tribe Lenders Subject to Bankruptcy Laws

Native American Indian Executive-Installment Lender

In the case of Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, the Supreme Court ruled that Native American tribes are subject to bankruptcy laws like any other creditors.

Lac du Flambeau Band owns an online payday lending operation and argued that their sovereign immunity excluded them from an automatic stay of the Bankruptcy Code when a customer files for bankruptcy.

The Supreme Court, however, affirmed the lower courts’ decisions that such an exemption does not exist.

Justice Ketanji Brown Jackson, speaking for an 8-1 majority, asserted that a congressional statute only overrides sovereign immunity if Congress uses “unmistakably clear” language.

According to Jackson, the Bankruptcy Code satisfies this criterion as it unequivocally includes any and all government entities within its scope, including federally recognized tribes.

One point of contention was whether a federally recognized tribe qualifies as a “governmental unit.”

Jackson argued that the comprehensive nature of the definition of “governmental unit” within the Bankruptcy Code, which includes a broad range of governments of varying sizes and types and concludes with a catchall phrase that encompasses ‘other foreign or domestic governments,’ would naturally include such tribes.

An important part of Jackson’s argument was her interpretation of the phrase “foreign or domestic .”

She argued that pairing these two extremes indicates all-inclusiveness, providing examples like ‘rain or shine’ and ‘near and far.’

She contends that placing this pair at the end of an extensive list signals an intent to cover all forms of government.

Furthermore, Jackson reasoned that if enforcing regulatory authority during a bankruptcy or tax collection can be applied to governmental units, excluding certain governments from this definition would be inconsistent, particularly when these governments, like states and the federal government, also engage in tax and regulatory activities.

Given the governmental functions performed by federally recognized tribes, she concluded that the Bankruptcy Code also categorically applies to them.

Jackson dismissed arguments from the Band and dissenting Justice Gorsuch that the statute does not mention tribes explicitly, noting that the rule is not a “magic-words requirement” and doesn’t necessitate an explicit mention of Indian tribes.

She refuted Gorsuch’s claim of a rigid division between foreign and domestic governments, arguing that all governments fall somewhere on the spectrum between foreign and domestic.

The justices’ near-unanimity suggests a lack of willingness to twist the language of the Bankruptcy Code to exempt tribes from it, especially when such immunity is not granted to the states or the federal government.

Ready to learn more?


“How to Start or Improve a Consumer Loan Business!” $150.00

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

PDF delivered immediately to your Inbox!


The $500 Loan That Shook the Financial World: An Allegory of Hope and Resilience

I Had a Dream That Shook the Financial World

Start a payday loan business.

Once upon a time, in a bustling town filled with towering buildings and busy streets, there lived a humble individual named Alex.

Alex had always been a hardworking soul, dedicated to his job and striving to make ends meet.

However, life had thrown a series of challenges his way, and he was trapped in a web of financial struggles.

One sunny morning, as the birds chirped and the city buzzed with activity, disaster struck. Alex’s faithful old car, which had faithfully carried them to work day in and day out, finally succumbed to the weight of its age and broke down.

Panic surged through Alex’s veins as he realized his car’s vital role in keeping his job and making a living.

With his heart sinking and a sense of urgency in his every thought, Alex turned to the advice of organizations like PEW and The Center for Responsible Lending. They have produced countless articles claiming that securing a bank or credit union loan has never been easier.

Hope bloomed in Alex’s weary heart, for it seemed like a glimmer of light in his otherwise bleak situation.

With renewed determination, Alex marched into the nearest bank, clutching his worn-out bank statement and a paycheck stub confirming his dedication and work ethic.

He approached the loan officer, his eyes filled with desperation and a faint glimmer of hope.

“I need a loan,” Alex uttered, their voice trembling slightly. “Just $500 to fix my car so I can continue working and supporting myself.”

The loan officer, donning a crisp suit and an air of detached authority, glanced at Alex’s credit history and shook her head, her face void of sympathy.

“I’m sorry, but your credit score does not meet our requirements. You must have an account with us for at least 12 months, have a direct deposit of your payroll proceeds, demonstrate an ability to pay, and maintain a 25% debt-to-income ratio. Come back when you fulfill these conditions.” Oh, PS; we charge $15/month for checking accounts here if you fail to maintain a $1,000 balance at ALL times!”

Frustrated, Alex left the bank, feeling like a heavy cloud had settled over his weary soul.

His journey to secure a loan became a cycle of hope and despair as he approached various banks and credit unions, only to be met with stringent requirements and rejected repeatedly.

With each rejection, Alex’s spirit dwindled further.

He felt as if he were trapped in a vicious maze with no way out. The world seemed to be closing in on him, suffocating his dreams and aspirations.

Alex stumbled upon a small, modest storefront wedged between two towering banks in his darkest hour.

The sign above reads “Community Funding – Lending a Helping Hand.”

With a last flicker of hope, Alex stepped inside and was greeted by a warm smile from an elderly gentleman behind the counter.

Alex poured out his story, his voice a mixture of desperation and longing.

The gentleman listened attentively, his kind eyes filled with understanding. “We may not have the same requirements as the big banks and credit unions, but we believe in helping those who need it the most,” he said.

“We will take a chance on you, Alex.”

Tears welled up in Alex’s eyes as he realized that someone finally saw his worth beyond a credit score.

Community Funding granted Alex the much-needed loan, allowing Alex to repair his broken-down car and keep his job.

Alex felt renewed purpose as his car’s engine purred to life.

He knew he had been given a second chance and was determined to seize it with all his might.

From that day forward, Alex became an advocate for change, shedding light on the struggles faced by subprime borrowers. He stood up against the unjust barriers that trapped hardworking individuals in a cycle of poverty and financial instability.

With renewed determination, Alex contacted local organizations, sharing his story and advocating for fair lending practices.

He attended community meetings, spoke with lawmakers, and connected with others who had faced similar challenges.

His voice echoed through the town, raising awareness and inspiring others to take action.

Slowly but surely, the oppressive grip of the traditional banking system began to loosen as more people realized the need for accessible financing options, especially for those marginalized and deemed unworthy due to their credit history.

Alex’s efforts did not go unnoticed. Community Funding, where Alex had found solace and support, grew in prominence, drawing attention from the media and influential figures.

The doors of opportunity opened wider, and more individuals rejected by conventional lenders found a helping hand at Community Funding.

As the movement gained momentum, banks, and credit unions were forced to reevaluate their practices. They recognized the power of inclusivity and the potential of subprime borrowers.

Slowly, they began implementing changes, loosening their strict requirements and offering more flexible lending options to those with less-than-perfect credit. [OK, maybe I’m laying this on too thick?]

Alex’s journey had transformed from a lonely struggle to a catalyst for change. His once-depressing quest for a $500 loan had blossomed into a revolution, shedding light on the financial industry’s systemic issues.

He symbolized resilience and hope, reminding everyone that no one should be judged solely by their credit score.

In the end, it was not just Alex’s car that was repaired but also the broken system that had failed him.

The town became a beacon of financial inclusivity, offering support and opportunity to all who sought it.

The once-insurmountable barriers that hindered subprime borrowers began to crumble, creating a fairer and more compassionate lending landscape.

Alex’s journey had taught him the true meaning of perseverance and the power of unity.

He discovered that change was not achieved by a single individual alone but by a collective voice demanding justice.

Through their allegorical tale, Alex had not only secured the funds to fix his car but had paved the way for a brighter future for countless others.

And so, the story of Alex, the subprime borrower in search of a $500 loan, became a testament to the resilience of the human spirit and the transformative power of fighting for what is right.

It serves as a reminder that every journey, no matter how challenging, has the potential to bring about positive change if met with unwavering determination and a belief in a better tomorrow.

3 ways I Help lenders

How to start a subprime consumer loan business

The Bible

Our 500-page “bible.” How to Loan Money to the Masses!

Consultant: Start a payday loan business


Get some serious help! Ready for hire.

Debt collector working at

Discovery Call

Are we a good fit? Free “Discovery Call.”

→ Limited time inflation relief pricing: Save $147.00

Limited Time Inflation Relief Pricing $147 Off ends in