Entrepreneurs: Little-Known, Insider Benefits of Starting a Consumer Loan Business
There are several types of consumer loan products available for subprime borrowers, who typically have lower credit scores and may struggle to secure loans from traditional banks and financial institutions. Some of the most common types of consumer loan products for the subprime market include: Payday Loans: Payday loans are short-term, high-interest loans that are […]
Insider Difference Between Payday Loans & Installment Loans
Think of a payday loan like borrowing a little bit of money from a friend to buy a toy and then giving the friend all the money back the next time you get paid. An installment loan is like borrowing a bigger amount of money from a bank to buy a bicycle and then paying […]
Why Audacious John Chose a Payday Loan vs. a Bank “Loan”
Once upon a time, a consumer named John found himself in a difficult situation. He had written a check for $100 to pay for an unexpected expense but soon realized that the check would bounce because he didn’t have enough money in his account to cover it. He knew that if the check bounced, he […]
A Story About Jake, the Debt Collector
Here’s a story about a debt collector named Jake: Once upon a time, there was a debt collector named Jake. He had been working in the collections industry for many years. He had seen it all – from borrowers who genuinely wanted to pay their debts but were facing financial hardships to those who simply […]
Fast Cash for Your Emergencies: Payday Loans
10 Reasons Consumers Living Paycheck to Paycheck Need Access to small Dollar Loans To cover unexpected expenses, such as car repairs or medical bills, that cannot wait until the next paycheck. To avoid late fees or overdraft charges on bills that cannot be paid on time due to a lack of funds. To prevent the […]
Profits: 2023 Demand for Car Title, Installment & PDLs
A new CFPB study revealed, “Between our 2021 and 2022 surveys, use of payday loans, installment loans, and car title loans increased dramatically nationwide! Demand for car title loans, in particular, rose nearly 3%.” The financial stability of Black and Hispanic consumers, renters, and under-40s suffered dramatically between 2021 and 2022, said the CFPB. The […]
For Lenders: “What If” Scenarios Excel Powered
TYPICAL WHAT-IF SCENARIOS You buy leads. Should you buy $2.00 leads? $10 leads? $50 leads? $100 leads? $185 leads? [The average CAC [Customer Acquisition Cost in our industry is $185.00] What’s the impact on your loan portfolio if you convert 8% of $50 leads vs 3% of $10 leads? What if you increased your “reacts” […]
Extreme Consumer Loan Business Profits?
Cash advance and payday loan businesses can offer superior returns for an entrepreneur focused on lending money to the masses. Sure! We charge what are perceived to be high-interest rates because our customer acquisition costs and our default rates can be SCARY. What to do? You simply build these metrics into your business plan. You […]
Trends: Lending to the Masses Opportunity
Trend: Consolidation/Acquisition/Rollup Efficiency Opportunities Lenders must grow their loan portfolio Inflation is reducing discretionary income for our demographic Loan DEMAND is up and will scale into 2023+ Loan ORIGINATION volumes are suffering. Loan APPROVAL rates are decreasing. Loan applicant “QUALITY” is deteriorating. Near prime devolving to subprime and “reacts” are the primary source for loan originations 2023 […]