How to Start a Car Title Loan Business
How to Start a Personal Loan Business
How to Start a Payday Loan Business
How to Start an Installment Loan Biz
You know the drill. You have that burning desire to start your new business BUT you just don’t know where to begin. You’ve heard about all the money being made by “lending money to the masses.”
What’s that mean: “Lending Money to the Masses?” It’s the business of providing various loan products to consumers; car title loans, installment loans, personal loans, micro-loans..
You know in your gut that these loan businesses can generate SERIOUS profits for their owners! But you’re unsure of exactly what steps to take to be successful.
A recent study revealed 63% of U.S. residents cannot meet a sudden $500 car repair bill! Shocking!!
What’s this mean for you? There is a HUGE and growing demand by consumers for access to small dollar loans.
It’s no secret Silicon Valley is launching new lending platforms by the boatload.
However, the majority of these platforms are focused on 680+ FICO scores.
There is not a lot of new competition for the “unbanked” and “underbanked” employed workers that absolutely must get their hands on $300 t0 $2500+ quickly and without a lot of hassle.
You can fill this consumer need.
We teach you how to make money by lending money.
We teach you how to make collateralized loans to consumers [Car, boat, plane, RV, motorcycle…] and non-collateralized personal loans like payday, installment loans, micro and line of credit.
No one else does what we do!
Doubt me? Just start a search on Google for “how to start a car title loan business.”
Or, search for “how to start a consumer lending business.” Jer & the Trihouse Team DOMINATE.
The few competitors who have entered this title loan training space are long gone!
We know our business. We’ve been doing it since 1997. Everyone in the title loan industry knows us and I guarantee everyone making car title loans or providing products and services to our industry has read our “Bible” or attended one of our “Bootcamps.”
How do you start a consumer loan business?
This is NOT rocket science!
Should you buy a loan franchise? We say NO! Here’s why. The Trihouse Team has more than 20 years experience running businesses focused on car title, installment, payday loan, check cashing stores and Internet portfolios.
Get your copy today, take a few days to study it, then pick up the phone and call 702-208-6736 or email TrihouseConsulting@gmail.com with any questions.
Order “The Business of Lending Money to the Masses” Course.
How to Make Money by Lending Money to the Masses.
Step-by-Step What We Teach You.
Our “The Business of Lending Money to the Masses” Course will teach you EVERYTHING you need to know to make money in the lucrative consumer loan industry.
We begin with an overview of consumer lending in the USA and continue with a thorough explanation and analysis of every aspect of starting and successfully running a profitable consumer small-dollar loan business.
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Here’s a list of all the Chapters (500+ pages):
TABLE OF CONTENTS
Your First Steps: 17
Macro View of the Consumer Loan Industry. 19
State of the Consumer Lending Industry. 23
Hang-In There! The Future is Ours!. 30
Flash – It’s a Whole New Business. 33
The Future of the Consumer Loan Industry. 47
EXECUTIVE SUMMARY & the BUSINESS of LENDING.. 56
SECTIONS 1 – 9. 57
CONSUMER LOANS DEFINED.. 58
DEVELOPMENT OF DEMAND.. 59
CUSTOMER PROFILE. 62
THE NUMBERS. 64
REGULATORY ENVIRONMENT. 68
LEGISLATION SURVEY. 70
TRENDS IN FINANCING & VALUATIONS. 70
FUTURE OF THE PRODUCT. 72
The Loan Process: an Overview.. 74
Step-by-Step Procedures. 75
Consumer loan Procedures Step-By-Step Overview.. 75
Telephone Qualifications: Your Most Important Skill. 79
In Your Office, Step 2: 84
How to Calculate the APR Formula. 85
General Tactics. 90
Exhibits. 94
Loan Extension Procedures. 102
Typical Installment Loan Breakout. 105
Title Loans: Overview of the Product & Industry. 106
How Big Is the Title Loan Market. 107
How Title Lending Works. 108
Who Uses Auto-Title Loans. 110
Title Loan Profits. 112
Regarding Title Loan Legislation. 116
Laws & Regulations. 117
Title Loans: Documents You Need. 120
Recording the Title. 123
Title Loan Add-On Fees. 126
Title Loans: Repossession. 126
Title Loan Repossession Checklist. 129
Repossession: The Consumer’s Point of View.. 134
Defaults and Repossessions in Motor Vehicle Transactions. 147
Title Loan GPS, Starter Interrupt Devices – Payment Assurance Devices. 151
How to Value Your Loan Collateral 161
Title Loan Lender Philosophies. 166
Title Loan Lenders Serving Active-Duty Service Members NO-NO!. 166
Title Loan Resources. 169
Detecting Title Fraud. 170
Title Loan Forms. 173
Manloading & Personnel 178
Consumers typically apply for consumer loans as follows: 178
Profits: How Much Can You Make? 180
Sub-Prime Consumer Reporting, ID Validation & Credit Bureaus. 185
Software for the Business of Lending Money. 200
Features & Issues to Consider: 203
Consumer loan Software Vendors. 206
Electronic Funds Transfer (ACH & EFT). 211
Internet Lending: How to & Strategies. 228
How Internet Lending Works. 229
Your First Steps to Reverse Engineer an Internet Lender’s Loan Process. 230
Web Site Development. 233
Choosing a Domain Name. 233
Web Site Hosting. 234
Web Site Development. 235
In-House Development. 235
Out Sourcing. 237
Turnkey Websites. 239
Search Engine Positioning. 241
Keywords and Key Phrases. 246
Final Note on Google’s PPC Policy. 247
More on Pay-per-Click Search Engines. 251
Definitions. 252
Marketing Other Than Search Engines. 254
Affiliate Programs. 254
CFSI Small Dollar Loan Data. 257
Purchasing Loan Leads & Applications. 270
Buying Consumer Loan Leads. 270
Percentage of Applications Funded. 272
Fees to Charge. 272
Email Strategies. 274
Mobile Friendly Web Sites. 277
Faxing of Loan Documents. 281
Collections. 283
Debt Collector’s Phone Communication Required Statements. 291
List of Techniques & Procedures for Your Collection Campaign: In-House Approach. 292
Collection Record Keeping and Data Entry. 292
Typical Collection Letter Template. 300
Taking the Risk Out of Consumer Advances. 301
Collections: Final Thoughts. 301
Extended payment Plans. 302
Consumer Perspective on Collectors. 304
Collections. 306
COLLECTION LETTERS AND PRACTICES. 307
Avoiding the Pitfalls of Debt Collection. 307
Small Claims. 313
ID-Verification Systems. 325
Instant Bank Verification. 327
Selling Your Debt. 329
How to Calculate the True Annual Percentage Rate on a Consumer loan?. 330
The APR Formula. 331
APR for Deferred Presentment Loans. 332
Default Rates. 333
Compliance Issues. 335
Arbitration Clauses. 346
Licensing & Legislation. 350
Current Licensing Models. 352
• Choice-of-Law Model: 352
• State-by-State Licensing Model: 352
• Offshore Model: 352
• Sovereign Nation: 352
• Credit Services Organization (CSO) Model: 352
• Bank Model: 352
• Creative Models: 352
Scenario 1. 353
Scenario 2. 353
Scenario 3. 353
Scenario 4. 355
Scenario 5. 355
Final Thoughts. 355
Consumer Loan Demographics. 357
Marketing/Branding/Advertising. 359
Craigs List. 365
Tactics & Strategies. 370
Tactics: Niches. 370
Tactics: How to Make Money & Not Fund Consumer Loans. 370
Tactics: Contact Info on Your Web Site. 371
Tactics: Choosing a Name for Your Company. 371
Tactics: Contract Language & Arbitration. 372
Tactics: Additional Web Site Resources. 372
Tactics: Stress the Benefits. 372
Tactics: Make it Easy. 372
Tactics: Repayment Options. 372
Tactics: Gathering Intelligence on your Market. 373
Your Competition: Tactics. 374
Site Selection. 376
Zoning. 376
Criteria for a Consumer Loan Store. 377
Motion Loft: A Tool for Site Selection. 378
Zoning. 380
Leasing Checklist. 381
Site Location Criteria. 383
Site Criteria Table Checklist. 384
Top 10 Do’s. 385
Top 10 Don’ts. 385
Consumer Lending & the Internet. 389
Licensing. 389
Internet Lending Topics. 390
Internet Default Rates. 390
Internet Volume & Capital Requirements. 390
Web Site Marketing. 391
Obtaining your Client Documents. 391
Delivery of-the Funds to the Client. 391
Call Centers & Outsourcing. 392
Prepaid, Stored Value & Reloadable Cards. 394
What Are They?. 394
Consult legal Counsel and the Vendors. 396
Kiosks or Automated Financial Centers. 397
Consumer Loan Product Alternatives. 398
Sales-Leaseback. 399
Cash Back Ad Sales. 402
Catalog Sales. 402
Delivery Document Center. 403
Cash Rebates. 403
Additional Income Opportunities & Traffic Builders. 406
Obtaining Funds for Your Loan Business. 408
Lender Resources. 409
Lender Surety Bonds & Insurance. 411
List of State Regulatory Agencies. 413
Definitions. 419
CAC – Customer acquisition cost. All marketing and sales expenses, including POS, labor….. 419
Consumer Lenders. 419
APR. 419
Cash Advance Loan. 419
Cash Advance Industry. 419
Consumer. 419
Contract. 419
Credit. 420
CSR. 420
Deferred Deposit. 420
Extension. 420
Financial Accommodation. 420
Flip. 420
NSF. 420
Consumer loan. 420
Refinance. 421
Renewal 421
Rollover. 421
Short-Term Loans. 421
A Typical Guide to Buying a Franchise. 422
Industry Associations. 435
Legal Resources for Lenders, Check Cashing & Car Title Lending. 438
Business Plan Outline. 441
Excel Business Plan Spreadsheets. 441
Conservative 1st Year Projected Cash Flow: Single Payment Loans. 449
Typical Minimum Equipment List for a Single Payment Startup. 450
I. WHAT IS A BUSINESS PLAN.. 450
II. WHY WRITE A BUSINESS PLAN.. 450
III. KNOW YOUR BUSINESS. 451
IV. BUSINESS TRENDS TO CONSIDER. 451
V. BUDGETING – -HOW AND WHY. 452
VI. MANAGING YOUR BUSINESS PLAN.. 455
VII. SUMMARY. 456
VIII. OTHER CONSIDERATIONS. 456
PERSONAL TRAITS. 456
WHAT DO BANKERS LOOK FOR? 456
YOUR OWN PERSONAL DEVELOPMENT. 456
MARKETING THOUGHTS. 457
Sample Loan Forms. 461
Consumer Loan Document Checklist. 480
Final Thoughts on Launching & Operating a Successful Consumer Loan Business. 510
[Includes thorough coverage of both Internet and store-front consumer lending.]
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