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Free: Consumer Loan Newsletter. The frequency is typically once each month. If you have an interest in the Consumer loan industry, YOU NEED OUR NEWSLETTER!

WE PROMISE to never sell, give-away, or abuse your contact info. You will receive a confirmation email from us immediately.

Payday Loan Business Profits - Consumer Loans, Car Title Loans... Profits and ROI

The following statistics represent our best estimates of the typical returns possible for one consumer loan location:

  • Monthly Volume for 1 store: 575 Loans
  • Average Loan: $300
  • Average Fee %:  15% of the face amount of the loan
  • Average Fee:  $15.00 per $100.00 Advanced
  • Total Monthly Loan Volume:  $146,625.00  ($255 X 575)
  • Total Monthly Fee Volume:  $25,875 ($45 X 575)

In many states and provinces lenders are legally allowed to charge an initial "set-up" fee of $5.00 to $10.00 the first time an applicant receives a consumer loan. This will add significant additional profits to your operation.

Here are a few examples of the revenue fees for car title lending in Florida. [Note: Many entrepreneurs are mis-informed about Florida car title lending opportunities! They underestimate the profit potential because of a lack of understanding Florida car title loan tactics and strategies - fully explained in our Course: "The Business of Lending Money to the Masses" available here: The Bible.]

    Example of Title Loan Fees in Florida
  • Embassy Loans (Miami)
  • $6,500 loan.
  • fees: $780 per month 14 months
  • $10,090.00 total cost.
  • $3590 revenue on $6500 14 months
  • nominal rate: 93.79 %
  • APR: 146.71%
    Example of Title Loan Fees in Florida
  • Lazano Car Title Loans Fort Lauderdale
  • $6500 loan
  • 2 year loan at $900/month
  • $21,600
  • $15,600 revenue on $6500 24 months
  • Nominal rate: 157%
  • APR: 339.44
    Example of Title Loan Fees in Florida
  • Marshall loans: Fort Lauderdale
  • $2500.00
  • $391 payment. NO PRINCIPAL loan doesn't get paid off.
  • Nominal Rate: 190.05%
  • APR: 483%

Here is an example of Utah Disclosures and Fee Schedule

    Example of Car Title Loan Fees in Utah
  • The APR for our car title loans in Utah ranges from 8.99% to 149.99%
  • Depending on your creditworthiness.
  • Loan amounts range from $2,000 to $25,000 with a term of 24 to 44 months.
  • Most loans will be charged an origination fee of 5% of the amount financed.
  • This means, for example, that a $2,000 loan will be charged an origination fee of $100.

Missouri Fee Schedule

    Typical Missouri Car Title Loan Fees & APR
  • The APR for title loans in Missouri ranges from 59.99% to 139.99%
  • Loan amounts range from $2,000 to $25,000 with a term of 24 to 44 months.
  • Most loans will be charged an origination fee of $75.
  • If any payment is 15 days late, we charge a late fee of 5% of the delinquent unpaid amount of the installment, up to no more than $50.00.

Example of Texas Car Title Loan Rates and Fees: Single Payment

Example of Texas Car Title Loan Rates and Fees: Single Payment

    Typical California Installment Loan Fee and APR Schedule
  • Representative Example of Installment Loan Fees:
  • 24 month Installment Loan of $2,501.00 would require 24 payments of $400.39.
  • APR: 186.07%*.
  • *APR may change based on first payment date selected. Administrative/Origination fee may be included in the calculation of finance charges.
  • 3% Origination Fee
  • $75 Application fee NOT in this example APR

These figures are based on our best opinion of existing stores, interviews with members of management of existing stores, statistics garnered from attendance at industry conferences and conventions. YOUR RESULTS MAY BE DIFFERENT!

Are you currently attempting to determine the advisability of starting a new consumer loan business? Perhaps you're an existing pawnshop, bail bonds company or check cashier considering the addition of a consumer loan profit center to your operation? What will your first year sales/earnings be? Guess? Certainly you can look at the demographics of your market area. Evaluate your competition, if any. Visit existing consumer loan operations in other markets. Read any trade periodicals, if they exist. Get a job in the industry for a while. But bottom line, WE DON'T KNOW WHAT YOU BRING TO THIS GAME!

This is our situation. We do not know what assets you bring to the equation. We all know hard work (luck) and timing can make all the difference in the world. Certainly the timing for the consumer loan industry has never been better. It is a product for which clients are clamoring. But what results you will achieve are beyond our control. See our Disclaimer Page

We know of consumer loan locations and Internet lenders offering payday loans, installment loans, car title loans, line-of-credit loan products doing much bigger numbers, particularly in large, metropolitan cities. And of course, a tiny town in the middle of no where will do less volume. Certainly the Internet offers the possibility of making your actual physical location a moot point. See our "How to Loan Money to the Masses Bible" for details.

Our experience is that after the initial "build" period subsides and your location matures, a leveling off somewhere between 285-335 customers at approximately 425-700 consumer loan transactions per month is typical. Again, this depends on where you're located and how well you embrace the Internet.

Annual Percentage Rates:
Our experience and research indicates the average payday loan is for a period of 8 days (the next payday for your client). If you were to advance $100 to your client, and the fee in your area is 15%, and you planned to hold your client's check until their next payday in 8 days, you would yield the following APR: $100/.85=$117.65 in fees with an annual return on YOUR MONEY of 805%! Installment loans are typically in the 110% - 800%+ APR range. Car title loan products? Again, 200% - 1000%+ APR's. These returns generally depend on the state or province you operate in, the licensing model you employ, your underwriting, collection skills... Again, all these subjects are thoroughly discussed in our Course: "How to Loan Money to the Masses Bible"

Get Started Now! Invest in our "How to Loan Money to the Masses Bible"
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 Payday Loan Business

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Trihouse Consulting
601 East Charleston Blvd. #100
Las Vegas, NV. 89104
702.208.6736

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