Payday And Paycheck

Store: Books, Case Studies, Reports...

Purchase Reports

Learning Center
Payday Loan Industry
Payday Training Manual
Payday Seminars
Payday Newsletter
Payday Loan History
Payday Profits
Internet Business
Our Contact Info
Texas CSO Model
Payday Loan Franchises
Boot Camp

Payday Training Bible
Car Title Loan Biz
Scrap Gold Biz
Payday Loan University
Boot Camps
Payday Loan Blog
Scrap Gold Biz

Payday Loan Legislation
Payday Loan Legislation

For Payday Loan Operators
Payday Loan University
Check Guarantee Program
Text Messaging Strategy
Payday Training Manual
Payday Loan Machines
ATM Cards
Payday Loan Software
Offshore Payday Loans
Gramm-Leach-Bliley Act
Compliance Training
Call Center Solution
Payday Loan Leads

For Payday Loan Investors
Earn 30% on Your Money
Internet Business

Other Stuff
Success Stories
Frequently Asked Questions
Payday Loan Alternatives
Check & ACH Verification
Cash Advance
Payday Loan Business > Offshore Model

Offshore Payday Loan Model

Offshore Payday Loan Company. The Alternative Financial Services (AFS) industry, typically referred to as payday loans, short term non-collateralized loans, various forms of installment lending, etc., continues to evolve from both a regulatory and an operational perspective.

In the early days, many Lenders operated under what was referred to as a "bank rate exportation model" and funded loans to residents of virtually all states. These payday loan lenders literally exported usury rates across state lines much like credit card companies do. When federal bank regulators modified the reserve requrements, payday loan lenders began to explore alternative approaches for meeting consumer demand for their products and services.

As regulations changed, so did the payday loan operational model. Driven by the thirst consumers have for short-term loans to solve temporary financial challenges, Lenders scrambled to employ creative approaches to meet this continuing demand.

Many payday loan Internet lenders have migrated to the "choice of law" model, exporting the usury rate of the state the Lender is licensed in to the state in which their customer resides. This approach is controversial and is being challenged in the courts. State regulators debate this strategy with payday loan legal and compliance counsel regularly. To our knowledge, no federal courts have yet decided this issue. But there are certainly more than a few state courts, Pennsylvania for example, that have decided in favor of a state attorney general's right to put payday loan Internet Lenders out of business when they lack the appropriate state license.

Other payday loan Internet Lenders have implemented the "state by state" licensing model. They obtain a license in each state they want to service. The challenge with this model is that several states don't have favorable legislation allowing an online Lender to achieve their profit goals. Additionally, it's expensive and time consuming to apply for and receive a payday loan license for each state a payday loan Lender chooses to operate in.

Internet payday loan Lenders needed to find a better solution!

Payday loan Internet Lenders realize they need a long term, reliable model that enables them to earn a profit, meet the product demands of their customers, and navigate the uncertainty of future state and federal regulation.

And so the "Offshore Payday Loan Model." was created!

A Lender creates, or invests in, an offshore corporation, typically an IBC in a country having favorable payday loan or short term lending regulations. Through their relationships with banks and other supporting vendors, they lend to customers in the US and/or Canada, Australia, the UK, etc. thus exporting the allowable rates and rollover rules from that offshore location. Some of the more common countries for doing this are Belize, Costa Rica, Turks and Cacaos and the US Virgin Islands.

Of course, once an offshore Lender has a corporate structure in place by using competent legal counsel, there are other other issues to address. The general opinion of both experienced legal counsel and Lenders is that ideally, you'll have as many pieces of this puzzle offshore as is practical. This would include your call center operations, server hosting facility, and more.

With the help of the right resources, all of this can be accomplished relatively easily and quickly. The total setup time is typically 2-3 months. Cost varies depending on your legal counsel. For the entire process, including corporate setup and call center services setup, a Lender can expect costs to range from $30,000 to $125,000 (US). The right resource can help, not only with these items, but also with 3rd party vendor relationships such as ACH providers, credit bureaus, lead providers, collections, ID validators and consulting with you as your portfolio grows.

As with any loan portfolio, domestic or offshore, the resources you choose to work with will have a tremendous impact on your portfolio's performance and velocity for achieving profitability. A complete understanding of the industry is crucial as is the knowledge required to analyize a portfolio's performance based on underwriting, payday loan lead quality, the amount of capital you've invested, etc.

Ready to explore the Payday Loan Offshore Model?

Ready to start a small dollar loan business?
How Start Cash Advance Business
Order Now

Trihouse Consulting
601 East Charleston Blvd. #100
Las Vegas, NV. 89104
View Jer Ayles-Ayler's Trihouse      profile on LinkedIn

Payday Loan Industry Payday Home | Payday Loan Industry | Payday Training Manual | Payday Seminars | Payday Newsletter | Payday Loan History | Payday Profits | Payday Loan Alternatives | USA Payday Legislation | England Payday Legislation | Canada Payday Legislation | Australia Payday Legislation | Payday Training Manual | Payday Loan Machines | ATM Cards | Payday Loan Software | Collections | Gramm-Leach-Bliley Act | Stores for Sale | Earn 30% on Your Money | Disclaimer | Frequently Asked Questions | Our Contact Info | Borrow $500 Now | Vendors & Suppliers | Text Messaging Strategy | Success Stories | Purchase Cash Advance Reports | Payday Loan Internet Report | How to value PDA Business | CSO Credit Services Organization | California Payday Loan License Application & Laws | Michigan Payday Loan License Application & Laws | Payday | Payday And Paycheck | Payday Loan | Payday and Paycheck | Payday Loan | Payday | Training | Payday Loan | Payday Loan Industry | Buy and Sell Scrap Gold | Scrap Gold Biz Startup |