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 Q1 tax refunds will reduce demand for subprime loans..
One positive: Student loan forgiveness is a certainty. This will improve loan originations in late 2023+
Another positive: Employee pay increases likely will continue = increased applicant quality.
Small operators are struggling with cash flow & cost of capital issues.
Online First time payment defaults are 2.5X storefront. [we’re a relationship business.]
TAKEAWAY?
A unique window for Consolidation/Acquisition/Efficiency and “rollup”
opportunities exists today.
Efficient lenders should aggressively acquire competitors
Consolidate back office operations [CAC, Marketing, LMS, Underwriting, Servicing, Collections…]
I have buyers. I have sellers.
IF YOU HAVE THE DESIRE TO ACQUIRE OR DISPOSE OF YOUR B2C LOAN BUSINESS,
CONTACT JER AYLES: TRIHOUSECONSULTING@GMAIL.COM
IF YOU HAVE PORTFOLIOS TO SELL, CONTACT JER
AYLES.
702-208-6736 Cell 10 am 4 pm PDT
