3 Mistakes Micro-Lenders Make with Installment Loans

Published: Wed, 06/06/18

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Payday lending is still going strong but installment loan products are gaining ground as I pointed out in yesterday's email.

To the point:

1) Bigger loan principals require more intensive underwriting. You must employ at least one of the sub-prime "scrubbers" we list here: http://www.PaydayLoanUniversity.com/resources

2) You market to installment loan borrowers differently than payday loan borrowers. Payday customers simply walk into your store or search for "San Diego payday loan" and lay down for you. Installment loan borrowers are a bigger challenge. They are generally more sophisticated. And, they're inundated with direct mail DAILY by your competitors.

3) Don't simply "look" at income when making installment loans. Ability to pay - like it or not - is an issue. Again, there exists some pretty cool tools provided by the vendors on our resource page linked to above.

Good hunting...

Jer@TrihouseConsulting.com