FAQ

Payday Loans? Car Title Loans? Installment loans? Small dollar credit loan operator? How do you get started? How do you improve your existing lending business?

Our Manuals & Courses offer insights and answers to all these questions and issues!

These are some basic questions you should be asking yourself. Think of this as a “Self Audit.” It’s just the beginning…

  • What is your primary product/service?
  • How many clients do you serve per week?  Month?
  • How many NEW customers per week?
  • What is the $$ Range of your services and products?
  • How many clients have you served since establishing your business?

 

  • How long have you been in business?
  • Does your Database contain a list of active and inactive customers?
  • Does your average customer come back after the first purchase?
  • How have you built your business most successfully? In other words, what do you think has worked best for you in the past? In regards:
  • Building your customer transaction volume?

 

  • Re-marketing to previous customers?
  • Minimizing your fixed and variable costs of doing business?
  • Minimizing defaults? Note that too low a default rate can be just as injurious to your lending business as too high.
  • Who is your competition? Do you regularly “mystery shop” them? By phone and face-to-face?
  • How does your competition get customers?

 

  • Do you have a website? If not, GET ONE! (Even a basic WordPress website works great.) How does your website look on your customer’s phone?
  • Do you have a Google Places listing claimed? Twitter, Facebook, Pinterest, Yelp… whatever the newest flavor is?
  • What organizations do your customers belong to?
  • What demographic sub-categories do your customers come from?
  • What other businesses do they patronize?

 

  • How much can you afford to spend on marketing over the next 90 days?
  • Percent of net revenue?
  • Percent of gross sales?
  • Of the clients you have, where do most of them originate from?
  • How much more business could you comfortably handle without hiring more staff?
  • How much of your current business comes from referrals?

 

  • Have you ever given away free samples of your product/service? Discounts? Coupons? $20 off… Free 1st time…
  • How big is the market area you serve? Households? Head-count?
  • What is the average income your typical client?
  • Do most of your clients own a home or rent?
  • After a new customer buys the first time, do you have a follow-up procedure of any kind?

 

  • Are you price competitive? (Again, “mystery shopping…”)
  • How often do you communicate with your customers? Do you have a list you can text, email, Tweet…
  • How much did you spend last year on advertising?
  • How much do you gross for every $100 spent on advertising?
  • What is the life-time value of your customer?

 

  • Do you have any special incentives for multiple purchases?
  • Do you regularly solicit customers to return?
  • How large is your staff? Divide this by your monthly transaction count. What’s the ratio?
  • What kind of product/service guarantees can/do you offer? Your competition?
  • Have you reached out to complementary businesses for cross-marketing? (For small dollar lenders: car repair, tire replacement, auto rental, transmission shops…) Businesses that want you to enable their customers to access $$ and pay the bill)

 

  • Describe the result your product/service achieves for your clients.
  • Regarding your competition, how much market share do you get?
  • What professional organizations do you belong to?
  • How much information do you have on your product? How well do you really know your lending product?
  • What advantages do you perceive you have over the competition?

 

  • Why should the client buy from you?  What makes you special >  better?
  • Does your (LMS) Loan Management System provide you with the answers to any of these questions? If not, DUMP IT!