"Wait a minute, what's the annualized interest rate you just said?!"

Carter, who was immersed in writing about the "Twilight Love Hotel" project, suddenly raised his head and looked directly at the manager of Black Flag Commercial Bank, the manager of ck flag loans. Carter almost thought he heard wrongly:

"Didn't I say that the interest rate on this small loan can be lowered? Now that the federal benchmark interest rate has dropped, there is no need for it to be so high!"

"However, this is not high! It does not meet Connecticut's usury standards. Compared with peers, such as payday loans, our interest rate standards are more than 50 percentage points lower than theirs. Of course, this is just Connecticut.

of payday loans.”

"Yes, considering that college students do not have stable jobs, our risk interest rate may be raised a little higher, but in comparison, I think this interest rate standard is very reasonable!"

After the credit company manager finished speaking, the bank manager also stood up and expressed his support for their interest rate standards:

"The current base interest rate is about 9%, plus the risk interest rate of 14%, plus the profit margin, this is really not high! Mr. Black, you must know that even payday loans require proof of income, and

We don’t need it yet.”

"Let's lower it a bit. After all, we are facing the campus market now and cannot compare with payday loans. They."

Carter sighed and said he was not envious, that would be a lie.

What businessman can resist this temptation?!

The average annualized interest rate is 400%. In some countries or regions, the compound interest model can be used, and the annualized interest rate eventually exceeds 1000%. This profit is not terrible!

But payday loans are not something that I can do now. In today's United States, including the United Kingdom and other countries, there are more payday loan stores on the street than McDonald's.

Just like China's small loans in previous lives were often funded by multiple institutions, payday loans are also a huge system, and I currently don't even have the qualifications to join this system!

Advance America, the largest payday lender, has about 2,000 stores in the United States; the second largest financial institution, Financial Corporation, has about 1,300 stores. In addition, it has more than 300 stores in the United Kingdom and 400 stores in Canada.

The channel of multiple stores; the third largest institution, ace cash express, is the largest check cashing store in the United States, and the number of store terminals in the United States also exceeds a thousand; the fourth largest institution, cash america, is this thing. American pawn loan

Big boss in the field

Counting other zero-to-zero institutions, without strong channel support and without huge capital investment, it is obvious that a hugely profitable business like payday loans cannot be touched by oneself.

Doing campus credit business is just like the old saying, taking advantage of loopholes!

Because payday loans are so widespread, regulations vary from place to place. For example, Connecticut has stricter regulations and interest rates are not very high. In order to offset the risk of possible bad debts, applying for a payday loan in Connecticut requires a source of income.

Proof. In places like Alabama or Mississippi, because payday loan interest rates are extremely high, applicants often only need a bank card.

"They are old brands after all. What we have to do now is to use their differences in regional rules to penetrate the market in a refined way. I know that from the traditional risk model, the default risk of the college student group is very high, but

As a member of the college student group, I believe in their credit! In particular, our loan records are directly tied to the bank credit system. Once they default, their personal credit reports will have negative records from black flag commercial banks.

, they won’t take such a big risk for such a small amount of money.”

"So, I think the risk interest rate can be lowered! Let's lower it by another 4 percentage points. The annual interest rate is designed at 30%. You also know that college students do not have fixed jobs, which puts excessive repayment pressure on them. To be honest, it is too cruel! In

The channels, the total amount of funds, and even the popularity are not as good as the largest payday loan on the market today, so the only thing we can do is word of mouth! The word of mouth of a conscientious loan!"

These words of conscience made Carter blush a little.

Think about the common annual interest rates of small loans such as 23.4% and 23.65% that I was scolded by in my previous life. Today’s 30% is very conscience! From an American perspective, it’s really very conscience!

"Powell, Manning! You have to know that Payday has actually entered a very weird cycle! You should have studied their default rate, right?"

"Of course, but... I don't understand what you want to express? Payday loans themselves face customers with almost no credit rating, and their default rate is naturally high!"

“But no one has ever thought about whether it’s the interest rate that keeps the default rate so high?!”

Carter picked up the cigarette case on the table and threw it to the two of them.

"Because the targeted customers have a high risk of default, the interest rates are high and the repayment cycle is even shortened. In such a short period of time, any customer who has an intermediate loan will face a default if they make any unplanned expenditure. Their credit is not good to begin with.

If there is a default, the lender will continue to increase risk interest rates, making it more difficult for people to repay, and even after wages are paid, there will be no room for any unplanned expenditures."

"Don't you think this is a vicious cycle? The further it goes, the higher the interest rate; the higher the interest rate, the higher the risk of default, and then it starts over and over again. It has developed to this day, yes! They have so many stores that you can walk on any street

, I wish there could be two or three payday loan stores on one street, but have you ever observed those people who took out loans?"

"Who dares to use this kind of loan if they are not desperate? Do you dare? Or do you?"

The two managers who asked this question directly were speechless.

Of course they don’t dare, and of course, they don’t need to!

To put it cruelly, the audience for payday loans is almost the poorest people at the bottom of the United States. The so-called elites who designate this kind of interest rate will always only believe in their theoretical model:

Their credit is too bad, so I have to increase the interest rate!

But almost no one has ever thought about whether this kind of interest rate setting is reasonable. Even if they want to reduce risks, what is their method? Shorten the repayment cycle

"They have huge channel support, which allows them to reach countless customers. But we are different. We do not have such strong channels and so much funds. Our current vision is only the three-thirds of an acre of land in front of us!"

"We have to make our customers dare to come to us for loans! After using it once, they dare to use it a second time! Only in this way, the 60 million US dollars will not lie in vain and depreciate! From the beginning, you need to change

Thinking, don’t always follow tradition! Especially you, Manning, do you understand? Our ‘put to use’ is a brand new credit product, just like its name, people can take it and use it whenever they want.

money!"

"Okay, you go out and think about what I say first. The 30% is the result of my compromise. In my subjective opinion, I think this interest rate is too high! You can discuss it later.

Give me the plan."

"Powell, please stay here! How is the situation regarding investment in defense stocks?"

emmm, I haven’t chatted with you all for a long time. First of all, I would like to thank "Little Flying Cat 001" for the New Year reward. Combined with some scattered ones before, I will add an update! I must add an update!

Secondly, I would like to wish you all a happy old age again. I hope that in the new year, all your wishes will come true and your career will be successful!

Of course, in the current market environment, maintaining profitability may be more important. I have recently read the annual reports of some institutions, and they are generally pessimistic, but our lives should be full of optimism~

The last few chapters are transitional chapters, and we are about to enter the next big chapter, which is to use Yale as a starting point, use this platform, and use the policies of the times to grow rapidly!
Chapter completed!