Speaker to Animals wrote:I have been thinking about how difficult it might be to start up a microfinance business. The way things are going, banks already priced themselves out of most Americans business.
Payday check cashers and lenders serve a purpose, but what a lot of people seem to need are small loans (like less than $200 and even down to about $50). Charge a flat fee for dealing with the books and running the business, and see where it goes.
Just enough for that next bag of weed, heroin, method, or whatever their drug of choice is?
They're good for repayment, trust them.
"People don't like to be meddled with. We tell them what to do, what to think, don't run, don't walk. We're in their homes and in their heads and we haven't the right. We're meddlesome."
Postby Speaker to Animals » Wed May 03, 2017 10:03 am
Ph64 wrote:
Speaker to Animals wrote:I have been thinking about how difficult it might be to start up a microfinance business. The way things are going, banks already priced themselves out of most Americans business.
Payday check cashers and lenders serve a purpose, but what a lot of people seem to need are small loans (like less than $200 and even down to about $50). Charge a flat fee for dealing with the books and running the business, and see where it goes.
Just enough for that next bag of weed, heroin, method, or whatever their drug of choice is?
They're good for repayment, trust them.
For food, to pay the electric bill, to get medicine for their baby, gas in the car..
If they default on a $50 loan, they don't get to ask for any more loans. I am sure microfinance businesses would share that information just as payday loan businesses do.
Plus the risk is pretty low. You are going for a large number of loans to profit from the transaction fee. If you charge a flat fee of like $10 per month to manage the loan, you'd prefer to have lots of small loans, each of which comes with relatively low risk.
Speaker to Animals wrote:I have been thinking about how difficult it might be to start up a microfinance business. The way things are going, banks already priced themselves out of most Americans business.
Payday check cashers and lenders serve a purpose, but what a lot of people seem to need are small loans (like less than $200 and even down to about $50). Charge a flat fee for dealing with the books and running the business, and see where it goes.
Just enough for that next bag of weed, heroin, method, or whatever their drug of choice is?
They're good for repayment, trust them.
For food, to pay the electric bill, to get medicine for their baby, gas in the car..
If they default on a $50 loan, they don't get to ask for any more loans. I am sure microfinance businesses would share that information just as payday loan businesses do.
Plus the risk is pretty low. You are going for a large number of loans to profit from the transaction fee. If you charge a flat fee of like $10 per month to manage the loan, you'd prefer to have lots of small loans, each of which comes with relatively low risk.
I actually wondered for a long time why there wasn't a website for this yet.. then I remembered that it would actually be useful, and thus, not allowed in our system.
Speaker to Animals wrote:I have been thinking about how difficult it might be to start up a microfinance business. The way things are going, banks already priced themselves out of most Americans business.
Payday check cashers and lenders serve a purpose, but what a lot of people seem to need are small loans (like less than $200 and even down to about $50). Charge a flat fee for dealing with the books and running the business, and see where it goes.
Just enough for that next bag of weed, heroin, method, or whatever their drug of choice is?
They're good for repayment, trust them.
For food, to pay the electric bill, to get medicine for their baby, gas in the car..
If they default on a $50 loan, they don't get to ask for any more loans. I am sure microfinance businesses would share that information just as payday loan businesses do.
Plus the risk is pretty low. You are going for a large number of loans to profit from the transaction fee. If you charge a flat fee of like $10 per month to manage the loan, you'd prefer to have lots of small loans, each of which comes with relatively low risk.
Damn, $10/month to borrow $50... 20% a month. 240%/year, for "the risk is low"...
Congratulations, you're now "Chmeee", which I guess translates to "charges huge fees keeping them poor, perpetuator of poverty".
"People don't like to be meddled with. We tell them what to do, what to think, don't run, don't walk. We're in their homes and in their heads and we haven't the right. We're meddlesome."
Postby Speaker to Animals » Wed May 03, 2017 10:44 am
Ph64 wrote:
Speaker to Animals wrote:
Ph64 wrote:
Just enough for that next bag of weed, heroin, method, or whatever their drug of choice is?
They're good for repayment, trust them.
For food, to pay the electric bill, to get medicine for their baby, gas in the car..
If they default on a $50 loan, they don't get to ask for any more loans. I am sure microfinance businesses would share that information just as payday loan businesses do.
Plus the risk is pretty low. You are going for a large number of loans to profit from the transaction fee. If you charge a flat fee of like $10 per month to manage the loan, you'd prefer to have lots of small loans, each of which comes with relatively low risk.
Damn, $10/month to borrow $50... 20% a month. 240%/year, for "the risk is low"...
Congratulations, you're now "Chmeee", which I guess translates to "charges huge fees keeping them poor, perpetuator of poverty".
Dude, I was just throwing a number out there. I don't know what you are supposed to charge. For it to work, you can't charge interest. There has to be a flat fee. Make it $2. I don't know. I was just thinking about the viability of the model in the US now.
For food, to pay the electric bill, to get medicine for their baby, gas in the car..
If they default on a $50 loan, they don't get to ask for any more loans. I am sure microfinance businesses would share that information just as payday loan businesses do.
Plus the risk is pretty low. You are going for a large number of loans to profit from the transaction fee. If you charge a flat fee of like $10 per month to manage the loan, you'd prefer to have lots of small loans, each of which comes with relatively low risk.
Damn, $10/month to borrow $50... 20% a month. 240%/year, for "the risk is low"...
Congratulations, you're now "Chmeee", which I guess translates to "charges huge fees keeping them poor, perpetuator of poverty".
Dude, I was just throwing a number out there. I don't know what you are supposed to charge. For it to work, you can't charge interest. There has to be a flat fee. Make it $2. I don't know. I was just thinking about the viability of the model in the US now.
Well, we already have this in most bank accounts with direct deposit. Fifth Third lets me advance almost an entire check until the next one comes in, for a fee.
Ph64 wrote:
Damn, $10/month to borrow $50... 20% a month. 240%/year, for "the risk is low"...
Congratulations, you're now "Chmeee", which I guess translates to "charges huge fees keeping them poor, perpetuator of poverty".
Dude, I was just throwing a number out there. I don't know what you are supposed to charge. For it to work, you can't charge interest. There has to be a flat fee. Make it $2. I don't know. I was just thinking about the viability of the model in the US now.
Well, we already have this in most bank accounts with direct deposit. Fifth Third lets me advance almost an entire check until the next one comes in, for a fee.
Postby Speaker to Animals » Wed May 03, 2017 10:58 am
GrumpyCatFace wrote:
Speaker to Animals wrote:
Ph64 wrote:
Damn, $10/month to borrow $50... 20% a month. 240%/year, for "the risk is low"...
Congratulations, you're now "Chmeee", which I guess translates to "charges huge fees keeping them poor, perpetuator of poverty".
Dude, I was just throwing a number out there. I don't know what you are supposed to charge. For it to work, you can't charge interest. There has to be a flat fee. Make it $2. I don't know. I was just thinking about the viability of the model in the US now.
Well, we already have this in most bank accounts with direct deposit. Fifth Third lets me advance almost an entire check until the next one comes in, for a fee.
But you also have other fees just to keep that account that don't really work out for the poor.
Just thinking about it, the $10 fee is pretty high. I agree. But when you actually add up the costs of a bank, for most of the working poor, banks don't make any economic sense compared to payday center. But payday centers only seem to do more substantial loans based on collateral.
The lolbergs explained why banks don't make any damned sense for the working poor.
I think a better solution for what most people need is simple microfinance. They often only a little bit of spending money for a week or two.
There is also the fee that comes with having little to no money in your account, which most bank charge. Sometimes, you will get with an atm fee for using a different ATM, and then on top of that your bank will charge you a second ATM fee.
Speaker to Animals wrote:
Dude, I was just throwing a number out there. I don't know what you are supposed to charge. For it to work, you can't charge interest. There has to be a flat fee. Make it $2. I don't know. I was just thinking about the viability of the model in the US now.
Well, we already have this in most bank accounts with direct deposit. Fifth Third lets me advance almost an entire check until the next one comes in, for a fee.
