Growing Payday Loan Industry Turning to PDL Marketing to Cut Costs and Improve Application Rates.
The number of U.S. payday-loan outlets doubled to 6,000 during the nineties and predictions now hold that the industry will grow by another 600 percent by the end of the current decade.
With the competition to serve the short-term borrowing needs of the American public heating up, there is growing pressure within the industry to become more efficient in attracting quality borrowers, while keeping fees low and profits high.
That's why the industry has turned to Delaware-based PDL Marketing for help in finding qualified payday loan applications and keeping operating costs low."On average, we're slashing marketing costs for these lenders by 58%," says Don Nusser, Sales Director at PDL Marketing.
"And not just by lowering the cost of generating applications.
We're also able to take the same marketing budget and dramatically drive-up the number of new applications it can generate for our lending customers.
We have taken several clients from $100,000 a month in new loans to over $3 million in just 6 months."PDL offers lenders three types of marketing services:Lead Generation Services, selling quality, unique applications for just $18 per lead. Web Development Services: Designing better-looking and better-functioning websites that have proven to double and triple lenders' conversion rates. PPC & SEO Management Services: building traffic to existing sites through a proprietary online marketing system. In a typical payday loan transaction, the borrower will write a check to the lender for the loan amount, plus the lender's fee.
The lender agrees to hold the check until the customer's next payday, up to 30 days. For example, if borrower requires $100 he writes a check for the $100, plus a fee of say, $22.
The lender immediately deposits $100 in the borrower's checking account. At the borrower's next payday, say, 15 days, the lender cashes the check and collects the fee.Some may point to high interest rates charged in this type of transaction. In the example above the APR is 535%.
However, this is not out of line with what banks typically charge for small-dollar transactions. For instance a $1.50 fee on a $100 ATM transaction, would be 548% APR and a $22 Non-Sufficient Funds bounced check fee on a $100 check would be 8,030% APR.Not only are traditional banks just as likely to charge high fees for small, short term transactions, they are much more likely to turn their backs on the type of borrower who relies on payday loans to pay bills while avoiding bounced checks or loss of basic services.
The banking industry often will not even open branches in lower income areas where a payday loan borrower typically resides. The average household income of a payday loan applicant is under $25,000 according to industry surveys."These finance companies are picking up the slack left from the savings and loans," says Arthur B. Kennickell, an economist for the Federal Reserve Bank.
"It is part of the continuing restructuring of the industry."
Complaints among borrowers are few because consumers understand what they are doing and are doing it willingly for the service given.PDL Marketing steps in to create efficiencies in how borrowers and lenders meet.
For more information, please visit http://www.pdlmarketing.com.
Self-Liquidating Loans - Fact or Fiction?
FICTION! There is no such thing as a self-liquidating "LOAN." If you walk into a bank and ask for a self liquidating loan, they'll look at you as though you were nuts! You may see ads promising - - Self-Liquidating "LOANS!" - Investment Capital Overnight! - Your "LOAN" has been Approved! - BORROW Money And Never Pay Back! - etc. A self-liquidating "LOAN" is fiction. You will never get a loan that you willnever have to pay back from anybody. You need to be very careful when you are presented with the opportunity to get "money for nothing!" A true, self liquidating "LOAN", standing on it's own, is a pipe dream - it's perpetual motion. A loan that pays itself off is of NO benefit to the lender -so, Why Would They Do It? The answer is simple - they WON'T! Con men typically ask for up-front fees to get people a Self-Liquidating Loan."Your "Loan" Has Been Approved" is their typical ploy.
Since there is NO such thing as a Self-Liquidating "Loan" this should be a tip off that all theywant...
Self-Liquidating Loans - Fact or Fiction?
Loans > Self-Liquidating Loans - Fact or Fiction?
Interest Only Loans
Interest only loans are ?interest centric'. In, this kind of loan a borrower only pays the interest due on the principal balance. In such cases, the principal balance does not change over the set term. After the expiry of the interest only term, the borrower has an option to go for the following:
? The borrower can covert the existing loan to an amortized loan wherein he makes regular payments on the principal and the interest.
? The borrower can also enter what is known as interest only mortgage, wherein he can make the payment on the principal amount.
The interest-only period varies from one country to another. In the United States, the interest-only period, typically, is for five or ten years.
This essentially means that if a borrower has to pay a loan over a period of thirty years, he can only go for the interest-only option for the first five years or first ten years. This is dependant on the choice he/she makes and the money lending...
Interest Only Loans
Loans > Interest Only Loans
Interest Only Loans
Interest only loans are ?interest centric'. In, this kind of loan a borrower only pays the interest due on the principal balance. In such cases, the principal balance does not change over the set term. After the expiry of the interest only term, the borrower has an option to go for the following:
? The borrower can covert the existing loan to an amortized loan wherein he makes regular payments on the principal and the interest.
? The borrower can also enter what is known as interest only mortgage, wherein he can make the payment on the principal amount.
The interest-only period varies from one country to another. In the United States, the interest-only period, typically, is for five or ten years.
This essentially means that if a borrower has to pay a loan over a period of thirty years, he can only go for the interest-only option for the first five years or first ten years. This is dependant on the choice he/she makes and the money lending...
Interest Only Loans
Loans > Interest Only Loans
Growing Payday Loan Industry Turning to PDL Marketing to Cut Costs and Improve Application Rates.
Spanish Speaking Construction Workers Have Someone In Their Corner for Safety
The high accident rate among U.S. Hispanic Construction Workers is beginning to change thanks to the actions of Maria Isabel O'Connell, of SAFETRAN, LLC. The well known Bilingual safety consultant and workplace activist will ensure Latinos arrive home safely everyday. You'll often find Maria out on the jobsite with her workers on bridge, highway, pipeline and general construction projects throughout the Bay Area and Central California. Originally from Guadalupe Victoria, Mexico, this hardworking...
Growing Payday Loan Industry Turning to PDL Marketing to Cut Costs and Improve Application Rates. Loans glasses
Loans > Spanish Speaking Construction Workers Have Someone In Their Corner for Safety