Topic Options
#2144885 - 09/05/17 04:40 PM Admin fees
Bbgreen Offline
Junior Member

Registered: 01/23/14
Posts: 29
Loc: Texas
Do any of you lend under $1000 and do you charge an admin fee?

Top
Fair Lending
              
#2144889 - 09/05/17 04:47 PM Re: Admin fees [Re: Bbgreen]
osucpa Offline
Diamond Poster

Registered: 05/13/11
Posts: 1231
Do you mean make loans for less than $1,000? On the consumer side we charge all loans a standard doc fee.

Top
#2145209 - 09/07/17 03:59 PM Re: Admin fees [Re: Bbgreen]
Bbgreen Offline
Junior Member

Registered: 01/23/14
Posts: 29
Loc: Texas
Yes, just curious we charge $100 for all consumer loans. We feel like sometimes a loan shark for a customer borrowing $500 then we charge $100

Top
#2145219 - 09/07/17 04:17 PM Re: Admin fees [Re: Bbgreen]
MScarn6942 Offline
Platinum Poster

Registered: 08/12/15
Posts: 596
Loc: Land Lacking in Lakes, IL
Yes, we charge $60 on any installment loan. Have you guys considered a percentage rather than a flat fee?
_________________________
"Pressure is something you feel when you don't know what you're doing" - Peyton Manning

Top
#2145341 - 09/08/17 11:52 AM Re: Admin fees [Re: Bbgreen]
Bbgreen Offline
Junior Member

Registered: 01/23/14
Posts: 29
Loc: Texas
We have not but thank you for the suggestion. We might look into it. Thank you!

Top
#2145349 - 09/08/17 12:11 PM Re: Admin fees [Re: Bbgreen]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 65058
Loc: Galveston, TX
You need to price your loans based on costs. You have hard costs and you have interest rate spread costs. It is very difficult to make up hard costs on a 9 month $500 loan. Making the loan affordable or look like it has a lower APR is not the issue unless you are facing usury issues.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Top
#2146151 - 09/14/17 05:05 PM Re: Admin fees [Re: rlcarey]
InFairness, CRCM Offline
100 Club

Registered: 11/01/10
Posts: 229
Loc: USA
Originally Posted By rlcarey
You need to price your loans based on costs. You have hard costs and you have interest rate spread costs. It is very difficult to make up hard costs on a 9 month $500 loan. Making the loan affordable or look like it has a lower APR is not the issue unless you are facing usury issues.


Those fixed costs on small dollar loans are why so many banks use credit cards for small loans.
_________________________
Opinions are strictly my own, and have nothing to do with my employer.

Top
#2146158 - 09/14/17 05:36 PM Re: Admin fees [Re: Bbgreen]
Rocky P Offline
Power Poster

Registered: 06/24/03
Posts: 6527
Loc: South Carolina
Agree!
ALSO - Even a small fee on a low $$ loan or short term loan can push the APR near the usury limits.
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.

Top
#2146821 - 09/20/17 11:05 AM Re: Admin fees [Re: Bbgreen]
Always In Training Offline
Diamond Poster

Registered: 07/11/06
Posts: 1042
Loc: Where the Green Grass Grows
You may also have state law limitations on how much your fee can be specifically.

Top
#2146823 - 09/20/17 11:07 AM Re: Admin fees [Re: Bbgreen]
waldensouth Offline
Power Poster

Registered: 11/07/01
Posts: 7930
Loc: FINALLY ABOVE the gnat line
An Overdraft line of credit is also a good way to fund these loans.
_________________________
"Once you learn to read, you will be forever free."

- Frederick Douglass




My Opinion Only.

Top