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#2144885 - 09/05/17 08:40 PM Admin fees
Bbgreen Offline
Member
Joined: Jan 2014
Posts: 76
Texas
Do any of you lend under $1000 and do you charge an admin fee?

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Fair Lending
#2144889 - 09/05/17 08:47 PM Re: Admin fees Bbgreen
osucpa Offline
Diamond Poster
Joined: May 2011
Posts: 1,406
Do you mean make loans for less than $1,000? On the consumer side we charge all loans a standard doc fee.

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#2145209 - 09/07/17 07:59 PM Re: Admin fees Bbgreen
Bbgreen Offline
Member
Joined: Jan 2014
Posts: 76
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

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#2145219 - 09/07/17 08:17 PM Re: Admin fees Bbgreen
MScarn6942 Offline
Platinum Poster
Joined: Aug 2015
Posts: 756
Land Lacking in Lakes, IL
Yes, we charge $60 on any installment loan. Have you guys considered a percentage rather than a flat fee?
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#2145341 - 09/08/17 03:52 PM Re: Admin fees Bbgreen
Bbgreen Offline
Member
Joined: Jan 2014
Posts: 76
Texas
We have not but thank you for the suggestion. We might look into it. Thank you!

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#2145349 - 09/08/17 04:11 PM Re: Admin fees Bbgreen
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
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.
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#2146151 - 09/14/17 09:05 PM Re: Admin fees rlcarey
InFairness, CRCM Offline
Platinum Poster
InFairness, CRCM
Joined: Nov 2010
Posts: 919
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.
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#2146158 - 09/14/17 09:36 PM Re: Admin fees Bbgreen
Rocky P Offline
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Joined: Jun 2003
Posts: 7,650
Florida
Agree!
ALSO - Even a small fee on a low $$ loan or short term loan can push the APR near the usury limits.
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#2146821 - 09/20/17 03:05 PM Re: Admin fees Bbgreen
Always In Training Offline
Diamond Poster
Joined: Jul 2006
Posts: 1,115
Where the Green Grass Grows
You may also have state law limitations on how much your fee can be specifically.

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#2146823 - 09/20/17 03:07 PM Re: Admin fees Bbgreen
waldensouth Offline
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waldensouth
Joined: Nov 2001
Posts: 7,983
FINALLY ABOVE the gnat line
An Overdraft line of credit is also a good way to fund these loans.
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