It’s not what you do, it’s who you do it with. We’ve gotten to know our customers, often on a personal level. We’ve seen the heartaches and tribulations, the achievements and successes.
In the media and from our government, payday lenders are painted as predators. Like any industry, there’s good and bad. If someone has never taken a payday loan, they might not understand how life can put a person in a position where it’s a smart move. If it’s the difference between paying a speeding ticket so someone can renew their license and continue with their livelihood, get $200 in their bank account so they don’t wrack up $90 in nsf fees from bounced cheques or have an awesome night without worries with a friend they’re celebrating with… the only person who can choose if the fees from the payday lender are worth it is the actual person doing the transaction.
We’re in the lending business. We see value in what we provide and in our customers. For years, we tried various ways to help our customers out of the cycle. We’ve succeeded and failed. Often, customers would have a term loan and, whether a day or six months later, eventually take out another payday loan. The government tried to improve the borrowing experience with new regulations. In almost all cases, the regulations have not provided a better experience for the client. We see a pattern of customers taking more payday loans from more lenders instead of (I’m guessing) the intended effect.
There will always be a place for small loan lending. So how can we do it better? We have a community of customers who reached out to us, and us to them. Respect and trust are a two way street. We were inspired to lend in a completely new manner. Give the power to the people.
Savings Savings Savings
Being a club member saves money. We can’t offer the club to everyone. If a person takes out various loans and doesn’t pay their bills, they opt to take out loans and then file a proposal or bankruptcy, the trust isn’t there. As a lender, club loans are less profitable than a payday loan. But if we have a greater volume of awesome customers with zero delinquency, we can do it. And because our rates are so low, we’re not bound by as much crimson tape. And because we’re freer, we can pass that freedom on to our valued customers.
On a traditional payday loan of $1000 borrowed every two weeks, a customer would pay $3900 in interest over a year. This doesn’t include any extra fees some lenders add such as insurance.
On a club loan on the same borrowing amount and pattern, our club customers would pay $546 in interest. Including all club dues for the year, on the same lending pattern, our club customer would invest $1206!!! That’s a savings of $2964!!
This is why it’s so easy to actually get out of “the cycle”. $21 vs $150 in interest every two week pay period -a lot more is now able to go to principal and actually chew a loan down. As our club loans aren’t governed by the same rules, you and I both have more liberty with our cash management. Take the lowest amount you think you need so you pay the least amount of fees for the least amount of days. If you need more, come see us. You’re lending for less days at less fees. Yay!!!
Education
As kids, my brother would pour over the stock market and baseball stats. I’d be outside in piles of wood and the forest pretending to be a child detective. While I had/have a fantastic imagination, numbers weren’t my forte. I saved as a kid (probably because of my environment) but as soon as I was out on my own, that went out the window. We’re not taught budgeting in school and even if it’s taught in our childhood home (which it often isn’t), we all learn differently.
Over the years, we’ve had many clients say, “If I could just give you my money to invest…” We’re excited to offer financial education and literacy in guest speakers (some are experts in their field, some are clients who have changed their relationship with the greenback) and one on one advice, tailored to your situation.
Social Events
Often when someone is trying to pay school fees, soccer registration and buy groceries, they have no choice but to let the fun go. We’re putting the fun back in funding. Getting out and engaging is an important part of life, meeting new people, connecting with friends. That’s why the club is doing social events. We had a blast at the Flames game with you, our clients. Hockey not your thing? This is your club! Let us know what you want to do!
