We've worked with hundreds of lenders over the last 10+ years. These lenders have ranged in size from new startups to a fortune 500 company. This experience has put us in a somewhat unique position to see and in some cases experience the problems that can be caused when a lender selects a software not suited for their long term success.

Obviously we are going to be a bit biased and tell you we have the best software available, so will the other software companies out there. Put all that aside and focus on the important questions you should be asking. I once heard the quality of the questions you ask in life will determine the quality of your life.

I think this can be particularly true when choosing your payday loan software.

Below is a list of important questions you should considered and a brief example of what I have seen happen to others when this question(s) weren't fully considered by others.

  • The very first question should be, "where do I want to be in the next 2-5 years, how do I want to grow my business?" One of the most painful experiences that comes to mind is a lender who spent $29,000 to buy a windows based software for their 12 title loan stores. 9 months after that purchase, they decided to start offering payday loans. The software they selected didn't have a good solution for payday loans (they were in texas for those of you familiar with the cso/cab model) essentially wasting that $29,000 investment.
  • Will you be an online payday loan operation, a "brick-n-mortar" or a combination? It's not uncommon for a brick- n-mortar at some point to start offering online loans to their customers. It is less common but some online lenders eventually open some brick-n-mortars. Either way it is important to know you will have not only the flexibility to move in either direction your business grows. This way you are not stuck in a difficult position trying to manage your business. I have seen many lenders using multiple software platforms to manager their stores and their online lending. The biggest problem is keeping track of customers, their loan status and making certain the customer doesn't have multiple loans with that same lender.
  • Can you easily get a complete copy of your data out of the software you are thinking of using? The biggest problem for lenders is moving data from one software to the next. There is a payday loan software company out there that literally tells lenders who want a copy of their data to move to a new software that it is impossible to get complete data imported into another software. This simply is not true.

    Other software companies make it a huge hassel to get the data often requiring several requests to get a complete data file. Some companies put the burden on the lender to know what to request to be included in their data file. Saying, "Give me all my data" isnt good enough for some reason. Then they charge the lender $2,500 dollars for their data and if the lender finds they didn't request all the data they need, this company will charge another $2,500.00 for another data file.

    When interviewing sodftware companies ask then who owns the data, what is their policy for getting copies of data, if they can show you a sample data export file and make certain their agreement matches what they told you.
  • What lending model will your business use? will you use choice-of-law, get licensed state-by-state, a tribe/sovereign model, CSO/CAB, offshore, province, even multiple license models? Recently a lender came to us wanting to operate under a sovereign nation model, she wasn't real unhappy with her current software but they couldn't support her new business model. She was forced to change business models because of state law changes. Her software couldn't meet her new needs so she was forced into buying new software.
  • A website is essential in todays market, will the software company build it? Do they use cheap looking website templates, Will it be mobile compatible. Some software companies force you to deal with website designers on your own. This can cause several headaches and delays for your business. Additionally the cost of design most likely will be much higher than if it was designed by the software company.

    The quality of your site design says a lot about your company. You do not want a cheap template the software company uses for its lenders. Not only is this bad business but it will also hurt you if you ever decide to start doing search engine optimization (seo)

    Recent studies put 30% of a payday lenders website traffic on mobile devices. If you have a site that is not mobile compatible you will be loosing customers and profits.

These are just some of the many questions lenders should be asking themselves when looking for a software.