What’s the relationship that is ideal interest charged and amount of loan loss help?

Venture Goal:

The task objective is: to produce an inexpensive and scalable alternative pay day loan product. To make certain that: individuals residing on lower-incomes can possibly prevent or exit a harmful financial obligation period and commence to create assets that lead them toward a sustainable livelihood.

Design Question: exactly What system or item models would be best in a position to attain the target above? Project Scope:

Ecological Scan and Market Feasibility (roughly 20% of task): the objective of this goal would be to investigate the presence and success of other lending that is alternative, therefore the feasibility of this two choices described above. The consultant is responsible to within this objective.

Confirm current Calgary market size and earnings information (if available) for mainstream payday financing. >Conduct an advanced level scan|level that is high of payday lending alternatives currently offered in North American cities (eg BankOn, Van City Fair & Fast Loan, brand brand New begin Canada). Offer a synopsis of short-term, low buck value services and products happen to be into the Calgary market with a specific increased exposure of task that could be considered ‘in between’ mainstream fringe financing and conventional bank offerings. Use in scope lending that is online any kind of lending occurring outside of finance institutions. Measure the value that is social by alternative financing models such as for example NewStart, Blue Copper Capital and comparable organizations. Identify opportunities and dangers of partnership with every. Assess standard bank readiness to partner to attain the task objective with a certain give attention to credit unions along with other locally-based banking institutions. Identify prospective potential operators of the stand-alone social company loan providers.

Enterprize model Development (more or less 80% of task): the objective of this goal would be to build away a business that is comprehensive for scalable, sustainable pay day loan alternatives for Calgary. The perfect solution is has to deal with the questions that are following

< p>What exactly are suggested item offerings? Includes information on quantity, term, rate of interest, eligibility requirements, protection or security if any, credit bureau reporting, application process, graphical user interface (face-to-face, online, mobile etc.), projected acceptance price, etc. Just exactly How numerous loans are projected in the 1st 36 months associated with offering? What’s the projected payment price? What’s the investment necessary to attain these outcomes? Where will this investment result from and exactly how will investors be rewarded with their danger? What’s the profile for the ideal customer and what’s the product’s market positioning? As an example. Can it be more straightforward to have high obstacles to access (eg cash management training includes as an element of item distribution) and a top quality loan profile despite the fact that this model will exclude feasible good prospects? Or perhaps is broad impact chosen even at the cost of loan quality? What’s the rationale for the market positioning that is recommended? Just just just How may be the danger handled and shared? Exactly how much will the institution that is financial in upfront money? Exactly exactly What portion (if any) of write-offs are suggested as guaranteed in full? What’s the projected social and impact that is financialas an example, just how many bucks are anticipated to be redirected far from interest re re payment)? What’s the projected profitability for the model (if any)? So how exactly does the proposed solution start thinking about lessons discovered from comparable models implemented in the usa and Canada by having a specific concentrate on your local connection with the bucks Crunch pilot? Exactly exactly exactly How if the solution be implemented and what’s the price of execution? Do you know the projected development opportunities beyond Calgary?


Submission Needs:

The applicant(s) will submit a proposition with this Work project (a maximum of 5 pages) that has to range from the following information:


A description associated with the approach you need to take to your work project, including a proposed work plan with a listing of tasks, methodology and a phased schedule reflecting the mandatory deliverables.

Resources, Qualifications and Sources:

Biographies for every person that is likely to be mixed up in work, explaining relevant skills and showing experience in the region of system assessment. Two recommendations representing comparable or work that is related by the applicant during the last 2 yrs, indicating the organization(s) to that your solutions had been delivered and a guide title for every company. Sources will include addresses and phone figures.

A estimate including per diem prices and projected time allocation for every single individual active in the work, with totals summarized.


The job is anticipated to span no more than three months and become complete by April 2015.



Proposals needs to be submitted by 11 2015 november. The proposition ought to be provided for: Carolyn Davis

Site list: Payday research that is lending: the actual price of Payday Lending Municipal choices for Payday Lending Policy Change Provincial alternatives for Payday Lending Strategy Change Cash Crunch Information

Resources Available after signing privacy contract: Cash Crunch interior info Fair Finance concept brief

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