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

Project Goal:

The task objective is: to produce a reasonable and scalable alternative cash advance item. To make certain that: People residing on lower-incomes can avoid or leave a harmful financial obligation period and start to create assets that lead them toward a livelihood that is sustainable.

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

Ecological Scan and Market Feasibility (roughly 20% of task): the goal of this goal would be to investigate the presence and popularity of other alternate lending models, plus the feasibility associated with two choices described above. Through this goal, the consultant is accountable to.

Confirm current Calgary market size and earnings information (if available) for main-stream lending that is payday. >Conduct a top degree scan|level that is high of payday lending alternatives currently offered in North American cities (eg BankOn, Van City Fair & Fast Loan Virginia installment loans laws, brand brand New begin Canada). Offer a synopsis of short-term, low buck value services and products already are within the Calgary market with a certain focus on task that could be considered ‘in between’ old-fashioned fringe financing and old-fashioned bank offerings. Use in scope lending that is online some other financing occurring away from banking institutions. Gauge the social value produced by alternative financing models such as for instance NewStart, Blue Copper Capital and comparable companies. Identify possibilities and dangers of partnership with each. Assess institution that is financial to partner to ultimately achieve the task objective with a certain give attention to credit unions as well as other locally-based banking institutions. Identify possible prospective operators of a stand-alone social company loan providers.

Business structure Development (roughly 80% of project): the objective of this goal would be to build down a business that is comprehensive for scalable, sustainable cash advance alternatives for Calgary. The answer needs to address the questions that are following

< p>What exactly are suggested item offerings? Includes details on quantity, term, interest, eligibility requirements, safety or security if any, credit bureau reporting, application procedure, graphical user interface (face-to-face, online, mobile etc.), projected acceptance price, etc. Just exactly How numerous loans are projected in the first three years associated with offering? What’s the projected payment price? What’s the investment needed to attain these outcomes? Where will this investment result from and just how will investors be rewarded for his or her risk? What’s the profile regarding the perfect customer and what’s the product’s market positioning? As an example. Can it be easier to have high obstacles to access (eg money management training includes included in item distribution) and a quality that is high profile and even though this model will exclude possible good prospects? Or perhaps is impact that is broad also at the cost of loan quality? What is the rationale for the suggested market positioning? exactly How may be the danger shared and managed? Just how much will the institution that is financial in upfront money? Just exactly exactly What percentage (if any) of write-offs are recommended as fully guaranteed? What’s the projected social and impact that is financialas an example, exactly how many bucks are anticipated to be redirected far from interest re re payment)? What’s the projected profitability associated with the model (if any)? How can the proposed solution give consideration to lessons discovered from comparable models implemented in america and Canada with a focus that is particular the area connection with the bucks Crunch pilot? Just exactly How if the solution be implemented and what’s the price of execution? Do you know the projected development possibilities beyond Calgary?


Submission Needs:

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


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

Resources, Qualifications and Recommendations:

Biographies for every single individual that is supposed to be active in the work, explaining appropriate skills and experience that is demonstrating the region of program assessment. Two recommendations representing comparable or work that is related because of the applicant over the past 2 yrs, indicating the organization(s) to that the services had been delivered and a guide title for every company. sources ought to include details and phone figures.

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


The task is expected to span a maximum of a few months and stay complete by April 2015.


Proposals needs to be submitted by November 11 2015. The proposition should really be delivered to: Carolyn Davis

Site list: Payday lending research brief: the true price of Payday Lending Municipal choices for Payday Lending Policy Change Provincial Options for Payday Lending Strategy Change Cash Crunch Information

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