2021-02-27 Business in USA

Opening a company in USA needs a strong vision and feet in details.

Beeing stretched between market and customers is critical. You can stretch the company the way it makes sense and add one or additional more services as business needs to grow or as it needs to change focus. Market, market, market.

Later to shape the vision of the company together with management. That is challenge too. Few times the focus has to be readjust, has to discussed and renewed. Unfortunately few times people do not take words as important, as they do not see the connection with their salaries, with the money they did earn.

"give me more so we can share vision" argument is crazy. It is like the colleagues had been in the company till now without sharing the vision. Sometimes it is hard work and no, that opens the good way of cooperation and growth. There is a big advantage in this world it is called money. It doesn't have to limit the business, but money are not connected to any kind if influence. Are they there or not. And only if they are there we have achieved the point that makes sense to look on next step.

And I need to refocus all management there.

2021-02-23 Aquiring on US market

My philosophy of acquiring or getting better contacts on the market is simmilar to the ones done by actors. You have to create a value, a person people will recognize and follow and trust to be able to get the contacts you seek. It is not young sales people, it is not sexy assistants. You are building a brand, a recognition, you are putting part of you to the company so customers, employees, investors and suppliers can trust.

Of course it is time consuming. Of course it takes a lot of effort and luck. I do not know other way. Just keep walking even it is up the hill. Maybe this is the only way to achieve others did give up. Walking up the hill is much harder, requires more discipline and shows you how hard it had been. Therefore you can recognize people with similar or same behavior and protect yourself from shortcuts that do not work for you.

Sometimes the extra hour, extra flight, extra nice word or extra support can make a difference. And few times you do not see it initially and many times you do not see it at all. 

I deeply believe in lending and giving loan. Empowering people to achieve what they wish to. 

2021-02-22 Credit collection managers

Working in credit union in USA for credit collection managers is not an easy job.

With average salary of $45,815 a year in comparison to loan underwriters with salaries in the same scale you talk about a big pressure on performance in the middle-low management levels critically important for the performance of the credit union. With $4,000 brutto we talk about raising responsibility and need to learn on the market that keeps changing in this Covid environment.

2021-02-21 Ability of the borrower to repay the debt (USA)

An American borrower, physical person has an ability to repay his/her debt defined as:

A = sum of savings + monthly income from employment + monthly passive income + value of movable assets (cars and such) + value of non-movable assets (properties and such) - obligations 

Not all of the assets can be turned to liquidity instantly and for some of them to turn to liquidity might take longer time (term deposits) or additonal costs (sales commision on the house, legal costs...)

How de calculate the ability?

Sum of savings: can be only estimated depending of usual savings in the simillar group of borrowers, monthly income and so on. I have not found a reliable source here on skip-tracing side

Sum of income - employement: that can be derived from skip-tracing tools both public (LinkedIn...) or licence specific. Some services are going deep and help to understand the challenge of getting good information. It might be also derived from the application provided on loan or of the side of credit card limits.

Sum of income - passive: the source for this skip-tracing is personal and I have not find a good source for this information. It might be derived though in public employees or where employers are providing such an benefit

Value of movable assets (cars, ships...): This information might be skipped. Usually is also important to see how much liabilities are sitting on that asset. That is achievable by skip-tracing.

Value of fixed assets (properties): Is a sum that could be skipped by publicly available sources on the properties owed. Mortgage on such assets are important too.

In some states you have so called common ownerships between married couples. That increases the ability of borrower to repay once in distress.

2021-02-11 American market & values of financial institutions

Opening a financial institution on US market is a great achievement and getting a licence is just a beginning. Many f.e. credit unions seek to grow and seize the opportunity to get more members in house and grow liability size of the book. More deposits, more ability to attract new products, more staff and better service. To support members and their hunger to get return on the money they did work on.

Every credit union has to spend money to get membership. It is said you might be spending 10% on marketing of the every $ you attract.

So lets say you want to attract $1,000,000 you have to spend $100,000 to get the chance to attract this money.