Loans
There are two types of loans that Loan Stop currently offers: Payday Loans (Wyoming locations only) and Installment Loans (Colorado only).
Payday Loans
Payday Loans are a bit simpler than their Installment Loan counterparts.
These loans are designed to go no longer than one month. They have one set fee for the amount of time the loan is borrowed: 9 days, 16 days, 23 days and one month. While the loan is prorated if it is paid off early, that amount is governed by Loan Star and is not a number that is immediately available to clients or to employees.
Installment Loans
Installment Loans are offered only for a six-month period. During this time, the loan will accrue interest and a monthly fee.
Daily balances are available to retrieve by the employee. And the loan can be paid off at any time with only a two-week aging period to govern.
Requirements: The Basics
In order to borrow a loan with us, a client must provide:
- A bank statement for their checking account
- A check for that same account
- Their most recent pay stub
- A valid ID
- Three references
These items prove the client's employment, income, identification, financial resources, and address. Further, the information contained in these items allows us to make an accurate assessment of whether or not a client is eligible to borrow from our company and how much they are eligible to receive.
The items listed above are a good introduction to the topic of requirements. You'll want to follow the links below to learn a bit more about each of them separately.
The recommended order of items is listed below. Well, technically it was listed above too, but hey, the ones below have links to actual text and, in some cases, images! If you take your time and go through each of these sections one by one you'll go through Loan Stop noob to Loan Stop champion in very nearly only 4 years!
Bank Statement
The bank statement contains all the activity that has taken place on a client's checking account over a specific period of time: all debits (or withdrawals), deposits (or credits), checks written, fees, transfers and interest accrued. Everything. It is important to note that we take most of these items into consideration when reviewing a client's financial history.
We must know how a client uses their checking account to gain an understanding of how we might fit into their financial plans.
In the bank statement section, we'll go through several examples of bank statements as well as the specific items we look for in order to qualify a client and those items we look for in order to disqualify a client.
Personal Check
A client's personal check will be issued to
A bank statement will usually feature the logo of the bank along with a listing of each account that is open and active at that bank for the client. Within each account listing there is a collection of
Of course, that isn't quite the whole story. Things begin to get complicated as different types of income are introduced; and there happen to be several types of income we have an obligation to cater to, each with their own particular differences.
So now that you are briefly familiar with our requirements, let's mix things up a bit.
For the various types of income with which we are able to work we must adjust the requirements listed above. We do our best to acknowledge and accomodate all types of income with all the policies we have, but of course, it is impossible to accomodate everyone.
For now, the types of income we are able to accept are as follows:
- Salaried and Hourly income
- These clients generally work for a company. That company will handle all the specifics of their pay, including tracking the client's hours and pay rate; and then removing taxes and distributing paychecks.
- These clients will either receive physical paystubs or they will have access to them online, just like us!
- Annuity income
- These clients are earning some kind of monthly award. Either from the government (Supplemental Security Income, Social Security Disability or Veteran's Benefits)
- Self-Employment income
- Contract Laborer income
Below, you will find lists of our requirements according to the type of income a client receives. Take a moment to read through the requirements lists for each of the income types and think about why they might be structured that way.
Requirements for Salaried and Hourly Income Clients
- Bank Statement for personal checking account
- Personal check for the same personal checking account
- Most recent pay stub the client was due to receive or an award letter from the current year
- Valid photo identification
- Three references
Requirements for Annuity Income Clients
- Bank Statement for personal checking account
- Personal check for the same personal checking account
- Most recent pay stub the client was due to receive or an award letter from the current year
- Valid photo identification
- Three references
Requirements for Self-Employed Clients
- Two month's-worth of banking activity for their personal checking account
- Personal check for the same personal checking account
- Either the Schedule C from this year's tax filings (for last year's work), or their Doing Business As (DBA) documents or Articles of Incorporation that were filed with the secretary of state
- Valid photo identification
- Three references
Requirements for Contract Laborers
- Two month's-worth of banking activity for their Personal Checking account
- Personal check for the same personal checking account
- The 1099 or 1099k for this year's tax filings (for last year's work)
- Valid photo identification
- Three references
Our requirements are formulated to best guarantee our clients' ability to pay back their loan. In other words, our requirements are designed to ensure that the loan does no damage to a client's finances and our loans themselves are further designed. The requirements are also streamlined; there are few of them and few specifications therein so that we might maintain our policy of speed and efficiency.
Let's take a closer look at each of these items so we can understand a bit more about why they are and why they are required.
- Bank statement
Arguably the most important piece of documentation that a client must provide, a bank statement is a pre-constructed collection of all the activity that has taken place on an account during a period of time. The bank prepares the statements in advance and either mails a physical copy or emails a digital copy of the resulting document to their client.
Policy:
The bank statement must cover one month's-worth of activity. We usually set the number of days equal to 30 days. Sometimes, bank statements don't quite equal 30 days, falling anywhere from 27-31 days. If it is an actual statement prepared in advance by the client's bank and physically mailed to that client then we can accept it without trouble.
- Pay stub
- Check
- Valid ID
- References
Pro Tip: It is your job as a representative of Loan Stop to familiarize yourself with our requirements; both the what and the why. Clients expect you to be knowledgable in all of our policies and procedures and, similarly, so do we!
In-Depth
We only require five items of our employed or annuity-receiving clients
