The trifecta of any successful lending program are:

  • Cheap money
  • Low cost of acquisition
  • Great credit risk management

If you have two of these three attributes, you are on your way to greatness.

Cheap money is easy to find if you have scale. Before you get to the first $300 million worth of lending portfolio, you are slaves to expensive money and worse low advance rates (you gotta raise a bunch of equity to backstop the advance rate).

So, getting cheap money to lend out as a a start up is probably a no go. If any of my readers think differently, please leave a comment below and enlighten us. …

I work with a lot of portfolio managers that can’t dig themselves out of a stalled out portfolio.

I hear them lament “Every time I put more loans on the street, my default end up going higher and I shut off marketing and try to recover… what can I do?”

Well, before we get to the solution, let’s push on this subject. Why is it that they can’t scale?

For one, there are plenty of demand out there. Sounds like they have no issues finding customers wanting to take out a loan with them. …

Hello again, if you have been following my series on FinTech topics, I am glad you are back again. Please like or share if you think this could benefit someone in your network of friends. As always, you can always reach me for a deeper discussion.

Before we get into today’s topic, let’s talk about Plaid. Plaid is a tool which you can login to your bank account and unlock your banking transactions and share it with whomever you give permission to. Why would you want to do something like this? Well, for one, most of the lenders require you to log into Plaid as part of their underwriting strategy. Why? Well, they look at your transaction records and see if you are gainfully employed or a habitual overdrafter. Equipped with a that information, lenders can make an informed decision as to whether they will lend to you or not. …

Before we get into this debate, let’s talk about what first payment default means?

In the broadest sense, first payment default is when someone take out a loan, a line of credit or a credit card and fails to make their very first payment.

Now, why on God’s green earth would someone do that? Wouldn’t they ruin their credit and get a bunch of collections agencies chasing after them? Well, to answer that, we need to think like someone that, doesn’t give a sh*t about their credit. …

BNPL, or buy now pay later is super hot right now, but the concept has been around for a while.

What is new this time around is that technology is now available to make every consumer retail companies a finance company.

Here are a few things you need to set up your own BNPL for your own company. If you are in consumer goods or services, you should consider this as an option to expands your customer base and make additional income at the same time.

  • Technology: You need a good private-labeled lending operating system that can easily embed into your existing website and or app. There are tons of offerings out there that costs less than hiring your own developer and get it up and running fast. These companies will build your customer experience behind the “apply” button and the customer experience matches your overall corporate style. …

Learn to respect other people’s time

I might have learned this too late but I want to say a few things about time.

Time is precious and finite. And most importantly, other people’s time is also precious.

To maximize your own time, you must learn to respect other people’s time. Don’t waste someone else’s time just because you got the time on your hands. Respect others time is the first step of maximizing your own time.

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“Decision Units”, “Decision Capacity” and “Decision Splitting”

What I mean by splitting decision time to shorten time you need to make any decision. It’s mathematical.

Say it takes you 1 minute to make a critical business decision that affects another party. And counter party takes 1 minute to respond back to you and you have to respond back within a minute, your typical response time. …

People often ask me, what is FinTech and what does it mean to me?

FinTech is the liberation of everyone living on this planet that has been denied access to banking, credit, payments and wealth management. Freedom of data and transparency in black box decisions is the hallmark of FinTech.

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Access to banking is a fundamental human right to transact, store and build wealth without the threat of being harassed by hidden fees or overtaxed and tricked into privacy loopholes. FinTech is to deliver banking services to every man, women and child everywhere on this planet and beyond.


Timothy Li

CEO of Alchemy For more information, please visit us at

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