[141] Principal Pay-down Business - YouTube

Hello, my name is Faisal Khan. I'm a banking and a payment consultant. I want to talk

to you today about what is the principle pay down business this is a basically a

debt consolidation sort of a business where if you are let's say buying a car

and you have a monthly payment of let's say $1,200 you can sign up to a

principal paid on business which basically says please deduct 600 from my

bank account every fortnight and you know the system will basically deduct

$600 on the first 600 on 15th and on the end of the month

or rather 600 on the 15 and 16 under on the first and at the end of the month

combine those $1,200 and send them out to the car leasing company this way you

so basically you know you forcefully put a habit towards yourself that you will

not spend the money knowing that this money has to come out it inhibits a

discipline if you will my financial discipline knowing that you

have to pay that principal and it is deducted at source before you can spend

it and these companies you know the work all around the u.s. various states and

this is not just done in the in the field of let's say automobiles it's done

in consumer financing as well if you bought a stereo or a television on

installments you can enroll in a principal pay down system it is in done

on the rental apartment apartment rental or home rental vertical so every time

you have to pay an apartment rent et cetera it is already deducted on the

15th of every month half of 8 and twice a month is deducted sometimes it's

deducted more than that depending on how you position it and how you have signed

up and the whole thing is to instill a financial discipline so that the

payments are taken out from your account they're held in escrow combined together

and maybe the ACH Fedwire or checked a check is sent to the leasing company

companies are engaged in this business have discovered that they are indeed

money transmitters because they are holding on to third party funds and you

know if you want to expand maybe you've got a money transmitter license in one

state but if you want to expand to other states it's not that easy more often

not the regulators now are increasing a surety bonds increasing the scrutiny so

getting a money transmitter license now is proving to be more of a hassle that

it's actually worth if you are a business that is in the principle pay

down is in the debt consolidation arena and you may you may have a money

transmitter license in one state maybe you have it in two or three states but

would like to expand out knowing that you could do great business if you had a

license in California or in Texas or New York or what-have-you and Illinois or in

Florida maybe you need to talk to us we enable principal paid our businesses and

debt consolidation businesses to get the legal cover that they need they regulate

recover that they need nationwide if they don't need a nationwide we can

certainly do the multi-state equation we can do the big three the big three being

New York Texas and California in addition to that we provide access to

banking we provide card processing services we provide the escrow services

we provide the the consolidation services so you know bunching the

payments together and sending them out wherever it may be be it on Fedwire be

it on ACH same day next day or even or by cheque so this is something that you

would like to work with us or would like to work and you have ready transactions

and you would like to expand into other states like I said nationwide almost the

state maybe you need to speak to us we'd be happy to happy to you know have a

talk with you and see how we can help you out the there's a contact form in

the description below please fill it out you know you know once and once we get

it we'll be happy to have a word with you until next time Phaethon signing off