Who can invest?

Accredited investors. Click here for definition.

Are you licensed?

Yes, 391 Financial is licensed. Each state has different laws as it relates to consumer lending. We obtain licensing and follow each state law that we operate in. Most states perform audits at least once a year to ensure compliance.

Are you regulated by the newly created Consumer Financial Protection Bureau (CFPB)?

Yes. Along with state laws and guidelines the CFPB regulates the financial industry to protect consumers.

Who does 391 Financial loan to?

Our average customer makes over $36,000 a year and has been on the same job for 12 months or longer. These customers find themselves in a position where they need a small installment loan ($200 to $1,000). There are no prepayment penalties, so the customer can choose to pay it off at any time without penalty, and many do. Our average loan amount is $500.

What is the structure of my investment?

Your investment is a debt to our company. The subscription agreement is a promissory note, guaranteed by our company. Before investing, it is essential to review the Private Placement Memorandum (PPM) and Subscription Agreement. If you are not comfortable reviewing these documents, please consult an experienced attorney before investing.

What are the interest rates charged?

Our minimum rate for a borrower is 99% APR. The interest rate, charges, and terms vary from state to state. We adhere to and follow the laws for each state.

What if the customer defaults on the loan?

Our interest rates are designed to compensate for the loans that go into default and are never repaid. It is a high risk/high reward business; thus we have to charge higher interest rates to compensate for the defaults and the small loan amounts. Our investors’ interest rate is a fixed amount and is not tied to the performance of individual loans.

Do the usury laws apply?

No. In most states usury laws typically apply to mortgages, but not small consumer loans. States allow high rates on small consumer loans due to the economics of this market. This allows lenders to serve this market profitably. 

Do you loan to customers outside of the United States?

Not at this time.

How are you different than Peer-to-Peer Lending Sites such as Prosper and Lending Club? 

These sites are peer-to-peer, meaning investors are actively participating in the individual loans. When there are defaults, you participate in that default. With 391 Financial, we are allowing investors to invest and earn a fixed rate of return. We then take our investor's money and lend it out to individuals at a higher interest rate than we pay, thus earning a profit for our company. We feel this is a much simpler approach and our investors don’t have to worry about choosing winners and losers.

What is your consumer brand?

We operate as America's Cash Advance and will be launching a new brand called Happi Credit soon.