The short version
We earn interest on the loans we fund. That is the entire business model. We do not charge an origination fee, we do not charge an application fee, we do not sell your personal information, we carry no advertising, and nobody pays us to appear anywhere on this site.
| Source | Do we earn from it? |
|---|---|
| Interest on loans | Yes. This is our revenue. |
| Late fees and returned payment fees | Yes, but they are a cost-recovery charge, not a target. If our fee income rises we treat that as an underwriting failure, not a good quarter. |
| Origination fees | No. The amount you are approved for is the amount deposited. |
| Application fees | No. Checking your rate and applying are free. |
| Selling personal data | No, and never. |
| Advertising on this site | No. There is none. |
| Paid placement or sponsored content | No. No third party can buy a mention here. |
| Affiliate commissions | True Link Finance does not receive affiliate commissions for any recommendation on this site. |
Where the interest goes
Interest on a small consumer loan covers four things, and it is worth seeing them separately because it explains why a $300 loan carries a higher APR than a $3,000 one.
- Credit losses. Some loans are not repaid. Pricing has to absorb that across the whole book.
- Cost of capital. The money we lend has to be funded before it can be lent.
- Origination and servicing. Verification, underwriting, payments, statements, and support cost broadly the same per loan whatever the size, which is why the fixed cost weighs far more heavily on a small loan.
- Compliance. Licensing in 32 states, audits, and regulatory reporting.
That is the honest reason a small short loan looks expensive as an annual percentage. On a $300 loan repaid over six months at 35.9%, the actual dollars of interest are around $32. The APR is high because APR annualises a cost that is spread over half a year, on a small balance.
Why this matters to you
A lender's revenue model tells you what it optimises for. A lender paid through origination fees earns the moment the loan is written, whether or not you can repay it. A lender paid through rollover fees earns most when you cannot clear the balance. We earn when a loan is repaid on schedule, which is why our underwriting tests whether the payment fits your budget rather than whether the debt is eventually collectable.
What to ask any lender
Ask what the origination fee is, whether the loan can be rolled over, and whether there is a prepayment penalty. Those three answers tell you more about how a lender makes money than any page like this one.
On reviews and rankings
We do not pay for reviews, offer incentives for positive reviews, or ask for negative reviews to be removed. Where we recommend an alternative that would cost you less than borrowing from us, such as a credit union payday alternative loan, no commercial consideration applies and we receive nothing. Our full position is in the editorial policy.
Your data is not a product
We do not sell, rent, or trade your personal information, and we do not pass your details to a network of lenders who then contact you. Data is used to underwrite, fund, and service your loan and to meet legal obligations, and nothing else. The detail is in the privacy notice and the protections are described on the security page.
This page was last reviewed on by .