established in 2003, and run on a day-to-day basis by the original founders of the operation, following extensive experience with one of the leading providers in the uk, this business specialises in the provision of home collected credit – unsecured personal cash loans made available over a selection of weekly terms. Operating in a highly localised and very suitable area of kent – an area with exactly the right kind of demographics – the business has built up a widespread, loyal customer base. It calls on its customers on a weekly basis, to collect payments and to provide customers with on-going credit facilities as required. Customers can pay by cheque delivered by post to the company’s registered address but the vast majority of payments are collected face to face, on the door. Bound by the rules of the consumer credit act 1974 and the data protection acts of 1984 and 1998, the business offers weekly loan terms available at varying rates of interest for 15, 30, 40 and 52 week term loans. The business also offers consolidation loan refinance facilities over 50 or 100 weeks. Each term has a calculated apr which is well known for its far more favourable terms in comparison to its competition within the area. The company also offers a cashback incentive scheme which is a major usp of this business within its catchment area. A large proportion of the loans made are higher margin shorter term ‘overlapping’ loans whereby a remaining small balance on an existing loan is cleared from a new loan given, with the customer receiving the balance of the new loan less the amount needed to clear the previous loan. Having commenced with a cash loan of £100 in august 2003, the company has since signed up over 300 customers and granted a total of over £720,000 in loans and refinance facilities since the commencement of trading. With a current overall outstanding book debt balance of almost £240,000 - £220,000 of which is considered eminently recoverable, this business represents an excellent opportunity for an existing operator in the unsecured persoanl loans sector to extend their presence in the market or for a new entrant to establish themselves in the sector by acquiring a very well managed and well established business with a loyal and very active customer base. Key strengths: this is a very well established business with a proven successful business model. It operates in a highly suitable geographical area – with a large number of homes of the most appropriate demographics within its catchment area.. Operating within the framework of all of the relevant legislation, the business is very well managed – and has been developed as a local brand within its catchment area. It has a distcinctive brand – which together with its cashback promotional initiative – differentiates it from its local competition. All documentation – loan agreements, payment books etc are in place. It has an extensive, loyal and active customer base. Almost always accommodating, as far as granting loans is concerned – at least until recently, when the owners of the business have been looking to reduce their business activities – and certainly friendly and approachable, the agents of the business are well liked on the doorstep, which in turn generates more business. Not surprisingly, the business benefits from high levels of awareness and strong word of mouth recommendation. As a result the business enjoys very high margins on the business that it writes – generating on average £742 margin per year for every £1,000 loaned. Key opportunities: there is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for the services offered by this business, combined with a capacity to increase turnover, a new owner contributing fresh ideas and motivation will have every advantage of building on an excellent platform. Looking to scale back their business activities in recent times – the business has been turning customers away every month - and without sufficient capital to meet demand, there is significant scope to grow this business significantly without too much effort. With customers who have been on the books of this company who currently have no outstanding balances, customers who have received less amounts than they originally requested, customers known to be using competitors and other customers who have been recommended to use the facilities of this business but have been turned away, the current owners believe that it would easily be possible to double the existing customer base of this business, if the money was available to lend. Marketing and advertising: having operated within its local marketplace for the past seven years the business, has never felt the requirement to advertise or market its services. The business offers a cashback incentive promotion – a 10% saving on interest if paymentts are made on time. The business has a very loyal customer base and benefits most of all from the most cost effective form of marketing, word of mouth recommendation.
