Unsecured Loans Finance Company For Sale

Business description

This business provides home collected credit and unsecured personal cash loans made available over a selection of weekly terms. To over 200 clients with average weekly collections of £2000+, loan book value is £136,000, and annual profits of £85,000.
As a member of the Consumer Credit Association the Business operates under the rules of the Consumer Credit Act 1974.

The business offers weekly loan terms available at varying rates of interest. The business also offers consolidation loan refinance facilities. The business in general offers interest rates of between 365% and 433% APR.

The business operates in an Essex town with the right kind of demographics and has a widespread, loyal customer base.

The collector calls on the customers on a weekly basis, to collect payments and to provide customers with on-going credit facilities as required. The vast majority of payments are collected face to face, on the door.

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.

The business enjoys a 98% retention rate amongst its clients and a collection ration of 85%,

The majority of clients are mums with children, many of which are single mums. Many clients are on benefits and thus have a lower credit limit.

Most loans are currently between £200 and £800.

Client Service:

Many of the 200+ clients are long term and the collector has built up a very positive relationship that is based on trust and reliability. The client base has almost a feeling of gratitude towards the business.

Key Strengths:

The number of Clients is 201, of which 38.9% are considered prime, 27.3% good
25.3% fair, 6.1% would not be given another loan
Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
Average collections over the last 13 weeks have been approximately £2000 a week, Loan book value is £106,000, and annual profit is £65,000

Property information

Location:

There is no property associated with this sale.

Business Operation

Expansion potential:

The business has the ability to grow substantially. New customers at present are generated just through word of mouth referrals. Advertising via the local press, via the internet and via door to door leafleting campaigns would provide a substantial boost to the business.

Competition / Market:

The business does not currently advertise.

Reasons for selling:

The owner is seeking to take retirement.

Trading hours:

Monday – Friday: 4.0 pm – 7.0 pm

Employees:

The business employs one collector.

Other information

Support & training:

All necessary training and a full handover are available to ensure continuity of trading.