Finance for Home Collected Credit Business For Sale

Business description

This is an excellent opportunity to aquire a company who provide small, short term, unsecured loans to their clients. The company lend from Fifty pounds to One thousand pounds with the majority of the loans short term and paid back within 29 weeks. The average loan is approximately Three hundred pounds, and is paid out in either cash or in high street vouchers. The loans are paid back weekly or monthy by either direct payment made into the office or by a simple, house collection call.

The company is owned and run by two equal partners,and was formed in 1989 with their own personal money used for the working capital. They now have over 260 regular active clients and use an overdraft borrowing facility and their own funds. They are a local and well trusted company who assess their customers credit worthiness by the filling out of an application form and by checking on Equifax.

Property information

Property:

Leasehold

Lease terms:

The leasehold premises are circa 400sq.ft. with rental of circa £2,500 (Two thousand five hundred pounds) per annum and rates of circa £460,00 (Four hundred and sixty pounds) per annum.

Location:

The business is located in a busy high street shop in South Yorkshire. There is a small reception area, back office with toilet and kitchen with gas central heating. The leasehold premises are circa 400sq.ft. with rental of circa £2,500 (Two thousand five hundred pounds) per annum and rates of circa £460,00 (Four hundred and sixty pounds) per annum. There is easy parking outside of the shop.

Other information

Expansion potential:

The company keeps a high retention of clients and most new customers are obtained by word of mouth reccomendation or by family referall.

There is no advertising or marketing budget for the company, but the current owners iunderstand that if a local advertising campaign was activated, they could increase their client base sustantially.

The company has a database of over Five hundred , but have not been pro-active in contacting any of these prospective clients.

Support & training:

Either or both of the partners would be happy to help the new owners with a smooth handover of the business.

Reasons for selling:

One of the partners is nearing retirement age and the other partner believes this would be a good time to sell the business and look at other business opportunities.