Description Unsecured Loans Finance Company
Ref.CG066
Location Essex
Asking Price œ 85,000
This business provides home collected credit and unsecured personal cash loans made available over a selection of weekly terms. With over 150 clients the loan book value is œ89,000 producing profits of œ45-50,000pa.
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 846.5% and 1276.1% APR for home collected credit and between 2-3.5% per month for the higher value loans.
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 ratio of 90%.
Most loans are currently between œ200 and œ800.
