This remarkably straightforward and relatively easy to run checking cashing business is located in a high traffic Downtown Los Angeles Area shopping center with a high density employer in an adjacent location. The well established neighborhood incumbent primarily assists a Spanish and English speaking client base, but foreign language skills are not deemed to be essential for ownership. The business has plenty of parking and excellent freeway access. The store offers its clients payday loans, which comprise 90% of its business, as well as check cashing, Western Union etc.
Asking Price $180,000
This 900 square foot location leases for $1,700 per month on a lease until 2019 with one five year option. The businesses assets include everything necessary to run a payday loan and check cashing business including an onsite safe, printers, and basic office equipment. Payday loans require a license for payday advances from the Department Corporations, and a check cashing license with the Department of Justice. They also need a $200 per year bond to be established for an owner with a clean criminal record. While there may be bank requirements for working capital, the current owner is able to maintain the account with $2,000 to $4,000 on deposit, with an additional $3,000 - $4,000 in the store for a total of $5,000 to $8,000.
Competition exists as these services are popular in this area. The neighboring competitors, however, have been established for years and the marketplace is deemed to be mature, with enough business for all. Given that this business is considered to be in a premium location, it benefits from its ease of access and complementary neighboring employers and stellar freeway access.
New owners may seek to engage in auto title loans (self-funded with a lenders license, or via a 3rd party form) or gold purchasing (also sales via a third party). The company recently added mailbox services with 25 boxes, which a new owner may wish to promote.