CHECK CASHING STORE CHAIN
Seller:
Attn:
Dave Larson
Location:
Central CT, CT, USA
Listing Number:
"1315DL"
Overview of the Business:
On deposit- inquiries welcome. Small chain of stores in storefront central city locations. The core service offered is the cashing of payroll, government and corporate checks at a service fee of 2% of face value, 1% on checks issued by the State of Connecticut. They also offer other financial services such as money orders, utility bill payments, and international money wires. The current owners have owned the business for 7 years. It started in the early 1980’s. A full time hired general manager who runs the day to day operations, and a supervisor in each store is responsible for filing a daily detailed activity and inventory report. Most stores operate with one full time person- the supervisor- and part-time help. The owner seldom visits the stores and works part time reviewing business data from his home. Terms: Negotiable seller financing terms with substantial cash down. Buyer will need $600,000- $700,000 in working capital, and more in the first quarter to handle tax refund seasonal checks. SBA finance is another confirmed possibility.
Property Features and Assets:
The chain has contractual leases for all of its locations in city storefronts. The acquisition would be subject to the buyer successfully receiving an assignment for the leases.
Market Competition and Expansion:
Competition: Check cashing for a fee is a regulated activity in the state of Connecticut and most other states. The state has about 110 licensed check cashers. Obstacles to entry are licensing, specialized know how, working capital and breaking through existing stores who enjoy strong customer habits.
Growth and Expansion: A new owner can concentrate on growth because the systems and management are in place here, and the tracking and accounting are fully computerized. Tax preparation is a fertile area to add, which could potentially add $50,000-$100,000 or more to the bottom line. Other possible products to add are cigarettes by the carton, and lottery ticket sales. Another growth avenue is adding locations. The current owner has added 3 stores since 2002. The current GM is a tremendous resource to assist the new owner in picking the right locations for new stores.
Additional Details:
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