Consumer hire FCA regulated franchise with existing customer base and forward loan book and stock.
This is a 4 year old financial loan franchise company specialising in consumer hire of household goods on a lease hire basis such as TVs , Sofas,Tables,Fridges, Beds, White Goods , Furniture, Electronics , mobile phones , iPads , Lap tops etc . These products are purchased from various suppliers at retail or wholesale . The business is a consumer hire FCA regulated franchise.
The customers are found by head office led generated leads through social media channels targeting specific demographics . There is an existing base of 260 customers for the loan book the data base is 1300 people . At peak there were 430 but as the owner has decided already to reduce his time in the business , At peak the book had a value of £500k . The current value is £150k which is being discounted to £135k to reflect a fair value of gross receivables . The franchise system has been operated for 13 years 6 years in the uk . There is a 10 year agreement in place , the majority of these franchises being sold have 8 years left . There are 50 franchisees in the uk . The cost of a franchise is £40k plus vat so £48k . This deal incorporates 5 territories so a total cost would be £248k. This together with the gross book value of £186k , a total of £434k is being discounted heavily to a total price of£195k less than half the true value .
Potential Growth * potential for 5000 contracts
*existing operating customer base
*the book value is massive;y discounted
* proven demand so can grow substantially.
*low default rates
Competitive Overview Retail lenders , in store finance and consumer leasing including credit cards .
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