Sectors / Category

Annual turnover

  • Mandate: 32296
  • Added: 03 Aug 2018
  • AFS
  • 1715

New Cash Converters as Going Concern in Cape Winelands

Western Cape, Overberg & Breederiviervallei
Mandate 32296
Added 03 Aug 2018
R 3,250,000* ZAR
Stock: R 800,000
Assets: R 2,558,147
R 101,118 ZAR
Hugo Tallie
Aldes Winelands
Western Cape, Paarl
Western Cape, Paarl

Excellent opportunity to own an International Franchise business (world's largest franchise of its kind) which is recession-proof and which offers multiple revenue streams such as retailing of quality second-hand goods ,pawnbroking and short-term loans against a customer's next salary.

New Cash Converters as Going Concern in Cape Winelands
R 3,250,000* ZAR
Stock: R800,000
Assets: R2,558,147
R 101,118 ZAR

Excellent opportunity to own an International Franchise business (world's largest franchise of its kind) which is recession-proof and which offers multiple revenue streams such as retailing of quality second-hand goods ,pawnbroking and short-term loans against a customer's next salary.

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Fully describe the business's activities?
This business sell second hand goods , loan money against goods (Cash Advance or Pawnbroking) and do short-term loans against a customer's next salary. This Franchise is part of the world's largest cash and Asset converter with an international network of more than 740 stores in 20 countries around the world.

How long has the business been established?
This business has been established 18 months ago.

How long has the owner had the business?
The current owner has the business since inception

How does the business operate on a daily basis?
The Manager starts at around 8H00 by transfer cash to the different tills. The Staff do all the start of day functions (such as accepting till balances , cleaning,etc) and at 8H30 the doors open for trading. During the trading hours the buyers do buys and cash advances from clients and the Sales persons sell second hand products to clients. The 2 staff members at the Personal Finance Division loans cash to customers according to the rules of the National Credit Provider . At 17H30 the staff do the Close of day Functions

How are the clients attracted to the business?
Clients are attracted to the business mainly because of the business model - they get immediate CASH in hand and they can buy quality seconds hand goods at discount prices. Head office also offers SMS , Facebook Campaigns and TV Adverts .

What Advertising/Marketing is carried out?
Local Area Marketing consist out of distributing pamphlets and adverting in local newspapers

Does the business have any contract work?
No , the business have no contract work.

What competition exists?
Cash Crusader in town

What are the seasonal trends?
No seasonal trends

Is the business VAT Registered?
Yes , the business is VAT Registered

What VAT documentation is on file?
All the VAT 201 returns are available

Are there up-to-date Management Accounts available?
Yes , Up-to-date Management Accounts are available .

What Balance Sheet and Income Statements are available?
30 June 2018

What percentage of the business is cash/credit?
100 % Cash Sales

How could the profitability of the business be improved?
The Profitability could be improved if the business were run by the Owner on a daily basis . Profitability will also increase over time until the business reach financial maturity - normally around 3 years after opening. Profitability can also improved if the business opens on Sundays from 8H30 till 13H00 .

Is Seller finance available and for what amount?
No Seller finance is available

What is the total staff complement?
10 Staff

Give a breakdown of staff/ functions/ length of service?
Manager x 1 ; Buyers x 2 ; Sales Persons x 3 ; Storeman x 1 Cashier x 1 ; PFC x 2

Do any receive special perks or incentives?
Yes , they receive commission if certain goals are met .

Are they on contract?
Yes , all staff is permanently employed

Do any have management potential?
The current manager runs the business

How involved is the Owner in running the business?
The Business is run by the Manager and the Owner is only part-time involved in the business

When does the current lease end?
The current lease ends on 28\02\2020

Is there an option of renewal & what period?
Yes , a first option of 3 years plus a second option to renew of 4 years

What is the annual escalation %?
The annual escalation is 7,5 %

What are the trading hours?
Trading hours are : * Monday to Friday from 8H30 till17H30 * Saturdays from *h30 till 13H00 * Sundays "Closed:

What is the square meters of the business?
406 square meters

Is a copy of the lease available?
Yes , a copy of the lease is available

Do you require a licence?
Yes , the following licences are required and in place : * Certificate of registration as a Second Hand Dealer * Film and Public Board licence ; * NAFSHD Certificate ; * National Credit Provider Certificate ; * SAMRO * SAMPRA * TV Licence

What lease deposit and/or other surety is required?
Lease deposit of R17 100 is required .

What are the main assets of the business?
The Main Assets of the business consist out of : - Computer systems ; - Shelving ; - Cabinets ; - Safes ; - Furniture and fittings

What is their overall condition?
Brand new and in excellent condition (18 months old)

Do any require repairing?
No repairing is required

How have they been valued ?
The Assets are valued at Cost Price

Which assets are on lease/HP and with whom?
3 x Xerox Office business printers are on lease

What are their settlement amounts?
On contract - 3 years

Will Seller settle or Buyer to take over?
The Buyer will take over

Are copies of agreements available?
Yes , copies of the agreements are available

The Cash Converters Franchise is a proven business model and has one of the most comprehensive training programmes in the industry.Regardless of the economic climate , customers will always need it's service. The business offers multiple revenue streams : Retailing quality second-hand goods , pawnbroking and short-term loans against a customer's next salary. The business also have a R1M credit from Head Office to grow its payday lending policy. The Cash Converters group offer also the lowest royalty structure in the industry.


The New Owner can only built on the foundation of the past 18 months trading and advertising campaigns.

The normal treats associated with this kind of business.

What is the reason for the sale?
Family issues

Why is this a good business?
This is a exceptional International Franchise business with a proven track record and many of the Cash Converters franchisees have reported double-digit returns,year on year,over the long run. This is also a recession proof business model .

What is the price plus stock and the net profit?
The Price of the business are R 2,450 m plus stock (+- R 800 000) with a projected net profit of R 100 000 per month based on a projected Turnover of R 400 000 (Currently more than R 300 000 pm) and a Cash Advance Book of R 400 000 (Currently in excess of R 200 000) - this all within the first 18 months of trading!!!

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Aldes Winelands

2 members
12 active mandates
Western Cape , Paarl
14 Auret Street Paarl Western Cape 7646

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