BUSINESS DESCRIPTION
This opportunity comprises two well established registered micro lending offices that are being marketed for sale as the Seller wishes to retire. Located in Witbank and Kriel, both were established by the Seller in 1995 and each has two permanent employees running the day-to-day office administration and activities.
The Seller is resident quite a distance from the business thus manages it (for the most part) remotely. Operating from his home office, all key and relevant aspects of the business (contracts, collections etc) are recorded, monitored and reported on using a purpose-built, online software package (MYCO Suite - Quick Money).
The ideal target market is unsecured, employed borrowers.
This business operates in accordance with the National Credit Regulator so is accordingly compliant in every respect. For the period March â??12 to end October â??12 (8 months), business is indicatively apportioned as follows based on contributions of +/- 75% (Witbank) and +/- 25% (Kriel) respectively.
Average monthly lendingâ??s: Witbank: > R175k Kriel: +/- R58k
Average all inclusive interest/income: Witbank: +/- R55k Kriel: +/- R18.3k
Profit before takings and tax: Witbank: +/- R24k Kriel: +/- R8k
The Seller is seeking to sell at R660k and suggests that over and above, working capital in the amount of +/- R260k would be required to fund immediate/future loans.
Generating a combined monthly PBIT of +/- R32k, this listings offers a R.O.I of 58% or a payback of 20 months. The composite infrastructure of the business lends itself to growth.