Check Into Cash
Check Into Cash Payday Advance Centers secures subordinated debt asset-based financing.
Decosimo acted as exclusive financial advisor.
About Check Into Cash
Check Into Cash, Inc. is one of the largest payday lender in the United States with over 1,250 storefronts operating in more than 30 states. The Company is regarded as one of the leaders in the industry and has been active in the formation of the Community Financial Services Association of America (CFSA), the only national organization dedicated solely to promoting responsible regulation and consumer protection in the payday advance industry through the CFSA’s Best Practices.
Client Objectives
Check Into Cash was one of the earliest pioneers in payday lending. At the time, the investment and lending communities did not understand the concept or the overwhelming need of its services. Check Into Cash came to us needing capital to expand nationwide and capitalize on their dominant position. At the time, Check Into Cash had only 20 locations and had firmly established a strong business model.
To achieve its aggressive growth plans, Check Into Cash needed significant financing. Its original business plan called for the establishment of 10 stores a month, a growth plan that most investors and lenders had a difficult time imagining.
Disciplined Process
We prepared a Confidential Information Memorandum (CIM) that clearly articulated
How the Company would expand at the proposed rate,
The Company’s business model, and
The emerging payday lending industry.
Banks, which had created the need for payday lending through significant overdraft fees, were reluctant to finance the industry – both due to misconceptions about the industry and a view of payday lenders as partial competitors. However, our detailed monthly forecasted financial statements showed lenders why the business model was solid and that growth was sustainable. We sent the CIM to a targeted group of approximately 5 subordinated lenders and 15 banks and commercial lenders.
Proven Results
Once the lenders became comfortable with the Company’s business model and the strength of management, we were able to obtain multiple subordinated debt proposals. We negotiated an attractive agreement that provided capital for growth and provided the asset base that allowed us to negotiate a large bank loan. The structured debt arrangement gave Check Into Cash the capital it needed to surpass all forecasts and grow to more than 1,250 locations and maintain its industry leadership.