Cash America 2000 Annual Report Download - page 9

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s t o red on the borro w e r ’s behalf until it is
redeemed through the payment of the
principal and fees owed under the term s
of the loan contract. In the United States,
a p p r oximately seven out of every ten loans
a re redeemed and the merchandise is
re t u rned to the customer. Overseas, this
redemption ratio is about nine out of
e v e ry ten loans made.
While the customer has the
o p p o rtunity to redeem the collateral, there is no
obligation to do so. Furt h e rm o re, unlike traditional
financial lenders, Cash America is pleased to welcome
the customer back and make a new loan to that
customer based on the value of a new item of collateral.
On the occasion that the loan is not redeemed, the
collateral becomes the pro p e rty of Cash America and is
p re p a red for disposition. In these instances, Cash
America makes the item of merchandise available for
sale to the general public in a retail setting much like a
small department store. Cash America has the
advantage of 426 locations in eighteen states to
e f ficiently dispose of unredeemed loan collateral. This
b road regional diversification of disposition
outlets diff e rentiates Cash America fro m
other industry participants. Shoppers
seeking value-oriented purchases of
p reviously owned goods enjoy Cash
A m e r i c a ’s clean, well-organized re t a i l
e n v i ro n m e n t .
In about one-half of the loan
transactions in the United States, the
collateral takes the form of gold and
diamond jewelry although other items such as
televisions, stereos, lawnmowers and tools may be
pledged to support a loan. The average loan
size in the United States is about $70.
Overseas, loans are secure d
mostly with
j e w e l ry, and the
average size loan
is larger than
in the
Products and items depicted on this and preceding pages are representative of the previously
owned merchandise offered for resale by Cash America. The manufacturers of these items do
not in any way sponsor or promote Cash America.