Cash America 2007 Annual Report Download - page 6

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From smoke signals to rotary phones
to PDA phones, man continues to
seek instantaneous communication.
We’ve advanced from waiting months
to receive information to accessing
it within seconds. Similarly, Cash
America’s products and services
allow customers quick solutions to
unexpected financial challenges.
Advances in perception and service
Long past are the days when a cigar-smoking pawnbroker
arbitrarily assigned collateral value. From its inception in
1984, Cash America has boldly pioneered a new image
of the pawn industry. As the first publicly owned national
pawn chain, we have developed a high-
end, customer-focused pawn business:
bright, well-lit stores staffed with
knowledgeable, friendly associates who
access a comprehensive database to
make equitable, consistent assessments
of collateral to serve our customers.
The pawn loan process is simple.
A customer brings in an item of personal property in
support of a short-term loan to meet an immediate cash
need. Within minutes, he receives a loan based on Cash
America’s expected resale value of that property. At any
time during the loan period, the customer has the choice
of returning and paying the loan balance plus fees and
service charges to redeem the items, or electing to have
Cash America keep the property in complete satisfaction
of the customer’s obligation – all with
no negative effects on the customer’s
credit. The typical pawn loan is small –
usually less than $100.
About 70 percent of customers redeem their property.
But in the cases of those who don’t, retail customers
are offered attractively priced sale items in our stores.
In fact, Cash America pawn stores offer bright, friendly
environments for finding bargains on everything from
musical instruments to jewelry and electronics.
Since customers have come to rely on us as a
neighborhood financial resource, we’ve worked to give
them access to a variety of financial tools. Today we
offer cash advances and check cashing services in many
pawn locations, as well as money
orders, money transfers, stored value
cards, insurance and more. Not all
are available in every location, but we
continue to make advances according
to customer demand.
We’re proud to say that the impetus for
our existence – our traditional pawn
business – has become a viable alternative to traditional
financial institutions for millions of hardworking
Americans. We’ve come a long way in advancing the way
our industry functions, and the way it’s perceived by all of
our audiences – customers, regulators, law enforcement,
co-workers, the media and investors. The pawn industry
isn’t just growing, it’s growing up – by broadening service
lines and meeting the needs of customers.
Cash America International, Inc.
Communication
4
3% Check Cashing/Other
Composition of Net Revenue,
Net of Loan Loss Expense
(12 months ended December 31, 2007)
38% Cash Advance Fees,
Net of Loan Losses
31% Pawn Service
Charges
28% Profit on
Merchandise
Advances