Cash America 2013 Annual Report Download - page 17

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and diamond jewelry, tools and more. Cash America’s average
pawn loan is around $125. According to industry statistics,
approximately 60 million Americans reside in unbanked or
underbanked households. Cash America is there for this group of
customers to meet their short-term needs for credit.
During the loan period, customers have the option to return
and pay the balance, plus fees and service charges, to redeem
their property. This happens with approximately seven in ten
pawn customers. The remaining customers allow Cash America
to keep the property in exchange for payment in full, with no
negative effect on their credit. This forfeited merchandise is sold
to customers looking for a bargain over typical retailers, but at a
price designed to recover the principal loaned plus a small prot.
As the price of gold has retreated from its historical highs during
2012, Cash America’s age-old business model turns back to the
basics. Our focus has shifted from commercial jewelry liquidation
to in-store retailing of unredeemed jewelry collateral. Our stores
are bright, fresh showrooms that display a wide variety of ever-
changing, value-priced merchandise. And our uncompromising
service provides customers with a positive retail experience.
We continue to use Craigslist and eBay services to liquidate
merchandise that falls into the categories of “specialty items” or
“collectibles.” Although our eBay merchandise is shipped to buyers,
our Craigslist customers can pick up their items at nearby Cash
America locations, giving them an opportunity to preview our shops.
In addition to traditional pawn loans, many Cash America
lending locations offer other solutions, making us a trusted
neighborhood resource to those who have been turned away by
other nancial institutions. In many locations, customers have
access to short-term consumer loans and check cashing services,
money orders and wire transfers, prepaid debit cards, auto
insurance, tax-ling services and more.
Our Mexico-based pawn business, operating as Cash América casa
de empeño, continues to create more options for our international
customers. With 47 pawn lending locations in central and southern
Mexico specializing in both general merchandise and jewelry
lending, the chain offers an attractive alternative to customers in a
market dominated by gold jewelry-only lenders.
U.S. PAWN LOAN
COLLATERAL MIX
(as of December 31, 2013)
JEWELRY 64%
ELECTRONICS 19%
MUSICAL INSTRUMENTS/OTHER 12%
TOOLS 5%
PAWN SERVICE CHARGES 30%
PROFIT ON MERCHANDISE 18%
CONSUMER LOANS 51%
OTHER 1%
PAWN-
RELATED
TOTAL
48%
COMPOSITION OF
CONSOLIDATED NET REVENUE
(12 months ended December 31, 2013)
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