Cash Converters Bucks the Economic Trend

Cash Converters Southern Africa has already empowered about 100 franchisees, and with a strong pipeline of potential new stores opening in 2019, Cash Converters’ growth has it bucking the uncertain SA economy that still impacts negatively on the retail sector.

“We are well into the company’s expansion plan and aim to add a further 15 stores to the network in 2019,” says Mukheibir. “Buying a franchise remains a buoyant opportunity because it provides you with a business of your own in an environment of reduced risk as you are part of a proven business model.”

Cash Converters Southern Africa has a three-stream business model – buying and selling second-hand goods; cash advances; and short-term payday loans. These three strands of the company’s offering give franchisees multiple revenue streams, making a vital contribution to sustainability and growth in all economic climates, believes Mukheibir. An added competitive advantage to franchisees is that the company funds every franchisee’s payday loan book, to the tune of R1 million. This provides franchisees with working capital to fund their business growth. The company’s franchisees also benefit from the lowest royalty structure in the industry, says Mukheibir. It prides itself on standing out in the franchise industry for using a particularly clear and transparent methodology to calculate royalties and advertising contributions.

The company’s growth rate is on a par with the growth of retail franchising, according to figures released by the Franchise Association of South Africa (FASA), following their 2017 survey in association with Sanlam. This underlines the persistent popularity of retail despite the bad news about high-street names, says Mukheibir. In addition, the second-hand market is thriving because it chimes with the “reduce, reuse, recycle, repurpose”” theme of our times.

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