According to Australian business reports, more than one million people in Australia are expected to take out small personal loans this coming year. That fact alone has enabled the Australian payday lender, Cash Converters, to plan for company expansion. The information is good news as it follows a report of multimillion-dollar losses for the company last year.
Cash Converters, known for its yellow pawn shops throughout Australia, is hoping recent statistics will help them regain a footing, profit-wise, in the industry. Currently, a large number of Australians are using the Internet in order to obtain fast cash. Therefore, the company plans on expanding its network of stores in the country while investing more money in the payday lending market online.
This current alteration comes after the company experienced a 50%+ drop in its share price last year. This occurred while the government was reviewing ways to revamp statutes for bad credit lending practices currently in place.
Managing director of Cash Converters, Peter Cumins, said the company decided that it had the best opportunity to profit in Australia as the payday lender holds a dominant share of the short-term lending market in the country. He added that recent data from the government shows that the market in Australia in short-term lending was promising and that the consumer base was continuing to grow.
The company also plans to stop operating its auto-financing business known as Carboodle because volume growth for the company has proven to be too low. Instead, the company plans to make a switch to the formation of a secured auto-lending business. Cash Converters says that its expansion plans in the Australian market include offering a wider selection of loans, including financing that features medium-amount type loans up to $5,000.