|
|
First Cash Pawn
Shops are based out of Arlington, Texas, and the company has over 200
locations (about 50 of which are in Mexico).
In Mexico, pawn shops are a principal lending
source, whether long or short-term loans.
First Cash Pawn Shops are considerably larger
in Mexico due to the necessity of the lending need, offering payday
loans to residents.
Most consumers
in Mexico do not have checking accounts and deal with pawn shops daily
for short-term loans and merchandise purchases.
First Cash Pawn Shops are in direct
competition with Nacional Monte de Piedad, the largest pawn shop chain
in Mexico, which is owned by the government and offers similar payday
loans. However,
with fewer licensing requirements, zoning restrictions, and
competitors, the short-term loan industry proves to be extremely
profitable for First Cash Pawn Shops in Mexico.
Most stores
offering payday loans are located along the border, although several
locations are as far south as Monterrey (150 miles south of Laredo,
Texas). The
short-term loan provider’s stock went up more than 180% in 2003 alone,
as the short-term loan is becoming more and more sought after.
Short-term
loans are popular among those who need quick cash or would not be
approved for a loan should their credit be checked.
Any item of value can be used as collateral
for a short-term loan, which usually requires repayment within a period
of 30-90 days. Short-term
loans are often needed for unexpected bills, such as car repairs or
medical bills.
Although
First Cash Pawn Shops in America are still making a substantial profit,
and Rick Wessel (President of First Cash Pawn) does not expect business
of payday loans north of the border to slow anytime soon, the company
plans to move more into the Mexican market as part of its strategy to
prevent loss, should the economy cause problems for pawn shops.
New!
Paycheck loans now easy to get online!
Online cash advances now available
|
