Cash Generator
Encyclopedia
Cash Generator is a UK
-based operator of discount retail stores. Headquartered in Bolton
, Greater Manchester
, the company opened its first Cash Generator store in the centre of Bolton in 1994 and by the beginning of 2011 had expanded to over 130 stores, many of which are operated by franchisees
.
The company describes itself as 'The Buy, Sell & Loan Store'. Its core business is the buying and selling of pre-owned
domestic goods, mostly electrical and entertainment goods. From this it has diversified into a number of other personal financial services such as cheque
cashing, money transfer
and payday loan
s.
, Greater Manchester
in 1994. At that point, the business was named Paragon Pawnbrokers Ltd.
store opened in 1997. Since then, the company's growth has been driven by the opening of franchise stores. At the beginning of 2011, over 100 of the company's stores are owned and operated by franchisees. One in three Cash Generator franchisees open more than one store. The company claims to have identified 500 potential sites for future stores.
, including photo identification and proof of address, to avoid fraud. Since operations began in 1994, the company claims to have purchased over 30 million individual items from the UK public.
. The company's financial director is Steven James Wilkinson.
In December 2010 the company was acquired by U.S.-based financial services group Axcess Financial for an undisclosed sum.
. The total investment required to start a Cash Generator franchise has been estimated between £200,000 and £250,000. Of this figure, between £70,000 to £80,000 is expected to be personal investment. The company is currently inviting applications from Master Franchise partners for overseas markets in Europe.
. The charity's logo appears in the company's TV advertising.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based operator of discount retail stores. Headquartered in Bolton
Bolton
Bolton is a town in Greater Manchester, in the North West of England. Close to the West Pennine Moors, it is north west of the city of Manchester. Bolton is surrounded by several smaller towns and villages which together form the Metropolitan Borough of Bolton, of which Bolton is the...
, Greater Manchester
Greater Manchester
Greater Manchester is a metropolitan county in North West England, with a population of 2.6 million. It encompasses one of the largest metropolitan areas in the United Kingdom and comprises ten metropolitan boroughs: Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan, and the...
, the company opened its first Cash Generator store in the centre of Bolton in 1994 and by the beginning of 2011 had expanded to over 130 stores, many of which are operated by franchisees
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
.
The company describes itself as 'The Buy, Sell & Loan Store'. Its core business is the buying and selling of pre-owned
Second Hand
Second Hand is the title of an album by Mark Heard, released in 1991, on Heard's own Fingerprint Records. The album was listed at #4 in the book CCM Presents: The 100 Greatest Albums in Christian Music ....
domestic goods, mostly electrical and entertainment goods. From this it has diversified into a number of other personal financial services such as cheque
Cheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
cashing, money transfer
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
and payday loan
Payday loan
A payday loan is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card...
s.
History
Cash Generator was founded in 1994 by British businessman Brian Lewis. Having noticed the success of a similar business in the U.S., he decided to emulate the business model in the UK and opened his first store in BoltonBolton
Bolton is a town in Greater Manchester, in the North West of England. Close to the West Pennine Moors, it is north west of the city of Manchester. Bolton is surrounded by several smaller towns and villages which together form the Metropolitan Borough of Bolton, of which Bolton is the...
, Greater Manchester
Greater Manchester
Greater Manchester is a metropolitan county in North West England, with a population of 2.6 million. It encompasses one of the largest metropolitan areas in the United Kingdom and comprises ten metropolitan boroughs: Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan, and the...
in 1994. At that point, the business was named Paragon Pawnbrokers Ltd.
Company name
Within the first year of opening, the company changed its name to Cash Generators. Brian Lewis decided upon the name after changing other elements in response to customer feedback: "When theory hits practicality, practicality always wins. For instance, the original name was 'Paragon', but we changed it because it didn't say what we did. We are a 'cash generator'."Initial growth and expansion through franchising
After expanding the chain to five stores in the north of England, Lewis decided to sell his other business holdings to concentrate on franchising Cash Generator throughout the UK. The first franchisedFranchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
store opened in 1997. Since then, the company's growth has been driven by the opening of franchise stores. At the beginning of 2011, over 100 of the company's stores are owned and operated by franchisees. One in three Cash Generator franchisees open more than one store. The company claims to have identified 500 potential sites for future stores.
Addition of out-of-town stores
In 2009 the company launched its new 'Express' store concept for out-of-town retail locations. The first outlet opened in Stretford, Manchester in 2009, followed by a second franchise-run location in Birmingham.Operations
As of January 2011 there are 134 Cash Generator stores operating in the UK, the majority of which are franchise operations. A further 18 stores are planning to open during 2011. The average store receives 5,000 visits a week. In 2009 the company launched CashGenerator.co.uk as a fully transactional website that allows customers to browse and shop online.Retail operations
The company's core retail activity is the buying and selling of second hand goods, mostly electrical and entertainment goods such as televisions, laptops, game consoles, hi-fi equipment, mobile phones and cameras. Other lines include gold jewellery, musical instruments, toys and domestic goods. The stores also sell new and graded domestic goods. For purchasing customers the company offers a 12 Week Plan, which involves leaving a 20% deposit on any item and paying the balance over the following 12 weeks.Buying Counter
In eash store a Buying Counter offers customers instant valuations on their items. The company's Sale & Buy Back service gives the customer the option of buying back their goods at a higher price within 28 days. The company only buys goods from over-18s and takes two forms of IDID
ID, I.D. or id may refer to:* The id, ego, and super-ego comprise the psychic apparatus defined in Sigmund Freud's structural model of the psyche- Abbreviations :...
, including photo identification and proof of address, to avoid fraud. Since operations began in 1994, the company claims to have purchased over 30 million individual items from the UK public.
Financial services
Since the opening of the first store the company has offered cheque cashing for customers, who can cash various cheques such as wages, compensation, inland revenue or repayment cheques in store for a handling fee plus a small percentage of the value of the cheque. Over time the company has expanded into other areas of cash-based financial services. Some of these services are offered in partnership with third parties.- Short term lending. Customers can apply for instant cash loans ("payday loans") of up to £Pound sterlingThe pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
700 via the company's website. Customers who own a car can also access loans between £500 and £50,000 through the company's partnership with Logbook Loans. - Pawnbroking. Through its pawnbrokingPawnbrokerA pawnbroker is an individual or business that offers secured loans to people, with items of personal property used as collateral...
service the company offers customers loans for up to 6 months on their gold and jewellery. This service is not yet offered at all stores and managing director Julian Urry says pawn broking currently accounts for about 1 per cent of group business. - Prepaid card. The company also offers a prepaidStored-value cardA stored-value card refers to monetary value on a card not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card...
payment card, branded the Freedom Prepaid Mastercard, in partnership with a third party provider, White Eagle. - Foreign currency exchange. Currency exchangeBureau de ChangeA bureau de change or currency exchange is a business whose customers exchange one currency for another. Although originally French, the term bureau de change is widely used throughout Europe, and European travellers can usually easily identify these facilities when in other European countries...
is offered in store on 60 currencies. - Money Transfer. Cash Generator customers can transfer money to recipients worldwide using the Western UnionWestern UnionThe Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
money transferWire transferWire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
service. - Debt advice. Through a partnership with Chiltern Debt Management the company now offers debt advice to customers, which is free at the point of enquiry.
Corporate affairs
Since its foundation in 1994 the company has shown year-on-year growth in all its income streams in every year it has been trading. In 2009 the total retail sales of the group amounted to £73.6 million; overall gross profits were £30.1 million.Directors
Julian Urry, the company's Managing Director, joined Cash Generator in October 2004. Before that, he had worked for six years as CEO of competitor company Cash ConvertersCash Converters
Cash Converters International Limited is a worldwide pawnbroking franchise company. They also offer small financial loans to people. -Australia:Cash Converters International is a franchised retail network listed on the ASX and London Stock Exchange....
. The company's financial director is Steven James Wilkinson.
Management buyout and subsequent acquisition
On 9 April 2008 three directors, Julian Urry, financial director Steve Wilkinson and franchising director Robin Page, with additional finance from New World Corporate Finance bought out founder Brian Lewis, forming a new company (Cash Generator Holdings Limited) in the process. Lewis remained as a shareholding non-executive director.In December 2010 the company was acquired by U.S.-based financial services group Axcess Financial for an undisclosed sum.
Franchise model
Since 1997, the business has grown mainly through franchisingFranchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....
. The total investment required to start a Cash Generator franchise has been estimated between £200,000 and £250,000. Of this figure, between £70,000 to £80,000 is expected to be personal investment. The company is currently inviting applications from Master Franchise partners for overseas markets in Europe.
Logos and slogans
Stores originally carried the strapline "The Buy & Sell Store". To reflect the increasing availability of financial services, the slogan has been updated to "The Buy, Sell & Loan Store".Charity connection
The company's adopted charity since 2008 is the Make-A-Wish Foundation (UK)Make-A-Wish Foundation
The Make-A-Wish Foundation is a 501 non-profit organization founded in the United States that grants wishes to children who have life-threatening medical conditions. The charity now operates in forty-seven countries around the world through thirty-six affiliate offices.The president & CEO of this...
. The charity's logo appears in the company's TV advertising.
Trade Bodies and Accreditations
The company has the following memberships and accreditations:- Full members of British Franchise Association
- Members of BCCA (British Cheque & Credit Association)
- Investors in PeopleInvestors in PeopleLaunched in 1991 Investors in People is a business improvement tool administered by UK Commission for Employment and Skills and supported by the Department for Business, Innovation and Skills ....
-registered provider of training and development.