Cash Converters and Cash Crusaders are moderately old companies in South Africa that offer second-hand and loan products. These companies offer a wide range of loans to qualifying South Africans. This article draws a comparison between the two companies to help save you time to determine which one would be best for your specific needs.
Cash Converters is an international franchise with more than 85 stores in Southern Africa from Cape Town in the Western Cape all the way to Johannesburg. The company started as a secondhand retailer and has since evolved into a loan provider, issuing two types of loans.
Currently, it sells almost any consumer product you can think of, from baby care products and musical instruments to iPads and bread makers. They buy second-hand products, keep them in inventory, advertise them online and in-store, and then sell them to a willing buyer. If you have something to sell, you can sell it to them. They will first confirm its value at one of their stores or online before buying it.
Requirements to Sell
To sell to them, you must be:
- Aged 18 years and above, and
- Identifiable using a green bar-coded ID, a Smart-ID, a driving license or a Passport if you are South African, and a passport if you are a foreigner.
The two kinds of loans provided by the store are Pay Day Loan and Cash Advance Loan. Pay Day Loans are given to people with salaries. Because the lender does not take any of your property to be used as collateral in case you default on the loan, it is called an unsecured loan. This loan is repaid through DebitCheck, a secure debit order transfer. Essentially, the store immediately gets your next salary and deducts the loan plus additional fees directly from your account using this transfer. To qualify for the PayDay loan, you have to:
- Be a South African citizen (for which you will have to provide proof using any of the four documents mentioned above and provide a proof of residence),
- Have permanent employment (for which you will have to provide your most recent payslip),
- Be 18 years of age and above,
- Ensure your salary bank account is registered for cell phone banking,
- Ensure your cell phone is registered with RICA (Regulation of Interception of Communications and Provision of Communication-Related Information Act), and include contact details for friends and family.
Cash Advance Loans are given to people with property that can be used as collateral (a secured loan). Customers repay this loan within 30 to 31 days after receiving it. It is due on the same day of the next month. To apply for the loan, visit the Cash Converters store near you with the property or go online. Attendants will evaluate the item at the store and tell you how much you can get as a loan with it. Online, you will send pictures and proof of the item’s quality and then wait for the store to evaluate your item. Cash converters review every loan application, no matter your credit history. They will then send you an offer. After you accept the online or in-store offer, you are either given the loan in cash or loaded onto the Cashies Card. Which is a VISA card offered by Cash Converters for cashless transactions.
To get this cash loan, you have to:
- Prove your identity (with a green bar-coded ID, Smart-ID, driving license, or passport),
- Be 18 years of age and above,
- Prove that you own the item you bring present for use as collateral.
Any of the two personal loans will cost you:
- 5% interest per month for the first loan,
- 3% per year for any other loan you take within 12 months after the first,
- An initiation fee of R165 that does not include the VAT, which is 15%
- A monthly service fee of R60 (pro-rated) that does not include the 15% VAT, and
- 10% of any amount from R1,000 to R1050 (not inclusive of 15% VAT) that does not go above 15% of the loan.
Cash Converters also offer potential business partners a chance to own a company franchise or be future landlords. Potential Cash Converters franchise owners must have business experience, people skills, industriousness, high energy, entrepreneurship skills, and the desire to own and run a business. A start-up for the company franchise costs R3,737,500 for 250 square meters of space. You will have to pay half of that that upfront and seek alternative investors or lenders for the rest.
Potential landlords are welcome to reach out to the company if they want to rent space out for a Cash Converters store. The company wants stores with:
- Good accessibility,
- Adequate parking space at the front of the store,
- Good visibility,
- A satisfactory number of national brands and retailers, and
- Numerous and sizable signage options.
Cash Crusaders links sellers and buyers of second-hand goods, offers loans, and welcomes opportunities to potential business partners. Unlike Cash Converters, however, Cash Crusaders sells brand new items. Buyers can get these items for sale from popular brands like Doogee, Amber, Sanchez, Dixon, and DXN Pro.
The company has a big catalog of second-hand products in its stores sourced from sellers and made available both online and in-store. To help buyers locate the walk-in stores, they avail an online store locator. to buyers. Selling to Cash Crusaders can also be done online or offline. You will provide your details and show the item you want to sell on both platforms. Present it for evaluation in-store, but use photos online. The photos should be well taken, showing as much detail about the item as possible, including the box and accessories if they are available. After which, you wait for a quotation. If you accept the quotation, you will be paid.
There is only one kind of loan with Cash Crusaders, a loan against one of your properties (a secured loan). This means you must offer an item up as collateral before you get the loan. If you apply online, you will have to wait while the product is being evaluated. You leave your contacts with them while applying. When the evaluation is done, you are sent a quotation for the loan you can receive. After which, you drop off the item at your nearest store and collect your cash. In-store applications are fairly straightforward, on the other hand. You walk in, present the item, wait for evaluation, accept the proposed amount then get the loan.
Requirements for Loan Qualification
There is no payslip required here or credit checks done to qualify you for this loan. You only have to:
- Ensure that the item you have for sale is completely paid off,
- Be 21 years old and above,
- Ensure that the items are in perfect working condition.
The company gives potential franchisees a chance to own one of their stores at a low cost for franchise partnerships. Lastly, landlords can rent out to CashCrusaders. They require the rented spaces to have:
- Good visibility,
- A reasonable number of national brands and retailers in the neighborhood,
- Safe parking close to the entrance, and
- Easily accessible and sizable signage options.
Between the two, Cash Converters is more all-rounded. It has more online presence, a greater range of second-hand products, and one more loaning option. It also has extra features like the Cashies Card option for cashless payments.
For unsecured loans, Cash Converters is your best bet. Provided you fit the criteria they require for the loan. It is important to note that the most defining requirement is the fact that you must be permanently employed.
If you are looking for a secured loan, either two will do. With Cash Crusaders, you get anywhere from between R1,000 and R15,000 to finance your immediate needs. With Cash Converters, you get an option to extend your loan beyond a month and get a lesser interest rate (3% as compared to 5%) charged for the next 11 months that follow.
If you are a buyer looking for good second-hand items, go with Cash Converters. The shop has a wider range of second-hand items you can buy that are still in good condition. For brand new items, go with Cash Crusaders. It offers products from well-known brands like Doogee, Amber, Sanchez, Dixon, and DXN Pro.
If you are looking to own a franchise, the choice you go for will depend on your available capital. With Cash Converters, you must have R3,737,500. But only R1,868,750 to sign on. The other R1,868,750 can be sought from an investor or lender to complete the franchise ownership deal. A deal you will benefit from because they offer additional services to franchisees. For example, they offer training at the start of business. They also provide occasional training to existing franchises through the Cash Converters Training Academy. With coaching from their experts with 100 years in-field, Cash Converters promises that you and your store staff will get the best training to move your business forward.
On the other hand, if you do not meet Cash Converters’ asking price, Cash Crusaders is an excellent alternative to register – you won’t be disappointed. The store has been in the game since 1996 and is still growing.