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Amazing Loans sells franchise, spreads wings

Unsecured personal loans provider Amazing Loans is preparing to open more than 30 branches in the next 18 months after selling its master franchise for $4.4 million .

The Sydney-based company yesterday announced it had sold its master franchise to Amazing Loans Franchises Pty Ltd.

A company statement said Amazing Loans Franchises yesterday paid $2.4 million in deposit for Amazing Loans Franchise with a $2 million balance of consideration due immediately.

The master franchise excludes NSW, the ACT, Melbourne and Brisbane metropolitan areas, Geelong and the Gold Coast.

Amazing Loans chairman and chief executive Paul Mathieson said Amazing Loans Franchises planned to open more than 30 branches in the next 18 months.

The Sydney lender, which offers personal unsecured loans from $1000 to $5000, is aiming to become a leading provider of consumer finance in the micro-lending market.

Under the agreement, Amazing Loans will be allocated 5million ordinary shares, which represents a 20 per cent initial shareholding, in Amazing Loans Franchises for no cost.

Mr Mathieson said Amazing Loans Franchises' primary role was as a loan originator and it would be responsible for all fitout, advertising, and branch operating costs.

The company's previous agreement with Investment Evolution Private Equity Pty Ltd had been terminated, with Amazing Loans to refund the $2 million, he said. Mr Mathieson said the company would provide an updated profit outlook "as soon as all relevant information is available".

source : http://www.theaustralian.news.com.au

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