3. Opportunity Overview
Hundreds of Thousands of Tenants Abandon Their Storage Lockers Annually.
There is currently no short-term financial relief available to self-storage
tenants in financial duress.
Self-storage tenants most often abandon storage lockers because of
financial hardships and death.
Tenants and their family members need financial assistance to retain their
valued personal items and heirlooms
The self-storage industry in the U.S. generated
$24 billion in 2013. Wall Street analysts have
called the industry “recession proof” and say it
is the fastest growing real estate segment in
the country (Self Storage Association, 2014)
4. Market Size
Each Year Nearly 2 Million Tenants Default on their Storage Contracts
2 Million
Tenants Default
Annually
$4.5 million
in Revenue
Realized Annually
Estimate doesn’t include
revenues realized from
franchise fees.
600,000
Clients Acquired
Annually
$3 million
Secured Loans
Issued Annually
$1.5 million
in profit
achieved
annually
5. The Business Structure
Administration
Sales & Marketing Management Team
Finance & Accounting
Correspondence
Record Keeping
Phone Screening
Customer
Engagement
Lead Generation
Promotional
Activities
Books/Payroll
Accounts
Receivable
Application
Approvals
Dispute
Resolution
Property
Acquisition
Tax Preparation
6. High-level Business Process
Tenant
Defaults
Customer
Contact
Loan
Application
Management
Review
Loan
Repayment
Seize &
Auction
1
2
4
6
5
3
Self-storage facility recommends Advance Storage Lenders. Leads
are developed through the sales team, referrals and e-commerce.
Application is completed by customer with the assistance of sales
associate.
Finance department receives timely repayment and releases
personal property back to self-storage tenant.
Sales Associates contact customer to qualify lead and present value
proposition and terms of contract.
Management team assesses the credit worthiness of each applicant
and overall merit of promissory contract. Approve or disapprove.
Unresolved accounts are reclaimed by Advance Storage Lenders,
property is appraised and auctioned via online storefront.
7. Franchise Expansion
Advance Storage Lenders plans to open its first two
physical locations in Southern California by January
1, 2015.
Advance Storage Lenders management team will
approve additional franchises for a standard
franchising fee.
Advance Storage Lenders will collect a 2% royalty
fee from all transactions at approved franchises
Marketing team will promote franchise
opportunity with enterprise technology and low
start-up costs
Most short-term lending companies open their doors with less than $2,500 in startup costs.
