Securing this additional credit specifically for Pay Day Loans gives ColorTyme franchisees the capital to fund Pay Day Loan programs, as well the additional tools needed to use it – software, training, and security measures
Sam Lowe, ColorTyme Vice President of Operations

ColorTyme President Bob Bloom (right), and  Director of Franchisee Development and Finance Pat Sumner at the recent APRO convention in Las Vegas, Nevada.

ColorTyme, Inc. announced today it has secured an additional line of credit to support Pay Day Loans, one of ColorTyme’s newest growth ventures for ColorTyme franchisees.

The company finalized a new $5 million dollar line of credit for Pay Day Loans to add to the existing $15 million dollar line of credit for traditional rent-to-own with Texas Capital Bank. ColorTyme currently has an additional $50 million dollar line of credit with Wells Fargo Foothill/Comerica Bank supporting the traditional rent-to-own portion of the business, making a total of $70 million in total credit line to support the company’s steady growth.

Currently, 19 ColorTyme stores across the U.S. offer Pay Day Loans. ColorTyme anticipates adding Pay Day Loans in 40 additional locations by the end of 2006. Sam Lowe, ColorTyme Vice President of Operations developed the Pay Day Loan program for ColorTyme and will be responsible for implementing program in the new stores.

photo rtoonline ColorTyme Vice President of Operations Sam Lowe  (below) developed the Pay Day Loan program for ColorTyme and will be responsible for implementing program in the new stores.

“In an industry that is becoming increasingly competitive, it’s important that ColorTyme provides not only excellent support for our franchisees through training, marketing and other programs, but also provides them with diverse service to offer their customers,” Lowe said. “Securing this additional credit specifically for Pay Day Loans gives ColorTyme franchisees the capital to fund Pay Day Loan programs, as well the additional tools needed to use it – software, training, and security measures.”

ColorTyme Director of Franchisee Development and Finance, Pat Sumner attributes ColorTyme’s partnership with Texas Capital to the strong relationship developed with Reed Allton at Texas Capital. “Working with Reed has allowed us to really step up in supporting ColorTyme franchisees since 2002,” Sumner said. ColorTyme’s long relationship with Allton dates back to 1994, when he worked for Comerica Bank.

“We’ve already established a remarkable history of success with Pay Day Loans through ColorTyme franchisees, like EBRO International in Florida,” Allton said. “We’re ecstatic to continue supporting ColorTyme and this extension of their traditional business. Our long standing relationship with them is because we understand what ColorTyme needs to offer to their customers.”

ColorTyme, Inc. is the oldest franchised rent-to-own or rental purchase company in the United States with more than 275 stores. Now in its 25th year, the company has launched an aggressive franchise development plan and is on track to grow significantly in the next five years with many of its newest locations being developed by rent-to-own professionals.

For more information: www.colortyme.com