Oct. 21, 2009 (Business Wire) -- Dollar Financial Corp (NASDAQ:DLLR), a leading international diversified financial services company serving unbanked and under-banked consumers, today announced the acquisition of a merchant cash advance business in the United Kingdom.

The acquired company primarily provides working capital needs to small retail businesses by providing cash advances against a percentage of future credit card sales. As part of the business model, the merchant’s credit card processor, typically a third party bank, directs a predetermined percentage of the merchant’s future daily credit card receivables to the acquired company until the advance is paid back in full. This repayment process substantially reduces any risk of repayment default. The acquired company was “first to market” in the United Kingdom in 2005 and is still the only significant participant in this emerging industry.

Commenting on the acquisition, Jeff Weiss, the Company’s Chairman and Chief Executive Officer stated, “We are very excited about this acquisition, which further diversifies our Company by expanding into the small business financial services market. We believe financing the working capital needs of small businesses is a significantly under-served market with a potential opportunity encompassing approximately 400,000 small retail merchants in the United Kingdom. We enthusiastically welcome the management team of the acquired business into our rapidly expanding Dollar Financial group of companies. This team, along with their proven sales platform, systems and processes, are well positioned to take advantage of the significant opportunities in this growing industry.”

The purchase price for the acquired company, which currently manages a receivable portfolio of approximately $3.0 million, was $4.9 million. The Company anticipates as the growth of the receivables portfolio has been constrained historically by the working capital limitations of the acquired company, Dollar expects this business has the potential to grow substantially in the coming year.

About Dollar Financial Corp

Dollar Financial Corp is a leading diversified international financial services company primarily serving unbanked and under-banked consumers. Its customers are typically service sector individuals who require basic financial services but, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions.