An Ohio storefront alternative lender has filed for a $230 million initial public offering, as traditional banks maintain a tight-fisted approach to consumer lending.
Community Choice Financial Inc., based in Dublin, Ohio, offers short-term loans, check-cashing services and prepaid debit cards to low-income customers. It said it wants to raise the funds to make acquisitions or pay down debt.
The IPO comes about four months after the company acquired CCCS Corporate Holdings Inc., which operated about 140 check-cashing stores in California.
Community Choice is backed by the private equity fund Diamond Castle Holdings LLC, which has also invested in Jacksonville, Fla.-based EverBank Financial Corp.
Community Choice reported consolidated, pro forma revenue of $310.4 million for 2010.
Last year Community Choice generated $1.47 billion in short-term consumer loan volume, the company's primary product. In addition to short-term loans, Community Choice also offers check cashing, title loans and prepaid debit cards to "unbanked and underbanked consumers," according to its prospectus, filed on Tuesday.
The lender estimates the size of the unbanked/underbanked market at about 60 million people or about a quarter of U.S. households.
Community Choice operates 433 stores in 14 states. In its prospectus, Community Choice named Wal-Mart Stores Inc.'s Money Center as one of its biggest competitors.
