The Premier Companies Kick Off 2009 Convention

The Premier Companies kicked off its 2009 convention in New Orleans Monday with a golf tournament and welcome reception. The foursome of The Premier Companies franchisees Trini Rubio, Roy Soto, Brian Clussman and Dave Jones took first place with a seven under par 65. Premier franchisees and vendors gathered Monday evening at the Omni Hotel near Bourbon Street for a welcome reception featuring local jazz musicians.

The Premier Companies has grown from 4 stores to nearly 80 in five years. Founder and CEO Trooper Earle predicts the company will surpass 100 locations during 2009 despite the tight commercial credit environment. With so many new single-store franchisees, insiders say that the next big growth spurt for Premier will come all at once as relatively new owners open planned second and third locations.

Premier began as a rent-to-own company focusing on traditional products. Over the past few years, the company has expanded by developing franchise models for custom wheels, financial services, retail home furnishings and automobiles with Premier Wheel Workz, Premier U-Getcha Cash, Premier Home Furnishings and Premier Rent-N-Ride.

What affect has the faltering economy had on the rent-to-own industry in general and Premier in particular? The Premier Companies founder and CEO Trooper Earle told RTO Online in an interview Monday (view) that access to commercial credit credit, while still available, has been profoundly affected. "Bankers look like a deer in the headlights," Earle said.

Earle says that the rent-to-own industry is being affected by the same tightening of credit that affects other retail sectors. Loans that would have been approved rapidly just a few months ago, now take more time. The problem isn't a lack of money to loan, it is an overabundance of caution on the part of banks and loan officers that are as much in the dark as to where the economy is going as the rest of us.

Even considering the extreme caution on the part of commercial lenders, Earle says the issue is not insurmountable - with the right plan. "They want borrowers to have a little more net worth and some reserve money," Earl explained. "We're adjusting to that." In addition to the credit crunch, the SBA added additional requirements that can slow the approval process if not planned for.

"The last two or three months have been chaotic." But with the presidential election out of the way, Earle is seeing signs that things may loosen up. "I really believe that in the next few weeks things will change and business for us will be back to normal."

Furniture retailers were one of the first groups to feel the impact of the credit crunch. Premier Home Furnishings is a franchise that successfully marries rent-to-own furniture and retail furniture in the same location. Earle says the retail portion of the Home Furnishings division has dropped dramatically. The rent-to-own part of the business has picked up but, Earle says, "The adjustment isn't fast enough." Premier is conducting seminars this week for its Home Furnishings franchisees to help implement a plan of attack for raising revenue.

The custom wheel business has been affected but not to the extent of other sectors. Earle credits the experience and successful track record of Dale Ingram, President of Premier Wheel Workz, and Tommy Crenshaw, Vice President Operations, with overcoming the banks caution. "We really haven't seen too much of a slowdown."

Despite the economic turmoil, Earle takes an optimistic view that comes from decades of experience. He expects these issues to work themselves out in 2009. "You just have to give it time."

In a tight credit environment, Earle says bankers value experience as much as equity. "Bankers want to know that their money is secure." And loaning to a person that has experience and that will work in the store every day, lowers the bank's risk.

Premier is focusing more than ever on franchisee support. The company is adding additional expert staff to work in the field supporting franchisees in all divisions. The addition of field personnel is a huge change for Premier, but one that is aimed at making franchisees more profitable. Field reps will hold regional and in-store training seminars for franchisees that are aimed at improving business processes.

The convention's General Session begins Tuesday morning. RTO Online will be broadcasting video interviews with franchisees throughout the day Tuesday and Wednesday. Please check www.rtoonline.com for updates.

RTO Online is the official channel for Rent-to-Own Industry News and the only independent source of news for the rent-to-own, rental-purchase, lease-purchase trade. RTO Online (Rent to Own Online) represents the choice of the entire RTO Industry for trusted information, as it happens.

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