American pawnshops move business to Mexico

Recently, several pawnshops based in the U.S., and especially Texas, have found success in expanding their businesses into Mexico.

One of the firsts to expand was Arlington-based First Cash Financial Services.  The pawnshop and payday lender has opened 420 stores in Mexico and attributes more than 50 percent of its revenue to operations in Mexico.

First Cash chairman and chief executive Rick Wessel said of the business’s expansion, “Eighty percent of our store openings are in Mexico.  As the quarters and years roll by, it will become more and more important to the overall picture.”

Fort Worth-based pawnshop Cash American International and Austin-based EZCorp are just two other examples of some of the businesses that are investing money into Mexican business ventures.

One financial analyst explains the trend, stating, “The U.S. regulatory environment has created all kinds of headline risk.  What these companies have done is look for alternative forms of growth.”

If you are considering expanding your business into Mexico and are seeking the help of an experienced attorney, contact the Mexico business lawyers of Hernandez-Ojeda by calling 800-673-1995 today.