THE COMPANY
 Square One makes small loans to  customers  with sub-prime credit histories.  Approximately 65% of our customers are  women whose credit histories often reflect  the financial trauma of divorce or unplanned  medical expenses. The majority of transitional credits, that is, customers who will start at Square One and seek to improve their credit records by timely repayment, are also women.

All local lending institutions participate in the sub-prime market to some degree. For example , the fees which banks earn from NSF (overdrawn) checks account for a surprisingly high percentage of their non-interest income. Our Cash Advance Loan Product is based on a very similar structure offered by a major regional bank. There are also more than a dozen small loans companies in the local area. However, few of these companies seek to develop long-term relationships with sub-prime borrowers.

Square One sees a potential for profitable business by approaching the market differently. The name Square One is intended to convey fair and honest dealing, as well as a place to start making a change in circumstances, habits and financial profile. The office layout is attractive and welcoming.

Square One is also the most price competitive sub-prime lender in the Billings market, and c ustomer response has been brisk. We are the fastest growing small loans company in the region.

Since we spend more on marketing than the competition and our prices are lower, it follows that we have tighter margins as well. However, the business model has some important compensating advantages. We are able to gain customers at a faster pace and we have the business expertise and customer relationships to offer additional loan products. This gives us the potential for making more profit per location than the competition. Eventually, we have the potential to grow out of the sector completely.