ReclaimHub Business Plan › Section 2 › Investment Highlights

• Proven, defensive category. Second-hand retail
  and pawn lending are counter-cyclical: demand for affordable goods and
  instant liquidity rises precisely when household finances tighten. The
  Cash Crusaders precedent validates scale economics in the South African
  market.
• Three uncorrelated profit centres. Second-hand
  arbitrage, new-goods retail and secured lending diversify margin and
  smooth cash flow; refurbishment converts intake into higher-margin
  resale.
• High inventory velocity and cash conversion.
  Fast turnover of intake and short 30–90 day pawn cycles generate rapid
  cash recycling, supporting the growth of both inventory and the loan
  book.
• Structurally strong returns. Equity IRR ranges
  from 46% (downside, 6.0x exit) to 85% (base, 7.5x exit) on the R1.4bn
  equity tranche, with multiple credible exit routes.
• Financial-inclusion and circular-economy impact.
  The model extends product lifecycles, diverts e-waste, and provides
  regulated, transparent secured credit to an underserved
  liquidity-stressed population.
• Honest, structured funding architecture. This
  plan sizes the warehouse facility, debt-service reserve and equity-first
  sequencing explicitly — converting the plan’s principal risks into
  underwritable structure.

2.1 Indicative returns

The spread between the base and normalized cases is the single most
important number in this plan: it quantifies the sponsor’s margin
optimism. We recommend investors underwrite to the normalized case and
treat the sponsor case as upside.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of ReclaimHub Retail Group (Pty) Ltd.