The following article is a case study of Cash Connection that is a business involved in the short-term lending. Moreover, the article has tried to differentiate its services in a fast growing business that keeps changing because of many factors like saturation in the market and federal government regulations. Allen Franks formed Cash Connection in 1986. At that time, only a few companies were competing in the short-term cash lending. However, in the last decade there has been a lot of changes in that industry such as the increase in more than 22,000 payday advance locations across the United States, that is a higher number than the 9,500 banks throughout the country. Although, this growth attributed mainly to the traditional existence of financial institutions from the small ones, short-term credit in the market is accounted for the bigger structure. The increased cost of bounced check and the rise in regulation of the payday advance services has had a significant influence on the financial performance of companies like Cash Connection. Another major contributing factor to this is the fact that there has been an increase in the regulation laws by the federal government making the rules stricter. One can see below the financial performance of Cash Connection for the past three years.                       Jan – Dec 2007  Jan- Dec 2008  Jan – Dec 2009 Total Income          6,348,544       6,283,860      5,768,805      Total Expense         5,017,173       5,488,623      5,569,912      Net Operating Income  1,331,171       795,237        198,893        Net Income            1,336,617       342,689        271,961         As seen above, there is a significant change in the net profit especially from the closing financial year 2007 to 2008, with a staggering difference of $993,928. The difference of the year 2008 in comparison with 2009 is only $70,728. However, from the profit and loss statement one can also notice an increase in the total expenses rising from the year 2007 to a total of $5,569,912 in the year 2009. This decline, though, can be mainly accounted for the increasing number of rivalry firms in the operating industry including banks and micro loan firms. They are now realizing the attractiveness of the short term lending business thus they are differentiating through packaging more attractive offers, hence becoming more appealing to customers. This means that they become more competitive. Although, it cannot be the only reason, since there has also been a significant decline in the country’s economy as a whole. This shows that the industry’s growth has slowed. The number of potential growth in market size of rival companies is also an attribute of the decline in the net income. Competitiveness and rivalry in the payday loan business rises with companies competing to acquire the biggest industry share. Using the tows matrix one can use it to analyze Cash Connection both internal and external position.                Strengths                                                           Weaknesses                                              Opportunities    * Early entrance into new markets                                   * Customers perception of the short term payday loan                   * Offering services other than payday advances and check cashing    * The two requirements established by Cash Connection