Kyle Heintschel,
National Sales Director
Glenview Finance
There’s always been a debate among buy here-pay here dealers as to whether to sell their finance contracts to a third-party capital provider, or hold on to the notes, assume all the risk themselves, and reap the financial rewards providing their customers pay as agreed.
There’s a lot to be said for operators holding notes who have enough capital on hand or can easily access the capital they need to grow their portfolio, absorb expected and unforeseen losses, manage a collections team, handle delinquencies, charge-offs, compliance issues, human resources, and the list goes on.
There are, however, many dealers who need steady access to capital, and don’t want to enter a complicated financial arrangement with a third party who provides a line of credit at high interest rates based on their portfolio performance.
Capital providers are obviously in business to create wealth for their enterprise. Providers that don’t ensure both their company and the dealers they serve are profitable, however, do a disservice to the industry, and will ultimately get hit by poor reviews from dealers and consumers alike, and potentially draw scrutiny by regulators, as well they should. Every deal should be good for the dealer, the consumer, and the capital provider. While the process can be a game of brinksmanship, it’s not overly complicated.
When finding a partner to provide capital for finance contracts, dealers should look at every aspect of the agreement, run the numbers for and anticipated time they expect to need cash, have their general counsel look over the contractual agreements, and closely scrutinize the policies and procedures that govern all aspects of the deals including but not limited to: marketing and advertising; disclosures; underwriting; collections; buy- backs; and of course GPS and insurance requirements. Dealers should be thorough, ask a lot of questions; and make sure the program meets their immediate needs, and can sustain their desired future growth.
So, who should consider a program like that provided by Glenview Finance:
Dealers who want to grow, and need access to capital
Those who don’t want to be burdened with hiring and managing a team of collectors
Dealers looking for another avenue to fund their subprime turndowns, or highly discounted contracts
Those looking to infuse their business with instant capital for new and existing BHPH accounts
Dealers wanting to accelerate their profits, and maintain steady back-end cash flow
Dealers who don’t want to make major changes to their operations and procedures to fit the demands of a third-party capital provider
Retail dealers who understand the importance of having multiple revenue opportunities
For more information contact me anytime at (713) 478-7455 or via email at kheintschel@glenviewfinance.com