Home / Finance / Ge Consumer Finance | FinCo Management Secures Credit Facility And Growth Equity To Launch Lending ?
May 23, 2011 by ?
Filed under Finance
MARBLEHEAD, Mass., May 13, 2011 ? /PRNewswire/ ? FinCo Management, an emerging provider of consumer finance solutions to the used automobile industry, today announced it has received a new credit facility led by Metropolitan Equity Partners as well as additional growth equity investment from current and new investors. The facility is designed to launch the Company?s new Hybrid ?BuyHerePayTHERE ? CashAdvance? product which enables dealerships to offer direct financing to deep subprime customers. With the infusion of capital, the Company expects to advance over $30 million to dealerships over the next eighteen months.
FinCo Management?s HYBRID product offers dealers without a finance department to gain instant entry to the BHPH market without any investment of cash, software or extensive training. FinCo Management?s contracts are funded in two days for 50% of the amount financed up to the auction price of the vehicle. The dealer recoups the cost of the automobile upon sale and realizes profit from future consumer payments over time.
?We recognize there remains a large number of successful dealerships who could achieve a higher level of sales if only they were able to provide direct financing to unbanked subprime and deep subprime customers with the personal cash flow to support payments on a used automobile,? said Chief Executive Officer, Toby Reiley. ?FinCo Management covers every detail and operation, with the dealer benefiting from the centralized operations. The only requirement on the dealer is to source and sell the cars to the usual customers.?
|
The Company?s centralized operation leverages third party contractors to create efficiencies while reducing cost and risk when compared to manning their own finance and compliance departments. Dealers are rewarded for originating ?smart deals? as pass-though collection costs are avoided.
?Many small and medium-sized dealerships are hampered by a lack of access to the capital markets and are unable to manage the cumbersome requirements of most third-party lenders,? said Paul Lisiak , Managing Partner of Metropolitan Equity Partners. ?We were attracted to FinCo Management based on the Company?s intelligent partnership approach which has properly aligned the interests of the dealership, FinCo Management and investors.?
The FinCo Management infrastructure has been developed by industry experts who understand the operational needs of dealerships. The Company?s offering successfully integrates third party suppliers such as Fiserv Automotive Solutions , Monetrics , Subprime Analytics , Carleton Calculations , Convenient Cards, Inc. , Heartland Payment Systems , and Authorize.net .
Bill Mahoney, previously Bridgewater Associate?s Director of Sales and Marketing, and David Kornbluth of RIK Enterprises have joined the Company?s Board of Directors that also includes Treasurer Jay Hole, and CEO Toby Reiley.
About FinCo Management
FinCo Management is licensed/approved as a retail sales finance company in 30 states, and is represented as by a network of independent sales reps. The three founders have extensive automotive and business history, including a 29 year veteran with GE Capital?s subprime automotive practice and the founder of Monetrics. For more information, visit www.fincomanagement.com or call Mike Scalise, Director of Business Development at 781-639-6000
SOURCE FinCo Management
Click here to view rest of article from original site
olivia newton john parrot pickles preakness 2011 earthquake in new zealand grocery coupons recent earthquakes
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.