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We keep paying you.With a Credit Accepting Company for your deals, |
2. It's My Money and, I Want It Now!
3. A piece of Future Collections.
4. Is the UP TO 80% the BEST PAYOUT ?
5. Is the amount paid 80 or UP TO 80?
6. When will the money be IN MY BANK?
7. TIME LIMIT to closed the pool?
8. How many DEALS TO CLOSE a pool?
9. What happens if I don't close a pool?
10. Business closed. Will I still collect?
Unlike in-house financing or cash deal, funding companies offer a revenue share on the interest paid over the life of the finance contract. Usually the shared revenue interest payments are grouped together with other deals called pools.
Financial companies compete for the car loan. Select funding companies offer not only the selling price of the car, they add a portion of the expected revenue brought in from the interest paid on the loan. The amounts are based on their evaluation of the loan risk. This money is available to the dealer soon after the paperwork has been signed.
Pools are the way a financial company partners with a car dealer to split the revenue of interest income to be collected over the life of the loan.
The industry standard was set long ago by one of the nations largest credit company 20% to the funding company and 80% to the auto dealer.
From that time on, most pools are 100 deals paying UP TO 80% on their revenue share pool.
Others go the extra mile to maximise dealer profit. FULL 81% to the dealer and require only 50 deals per pool.
* Selling only 50 cars instead of waiting to close the deals on 100 cars, and cash in on the payday.
* Think about it, Shopping around to find the best pool can put money in your bank twice as fast and with a larger payday. 1% of $100,000.00 pool and payday selling 1/2 the cars. Shopping around can pay off
IF the lender you choose has a payout of UP TO anything, it could be 1%, 22%, 51%, 80%.
ANYTHING BETWEEN 00% AND 80%
Yes 80% is the industry 'Gold Standard' But NOT the only option. Check for other, more profitable options.
There are options that payout a FULL 81%.
Remember: NOT ALL POOLS ARE CREATED EQUAL!!!
Pools generally payout in 3 installments.
1. NetCheck - This is the large up-front payment that often equals or exceeds the amount a dealer has sold the car for.
* The excess money is part of the expected interest income to be collected over the life of the loan.
2. EDC Payment - Express Dealer Check (No its not the Electric Daisy Concert)
* Usually paid near the half way mark to filling a pool. The amount paid is based on the ACTUAL funds (interest) collected above the amount paid in the original NetCheck.
3. Pool Closed - Most pools are 100 deals paying up to 80% on their revenue share pool. Others require only 50 deals and pay 81%.
* Think about it, Shopping around to find the best pool can put money in your bank twice as fast and with a larger payday. 1% of $100,000.00 pool and payday selling 1/2 the cars. Shopping around can pay off
Excellent question! Every funding company has their own pools and create their own rules. Always find out about any possible time limit to close the pool. In some pools, if the pool doesn't close in time the funding company will keep 100% of the intrest revenue. *That alone is a really good reason to look for the 50 deals pools.
Every funding company has their own pools and rules. Most follow the industry standard of 100, but there are funding companies that only require 50 close out for pay day.
Life happens! Occasionally for any number of reasons you may not close a pool, if the pool doesn't close the funding company may keep 100% of the intrest revenue.
*That alone is a really good reason to look for the 50 deals pools. Smaller pools are twice as easy to close and collect your money.
CLOSED! Occasionally for reasons out of your control. Every funding company has their own pools and rules. While one may decide they only pay to dealers actively selling cars and making them more money. Another will keep their promise and pays the money to the to the dealer on schedule. Its Your Money!