Thursday, December 19, 2013

Marsh markets DIY finance to dealers





Marsh Finance has begun a campaign marketing itself as a finance partner to dealerships and inviting them to develop their own subprime lending product.
Aimed at car supermarkets and dealer networks, the Rochdale-based finance provider and portfolio manager said it can help dealers turn "hundreds of pounds of finance commission into thousands of pounds of finance interest".
Particularly, Marsh's campaign emphasises the growth of subprime lending, both the increasing number of people in the non-prime demographic and the use of brokers by dealers to expand their panel of non-prime lenders.
Dealers taking up Marsh's offer would set their own scorecard rates and underwriting needs and share the risk with the finance provider. On such a model, Marsh claims it has a net return of 23%, after commission, on finance. At present, its management book stands at £186m of receivables, with an arrears rate of 0.6%.
The framework has most notably been employed of late with the launch of Stoneacre FS the subprime funding arm of the Stoneacre dealer network, headed by Steve Reynolds.

DATED: 19.12.2013

FEED: MF





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