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By Deal Pack - January 18, 2013
In the BHPH Industry, you may have heard the terms, “Static Pool” and “Static Pool Analysis” thrown around. Now maybe you understand static pool’s, and know exactly how to analyze them. Maybe you have heard of static pools and have even seen a static pool report, but it still just doesn’t seem to make sense. Lastly, maybe you have no idea what I’m talking about and have never heard of such an analysis before. I’d like to shed some light on this type of portfolio analysis and highlight the value of static pools and show you how Deal Pack can help you in analyzing them!
Let us begin with the first term, “Static Pool”. What does it mean? A static pool in the BHPH industry is a stationary (static) group (pool) of loans. The standard pool used in the industry is individual months. So we have a stationary group of loans sorted by the individual month that the loan was created.
Before a bank will provide capital to your dealership, they will most likely need to have a look at your portfolio to analyze the amount and frequency of losses caused by repossessions and charge-offs. This is where the “Static Pool Analysis” comes into play. This analysis consists of looking at each month of a static pool of loans, to see how many accounts were charged-off or repossessed (by month) and what the total dollar amount of losses caused by those charge-off/ repossessions (by month). This analysis can be very valuable for negotiating contract terms with new customers, as well as when to concentrate more resources or effort to collections.
Deal Pack is a DMS that can accurately track this information for you! Use Deal Packs built in “Static Pool Analysis” report, which will give you all of the information you need with the click of a button. Use this report to get a static pool analysis on repossessions and charge-offs for the last 48 months. It will display the origination month and year for a set pool of loans on the left hand side of the report. Scrolling to the right of the report you will see, sorted by number of months since inception date, the number of loans charged off and the accounts receivable balance at time of the repossession/ charge-off.
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Advanced Business Computers of America (ABCoA) develops and supports end-to-end software solutions for the subprime finance industry. Since 1983,
we have helped automotive dealerships and finance companies eliminate duplication, remain compliant, and achieve success with dependable, all-in-one software and white glove service and support.
Deal Pack is a complete, all-in-one software ecosystem customizable to your exact needs and scalable to your exact size - helping improve your operations, grow your business,
and solve the challenges you face. Whether you are a finance or sales company, multi-entity or publicly traded company handling BHPH or LHPH, operating or capital leases,
internal or external floor-planning, retail, rentals, consumer loans, origination, or seasoned paper, Deal Pack is the dependable software for mission critical operations.
Deal Pack handles all of your business needs transparently – providing you measurable improvements and complete financial control, saving you time,
increasing your bottom line, and allowing you the freedom to focus on your daily operations. Deal Pack is relied upon by thousands of customers across
all 50 states in the United States and six countries around the world. Customers properly using Deal Pack have never lost an IRS audit.
To learn more about ABCoA, visit www.abcoa.com.