By Trey Latham - April 26, 2023
Whether you’re a brand-new start-up entering into the underserved BHPH market or you’ve been enjoying the excitement of the dynamic sub-prime arena for 40 years, raising capital is a necessary step.
This has become increasingly difficult. Common ways to raise money would be to sell entire loans, sell portions of loans (PIPPs), taking on investors (giving up equity/voting rights), or borrowing from a bank.
But, did you know there’s a way to increase cash on hand without:
It’s called a debenture, and it sounds like a complicated financial term that will always end up costing you somehow, like derivative or defeasance. But, debentures are fairly straight-forward and mutually beneficial for a borrower and lender when done properly and efficiently.
Debentures, of course, have drawbacks and challenges (i.e., accounting can be complex, restricts sale of the assets used as collateral, etc.), but due to their cost-effective nature and various repayment terms/options, they are a great way for dealerships and finance companies alike to borrow money. And there’s one DMS that’s been at the forefront of debenture accounting for 5+ years: Deal Pack.
With Deal Pack’s team at your disposal, anything you can dream, Deal Pack can do. Call or email to schedule a demo today.
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.
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