Many BHPH dealerships have already jumped at the chance to open a related finance company (RFC). There are multiple economic benefits, but one of the things companies tend to look over is making sure the finance company is set up and used properly. It should not be viewed as simply a collections company for your sales company.

These are requirements you should meet when starting an RFC:

• Your RFC should be a separate legal entity.
• It should meet all licensing requirements.
• Needs to be adequately capitalized.
• Must have its own employees.
• It should have a separate address and telephone number from your sales company.
• The company must maintain a separate set of books and records.
• Must comply with all title, lien, and recordation rules.
• Notify customers of the purchase of their notes.
• Both the RFC and the dealership should have a purchase contract for receivables.

Taking on the new venture of opening an RFC is no easy feat, but there are tools available to make the transition much easier for you, such as an all-in-one dealer management system like Deal Pack Pro.

With Deal Pack Pro, your sales company can easily sell loans at discounted rates to your RFC and transfer them from one company to another with a click of a button. With the strict requirements of the IRS for exchanging funds between the two companies, the system tracks the payables and amounts due from one side to the other and does most of the work for you. Deal Pack Pro can also run Consolidated Financials if you are wanting to see performance of both companies as one statement.

For additional information on Deal Pack Pro or if you would like to request a demo, please contact Customer Support at (800) 526-5832 or email us at support@abcoa.com.