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".
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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 Financial Services, the subprime funding arm of the Stoneacre dealer network, headed by Steve Reynolds.
richard.brown@timetric.com
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