BHPH Dealers Face Heightened Scrutiny From Funders
HOUSTON — Rates are low, but capital is scarce.
To secure the limited funds, buy-here, pay-here dealers will have to improve operational efficiency, develop more detailed loan-performance reports, and forge stronger bonds with their lenders in order to survive in 2010.
“We all know that capital is the gasoline that goes in the tank in BHPH,” said Ken Shilson, president of Shilson, Goldberg, Cheung & Associates LLP, a Houston-based CPA firm specializing in the BHPH industry. “We have to utilize it more effectively than we have in the past.”
Shilson and Rick Potter, president of dealer funding provider CAR Financial Services Inc., outlined the steps BHPH dealers should take to secure the hard-to-come-by capital. Their advice came during a session at the 2009 Underwriting & Collections Conference for the National Alliance of Buy-Here, Pay-Here Dealers, an organization Shilson founded in 1999.
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