Lines of Credit

Spartan Financial provides customized revolving lines of credit. Each facility is secured by retail installment contracts originated by qualified buy here pay here dealers, indirect lenders and other loan originators.

Our lending parameters include

  • Target loan size — $1MM - $30MM;
  • Term — Up to 24 months;
  • Advance Rate — 40% - 70% of principlal amount financed;
  • Interest Rate — 30-day LIBOR plus appropriate credit risk premium;
  • Collateral — Perfected security interest in financed receivables;
  • Funding — Up to 2 per week;
  • Portfolio Measurements — Cash Collection Ratio, Delinquency Ratio, Delayed Payment Ratio, Loss to Liquidation Ratio, Static Pool Loss%;
  • Financial Covenants — Minimum Tangible Net Worth, Interest Coverage, Debt/Equity;

Bulk Acquisitions

Spartan Financial targets bulk acquisitions from Buy Here Pay Here dealers, indirect auto finance lenders, financial institutions and credit unions.

Portfolios are purchased both on a re-occurring and one-off transactional basis.

  • Spartan develops relationships with dealers and provides cash for auto receivables contracts on a monthly or quarterly basis.
  • Entire portfolio purchases including delinquent and BK accounts designed for a specific liquidity event such as opening a new lot or retirement.
  • Spartan purchases portfolios on a servicing released or retained basis.
  • Smooth transfer of servicing to keep customers happy.

General parameters include

  • Target portfolio size — $250k-$20MM;
  • Seasoning — Two to three-months;
  • Recourse or non-recourse program
  • Underwriting characteristics — Payment-to-income, loan-to-value, cash down, term, payment amount, stable employment and residency status, collateral (make, year, mileage); and;
  • Customer interviews

Spartan will deliver on our commitment. For a free quote on your portfolio please contact Russell Corey – or (864) 590-2587.