Focus Management Group

Banking Industry Experience

Sub Prime Loan Provider

Company:

Sub Prime Loan Provider

Situation:

The Company provided sub prime lending to consumers in several states, through affiliate owned car lots. It managed the loan accounts, including collecting problem loans. The Company’s line of credit oustandings were continuing to increase while gross loans, net revenues and EBITDA were decreasing.

Focus Scope:

Focus was asked to prepare weekly cash flow modeling and annual financial statement modeling support to the Company.
• Focus also was asked to more thoroughly forecast the cash needs of the Company going forward as it began to grow its loan portfolio again.
• Focus was asked to prepare an analysis of performance by location, loan type, etc.

Tasks Performed:

  • Focus worked with the Company to implement a daily cash sheet, weekly cash flow and borrowing base forecast, and monthly and annual financial statement forecasts.
  • Focus provided resources to the Company to better understand the funding requirements to grow the Company based on various loss performance levels, payment schedules, etc. for the new and existing loan portfolio.

Results:

  • The Company implemented the daily and weekly cash flow reporting and was able to transition to internal weekly lender reporting.
  • The Company negotiated a debt paydown strategy with the incumbent lender and pursued a new lending relationship utilizing the new financial management tools provided.
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