BALTIMORE (WJZ) — It’s the largest online bank theft yet, and the FBI says a Maryland man is one of the masterminds behind it all. RFC, a finance company, is created with capital contributions from DEALER to purchase notes receivable from DEALER’S used car lot. An alternative treatment is that no deduction is allowed to the dealership until the cash is actually received and recognized as income by the finance company. This economic fact is recognized both by the interest rates charged by the dealer or finance company and the reserves that independent finance companies generally maintain.
This number should reflect the finance contract discount deductions or losses claimed by the dealer on contracts discounted, assigned, or sold to the RFC. If the RFC reported any income on the finance contract principal collections, this amount is subtracted out here. Indeed, at the heart of every successful finance company is an amazing collections team and effective processes that yield results.
In addition to boarding loans, understanding risk, making calculations, taking payments, and all the other essentials of finance company operations, you also need a system that can help you effectively manage your receivables and minimize delinquencies. Efficiency can make all the difference when it comes to running a successful and profitable finance company.
Furthermore, we also give you access to custom reporting, accounting, repo processing, and additional functionality, giving you a comprehensive technology solution for all of your finance company operations. From boarding loans, accepting / collecting payments, processing repossessions, and more, our software makes it easy to manage your finance company, providing a one-stop shop for every facet of your business. The platform in which your finance company software operates can, in large part, determine the capabilities and effectiveness of the system. This is especially true in a finance company, where unchecked delinquencies can have a huge impact on cash flow and profits.
While many finance company software systems on the market include some sort of collections functionality, the best solutions offer multiple automation options and the ability to track activities. AutoStar’s clients can choose from an array of products and services that are customizable for companies of all sizes. In addition to the main location license, any subsequent location other than the main office must be filed as a SFB: Sales Finance Company Branch by way of online services. A sales finance company is required to file an annual report with the Division of Banking.