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Want quick cash for your Buy Here Pay Here (BHPH) loan portfolio in Arkansas? Here’s the deal: you can sell your portfolio to get up to 90% of its value, reduce risks from defaults, and free yourself from collections headaches. The key is finding the right buyer and preparing your portfolio properly.
| Buyer/Platform | Key Features | Portfolio Size Requirements |
|---|---|---|
| Debexpert | Online auctions, competitive bidding, secure file exchange | No minimum size |
| CAR Financial | Flexible programs (bulk, aged receivables, lease funding) | Varies by program |
| Westlake ALPS | Fast processing (7–10 days), long-term relationships | $250K–$20M |
| Local Buyers | Personalized service, faster evaluations | Varies |
| National Buyers | Large-scale operations, strict documentation requirements | Varies |
Selling your BHPH portfolio is all about preparation and choosing the right buyer. Keep reading for detailed insights on each option.
Debexpert is an online marketplace that specializes in helping Arkansas BHPH loan portfolio sellers connect with over 500 verified debt buyers across the country. Through competitive bidding, sellers can achieve higher portfolio values .
The platform offers a streamlined process that includes portfolio evaluation, secure transactions, and engaging qualified buyers:
Debexpert’s team evaluates each portfolio thoroughly, identifying strengths and weaknesses. Backed by data from over 700 annual sales, they craft pricing strategies that can recover up to 90% of the remaining principal .
Debexpert prioritizes safety by offering:
With a database of over 100 specialized BHPH portfolio investors , Debexpert ensures competitive bidding through its auction system, attracting the right buyers for every portfolio.
"Debexpert has been friendly to work with and provided us with numerous buyers for our portfolio. They got top dollar for our accounts and I would highly recommend using their firm", says Andy, Chief Financial Officer at Asbury Management Group, Inc. .
Debexpert offers tools and services to make the selling process smooth and efficient:
Sellers can use the platform’s real-time dashboard to monitor bids and buyer activity . This transparency helps sellers make informed decisions throughout the sale.
"The Debexpert team was extremely helpful. Carlos, Henry, and Mike made the process simple. I would HIGHLY recommend them to anyone needing their services", shares Lizette Gonzalez, Director of Operations at Approved Money Center .
Debexpert also provides standardized Purchase Sale Agreements to ensure compliance with regulations . Their team assists with file preparation and account grouping, making it easier for Arkansas dealers to attract qualified buyers and secure the best value for their portfolios.
CAR Financial Services has been purchasing BHPH loan portfolios for over 25 years, operating in 47 states . Their Account Bulk Purchase Program (BULK) is specifically tailored for Arkansas dealers who want to sell their portfolios. These programs work alongside other platforms to offer dealers customized cash flow solutions.
CAR Financial offers several specialized programs to meet dealers' needs:
Dealers working with CAR Financial benefit from a range of support services, including:
CAR Financial supports contracts with all payment intervals and works seamlessly with leading industry tools for lease servicing.
"I could generate cash flow from my receivables with a lot of companies…. But no one could match the value, service, and stability that CAR Financial has provided to my business."
- Mike, Cars Trucks and More
With their deep industry knowledge, CAR Financial's team provides insights to help dealers maximize their portfolios and use multiple programs effectively.
"CAR Financial isn't just the servicer of my portfolio...CAR provides me with an honest, professional, and experienced source of industry and local information that helps me make the best decision for my business."
- John, Schwartz Motors
Westlake Financial Services, through its Advanced Lending & Portfolio Services (ALPS) division, provides Arkansas dealers with a platform to sell their BHPH (Buy Here, Pay Here) loan portfolios. With a focus on automotive financing, ALPS has positioned itself as a key player in this market, offering dealers flexible options for portfolio sales.
ALPS has clear criteria for purchasing portfolios:
| Requirement | Details |
|---|---|
| Portfolio Size | $250,000 to $20 million |
| Loan Type | Auto loans only |
| Interest Structure | Simple-interest contracts |
| Payment Schedule | Monthly payments only |
| Minimum APR | 12 percent |
| Title Status | Must be in the dealer's name or transferable |
These criteria ensure that only well-structured portfolios are considered, aligning with the expectations of specialized buyers.
ALPS aims to provide dealers with fast access to capital, typically closing transactions within 7–10 business days. Alok Desai, Portfolio Manager, highlights this efficiency:
"With quick processing and funding times, most ALPS transactions close within seven to 10 business days."
Westlake ALPS prioritizes forming lasting partnerships with dealers instead of focusing on one-time transactions. Paul Kerwin, Westlake's Chief Financial Officer, elaborates on this approach:
"ALPS is already a 'relationship' business. We want to build long-term relationships with dealers looking for additional capital. This could allow for better pricing over time and quicker funding times as we become familiar with their portfolio. We are not looking to replace a dealer's buy-here, pay-here business, but rather help facilitate that business by providing cash flow."
The program gives dealers multiple ways to structure their portfolio sales:
Westlake's network spans 50,000 auto and motorcycle dealers across the country . Todd Laruffa, ALPS Assistant Vice President, highlights the growing demand:
"A lot of auto finance companies out there now, especially as it pertains to buy-here, pay-here platforms, are looking to sell their portfolio, which is a common method for BHPH to generate capital."
Arkansas dealers interested in working with Westlake ALPS can reach out via email at ALPS@westlakefinancial.com .
Local finance institutions in Arkansas play a key role in boosting returns on BHPH (Buy Here Pay Here) portfolios. These companies offer personalized service and a close understanding of the local market, making them an attractive option alongside national platforms.
One standout in the Little Rock area is Credit Acceptance. Austin Vann, General Sales Manager at Steve Landers Auto in Little Rock, shares:
"We prefer to use Credit Acceptance over other subprime lenders because they service our customers better and get us our money faster. We have deals funded within the first 24 hours of contracting."
This highlights the unique benefits that local buyers can bring to the table.
Local buyers offer several benefits that can make a big difference for dealers:
| Benefit | Description |
|---|---|
| Market Understanding | Familiarity with local economic trends and customer needs |
| Faster Processing | Quick site visits and speedy portfolio evaluations |
| Community Relations | Careful collection practices that help protect dealer reputations |
| Flexible Terms | Tailored purchase agreements suited to the local market |
| Ongoing Support | Direct access to decision-makers for smoother portfolio management |
Right now, demand for BHPH portfolios is strong. Local buyers are offering up to 90% of the total remaining principal balance . This competitive environment is a win for Arkansas dealers looking to sell their portfolios while maintaining good standing in their communities.
To work with these buyers, you'll need to have the following documents ready:
Local buyers often complete evaluations faster than national firms. If your submission is well-organized, you could receive a response the same day.
National portfolio buyers bring plenty of benefits to Arkansas dealers, thanks to their well-established infrastructure and strong purchasing power. These major players are deeply involved in the Buy Here Pay Here (BHPH) market and are always on the lookout for quality portfolios. They complement local and online platforms by using their extensive resources to streamline the process.
The current market heavily favors sellers, as the demand for BHPH portfolios exceeds the available supply. This trend is fueled by the growth of the sector, with BHPH loans making up about 6% of all auto loans nationwide .
National buyers use strict criteria to evaluate portfolios:
| Criteria | Typical Requirements |
|---|---|
| Documentation | Electronically stored loan records preferred |
| Performance | Clear and consistent payment history |
| Geographic Distribution | Portfolios with accounts spread across different regions |
National buyers follow a structured approach to ensure smooth and efficient transactions:
National buyers simplify the selling process and connect dealers with a broader pool of investors. For Arkansas dealers, this means competitive pricing and more options for turning portfolios into cash.
Dealers looking to work with national buyers should prepare their portfolios carefully. Organizing accounts by geography, product type, and delinquency stage can help buyers evaluate risk and set accurate prices . This preparation can make a big difference in maximizing portfolio value.
Getting your BHPH loan portfolio ready for sale requires careful planning and organization. Following these steps will help align your portfolio with buyer expectations.
Once you've chosen a buyer, having the right documents in order is essential for a smooth transaction. Here's what you'll need:
| Document Type | Purpose | Impact on Sale |
|---|---|---|
| Masked File (Excel) | Provides a detailed account list with sensitive data hidden | Speeds up buyer evaluation |
| Original Loan Contracts | Confirms ownership of the loans | Can lead to better pricing when stored electronically |
| Collection History | Tracks payments and contact efforts | Shows how well the portfolio performs |
| Purchase Sales Agreement | Details transaction terms and obligations | Ensures smooth closing |
| Seller's Questionnaire | Summarizes portfolio details and metrics | Helps buyers assess the portfolio |
To make your portfolio easier to evaluate, group loans based on:
It's critical to demonstrate compliance with regulations. Ensure your records clearly show adherence to laws like the Fair Credit Reporting Act, Equal Credit Opportunity Act, and Truth in Lending Act .
Switching from paper to electronic records can make a big difference. Here’s how:
Once your documentation and organization are in place, take additional steps to enhance your portfolio's appeal:
Additionally, conducting regular third-party audits can validate the quality and compliance of your portfolio, making it more attractive to buyers .
Selling your BHPH loan portfolio in Arkansas requires working with experienced buyers and preparing your portfolio thoroughly. A well-organized portfolio can sell for up to 90% of its value .
When deciding where and how to sell, keep these important factors in mind:
| Factor | Impact on Sale |
|---|---|
| Digital Documentation | Having documents stored electronically can make your portfolio more appealing by offering instant access to buyers. |
| Portfolio Size | Helps determine whether to sell the entire portfolio or divide it into smaller, targeted groups. |
| Buyer Expertise | Buyers familiar with BHPH loans often close deals more efficiently. |
| Geographic Focus | Local buyers may provide better terms for portfolios based in Arkansas. |
Both online platforms and local finance companies offer various options tailored to your needs. These factors align with the advice of industry professionals.
"The fatal mistake that new car dealers entering the bhph market make is not understanding the difference between selling cars and managing a subprime finance portfolio" .
By using digital records and specialized platforms, Arkansas dealers can enhance the value of their portfolios. Combining detailed documentation, strategic organization, and partnerships with knowledgeable buyers sets the stage for successful sales.
Selling through trusted channels allows Arkansas dealers to improve cash flow while ensuring their portfolios are handled by buyers who understand the unique demands of the BHPH market.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
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