Wednesday, 29 June 2011

Carfinco - Services $150 Million Loan Portfolio

Carfinco Income Fund TSX:CFN.UN
Units outstanding: 23.97 million
Units fully diluted: 24.6 million


Just as Carfinco investors got comfortable with a planned yearly growth of the Fund at around 20%, management announced today that it will service a $150 million loan portfolio consisting of both prime and non-prime auto loans owned by a US Equity Fund.

The large new portfolio will add significant revenue to Carfinco with none of the normal risk attached to the loans.

Carfinco has been working to get into risk based pricing meaning that it wouldn't just lend to customers with a "D" credit score through its dealer network and the new portfolio spanning nationally will help assess the process as it covers customers across the credit spectrum.

In conjunction with servicing this portfolio, Carfinco will be opening a service centre in Quebec. "Having a centre in Quebec, working in conjunction with our head office location in Edmonton will not only assist in servicing this third party portfolio but will also increase the effectiveness of Carfinco administering its own portfolio across Canada," added Mr. Graf .

See full news release here...