AFS is proud to announce that it recently secured increased funding for its auto receivables program from Westpac Institutional Bank (WIB).
AFS funds its receivables via an Australian market standard securitisation Master Trust structure called the AFS AUTO-1 Trust, which AFS owns and also acts as Seller, Servicer, Custodian and Trust Manager.
Due to the resilience and strength of the new and used car sales, the company has experienced strong growth in receivables over the past 12 months. Executive Director Brad Dale says, "The increase in senior debt funding to $50M places us in a strong position to continue to capitalise on robust credit demand for vehicles and leisure goods. We believe that vehicle sales will remain strong despite the recent announcements by local manufacturers that production of locally made cars will cease in the near future."
AFS plans to use the additional funding to provide competitive finance to its customers for new cars and leisure goods, and those customers with superior credit ratings. "We see an opportunity to bring to the market innovative products that provide an alternative to traditional bank lending and where customers demand personalised service rather than a self-service model" explains Dale.
With the recent acquisition by Westpac of the vehicle finance arm of Lloyd's of London's, Capital Finance Australia Limited, and the fact that GE Money withdrew its Motor Loan product from brokers that service the motor dealer market as at 1st March 2014, AFS may have slotted itself into pole position to take advantage of this recent spate of rationalisation. With rates starting as low as 7.95% pa (comparison rate 9.21% pa), the growth in the company's auto receivables is sure to keep motoring along!