| Advance | Loss Reserve Index |
WFI Potential Earnings |
Reserve Adjustment |
Recourse | Notes |
|---|---|---|---|---|---|
| $1.00 | 85% | 15% of principal payments collected |
85% | N/A | Dealer keeps 85% of principal payments; you set customer credit criteria |
This program gives you the opportunity to basically carry your own contracts for a fixed cost of 15% of the principal payments collected. Western Funding sends out the coupon books, collects the payments and provides all of the accounting services. In turn, Western Funding will adjust the Loss Reserve Index monthly to 85% of the total outstanding receivables; you receive a check for 85% of the principal payments collected. We handle these accounts just like our other programs; we send delinquent notices, report the account status monthly to the credit bureaus and provide full service for you and the customer. You benefit both from our experience and operation and by being able to finance those very questionable credit risks.
| Purchase Example | |
|---|---|
| Amount Financed | $ 5,000.00 |
| APR (0 to maximum State rate) | 21.00% |
| Paymemt Amount | $ 188.50 |
| Term | 36 Months |
| Total of Payments (including finance charge) |
$ 6,786.00 |
| Advance | $ 1.00 |
| Loss Reserve Index | $ 5,767.10 |
| WFI Potential Earnings | $ 1,017.90 |
| YOUR INCOME* | $ 5,768.10 |
| * contingent upon each customer paying every payment | |