InvestmentPitch.com Video News Alert for RIFCO (RFC-TSX.v) - RIFCO to utilize DealerTrack's Network for Online Credit Applications
(Thomson Reuters ONE) -
Vancouver, British Columbia, November 23, 2010 InvestmentPitch.com'svideo news
alert discusses RIFCO (RFC - TSX.v) and their roll out of their auto lending
program to select Canadian dealers through the national online credit
application network, operated by DealerTrack Canada, Inc.
RIFCO will have potential access to over 5,000 enrolled automotive dealers
participating in the DealerTrack loan origination platform, the largest in
Canada. RIFCO is optimistic that as access to reasonably priced capital is
expected to continue to improve for the Company, now is the opportune time to
join the DealerTrack Network.
"RIFCO's participation in the DealerTrack Network has the potential to be
transformational for RIFCO." says Bill Graham, President and CEO of RIFCO. "This
enhancement to RIFCO's loan origination platform increases the Company's
franchise value."
"By offering their unique automotive financing services through the DealerTrack
Canada network, RIFCO will be able to help streamline the consumer loan process
for its Canadian dealers," said Michael Collins, Vice
President and General Manager of DealerTrack Canada. "This agreement with RIFCO
underscores
DealerTrack's commitment to providing dealers with a full spectrum of options
that help simplify the financing
process for both the dealer and consumer."
Transformational
From a dealer's perspective, DealerTrack network will put RIFCO on comparable
footing with other, larger auto lenders. Some industry observers have cited the
non-traditional auto lending marketplace in Canada at a potential $4 billion per
year in new loans. RIFCO expects this agreement with DealerTrack to help
increase its market share in this segment of the market. This means that, in
terms of dealer reach and loan originations growth potential, the ceiling on
RIFCO's size and ultimate potential has been raised.
RIFCO is also looking forward to using certain DealerTrack network tools and
features that can facilitate
segmented and custom lending programs for groups of dealers. RIFCO is also
investigating origination
opportunities for other financial institutions. These opportunities would not
conflict with RIFCO's current non-traditional auto lending and may be assisted
by the DealerTrack network.
Incremental
Many of RIFCO's Dealer partners have requested RIFCO's presence on the
DealerTrack network. RIFCO's
participation in Canada's largest online portal will serve to cement
relationships with existing partner dealers and will increase opportunities with
potential new RIFCO dealers.
RIFCO's dealers have advised the Company that RIFCO's participation in the
DealerTrack portal, alongside
other larger industry lenders, will help in increase loan applications and
increase loan originations for RIFCO. In order to accommodate the expected
increase in loan applications and funded loans, RIFCO has added internal
capacity to its credit, sales, and loan funding departments. The Company is
committed to maintaining superior credit performance and closing ratios.
The immediate vision of RIFCO has been to appropriately grow to the point of
originating $100 million per year in new loans. The Company has stated that its
aspirations for the coming years range from 50% to 75% new loan growth. The
Company has also disclosed its fiscal 2011 objective at $50M in new loans for
the year ending March 2011. While access to appropriately priced capital remains
a key limiter on RIFCO's ultimate growth rate, participation in the DealerTrack
network is an important Company initiative toward reaching its potential.
Consistent with Current Strategy
RIFCO has chosen the DealerTrack solution in order to further improve its unique
relationships with the current dealer base.
The Company's competitive positioning and culture within the auto industry
remains to be the most
entrepreneurial, most service based, and fastest growing non-traditional auto
lender in Canada. RIFCO has high growth aspirations and believes that its
success continues to rest on having exceptional relationships with exceptional
dealers. Significant resources are dedicated to pursuing the best lender-dealer
relationships in the industry.
RIFCO remains committed to its core group of dealers that share our "win-win"
paradigm. New dealer
enrolment will only be sought with likeminded dealers. It is expected that the
number of dealership requests for RIFCO financing will continue to exceed the
internal rate that the Company can professionally enrol and service these new
relationships. RIFCO will continue to maintain a priority on enrolling those
dealers that share our vision for growing a profitable partnership together.
RIFCO and DealerTrack are actively working on an integration and development
plan. It is expected that RIFCO enrolled dealers will be able to begin utilizing
DealerTrack to source RIFCO financing for their automotive customers by early
2011.
About RIFCO Inc.
RIFCO is one of Canada's fastest-growing automotive finance companies. Non-
traditional auto loans are
indirectly originated through a growing network of selected new and used vehicle
dealers operating in all
provinces except Saskatchewan and Quebec.
RIFCO has 19.25 million shares (basic) outstanding and 20.93 million (fully
diluted) shares.
CONTACT:
RIFCO INC.
Lance A. Kadatz
Vice President and Chief Financial Officer
Telephone: 1-403-314-1214 Ext 111
kadatz(at)rifco.net
Website:www.rifco.net
DEALERTRACK, INC.
Debbie Oberender
Director, Marketing and Communications
Telephone: 905.281.6229
debbie.oberender(at)dealertrack.com
InvestmentPitch.com
Barry Morgan, CFO
Telephone 604-684-5524
bmorgan(at)investmentpitch.com
[HUG#1465014]
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 24.11.2010 - 02:33 Uhr
Sprache: Deutsch
News-ID 49051
Anzahl Zeichen: 6989
contact information:
Kategorie:
Business News
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