CPS Enters $50 Million Credit Facility
Consumer Portfolio Services Inc., a subprime financing source, entered into a $50 million two-year credit facility on Sept. 25 with Fortress Credit Corp., an affiliate of Fortress Investment Group.
IRVINE, Calif. — Consumer Portfolio Services Inc., a subprime financing source, entered into a $50 million two-year credit facility on Sept. 25 with Fortress Credit Corp., an affiliate of Fortress Investment Group.
Loans under the facility will be secured by automobile receivables that CPS now holds or will purchase from dealers.
"We are very pleased with this new facility as it will allow us to begin growing our new contract originations again," said CEO Charles E. Bradley Jr. "During the credit crisis over the last year and with the lack of other credit facilities, we have focused on preserving liquidity. As a result, so far this year we have purchased only nominal amounts of new contracts. With this financing we will be able to take advantage of what we believe is a tremendous market opportunity, as many former competitors have exited the industry."
Consumer Portfolio Services Inc. is a specialty finance company which purchases and services new- and used-retail automobile contracts originated primarily by franchised automobile dealerships. The company also services independent dealers in the United States marketplace, as it serves as an alternative financing source for subprime customers.
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