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Consumer Finance Programs
Grassroots Financing offers a wide range of consumer finance programs covering many industries. Unlike traditional bank programs, our tailored consumer finance programs offer flexibility, working for those with sub-prime credit as well as those with good credit.
Consumer finance programs can be broken down into 3 categories of credit risk; Prime, Sub-prime, and Tertiary (3rd look). Grassroots tailors lending programs covering all three categories.
PRIMARY - SUBPRIME - TERTIARY
PRIMARY 650+
Primary consumer finance programs are designed to approve customers with average to good credit who typically have credit scores in the mid-600’s or above.
SUBPRIME 580-650
Subprime, or secondary consumer finance programs, are designed to approve marginal credit customers with credit scores between 580-650.
TERTIARY Below 580
Tertiary consumer finance programs usually sit behind primary and subprime programs and are designed to approve customers with credit scores below 600.
PRIMARY
Consumer Finance Programs
A primary consumer finance program is defined as a financing option that is offered to the customer first (first look) before other finance programs options are presented. Primary programs offer the most attractive loan terms for consumers and typically have lower dealer fees for merchants but are stringent on credit, only approving customers with good to- excellent credit. Primary consumer finance programs are an important piece of an overall customer financing program but can only help a portion of the customer base and should be used in conjunction with sub-prime and tertiary programs to maximize sales.
SUBPRIME
Consumer Finance Programs
One of Grassroots and partner’s biggest strengths is its ability to build, market, and grow effective consumer finance programs for the sub-prime credit market. A sub-prime consumer finance program, also known as 2nd look financing, can be defined as a program that sits behind a primary or 1st look program and is designed to approve those applications that were denied by the primary lender.
In today’s economy, businesses are finding that traditional primary finance programs do not meet the needs of the majority of their customers. A good sub-prime consumer finance program can increase revenue dramatically and allow businesses the opportunity to make the most out of their marketing efforts and dollars spent.
When a business chooses to implement a 2nd look financing program, it is extremely important to seek the help of a team of experienced and qualified professionals like Grassroots because of the vast differences in program structure. Grassroots will help you choose the program that best suits your business model.
TERTIARY
Consumer Finance Programs
Even with the use of a Sub-prime or 2nd look program, not all applicants can be approved. Tertiary consumer finance programs can be defined as financing options offered last in line and usually sit behind a primary and 2nd look program. Tertiary programs are designed to approve applicants with challenging credit issues like delinquencies, charge offs, and judgments.
Tertiary consumer finance programs aren’t for every business. They almost always carry some sort of risk on the merchant’s part. However, if structured properly, the risk is calculated and minimal.
Tertiary programs allow for far more customization than primary and secondary programs and in some cases can allow for 100% credit acceptance.
Industry-Specific Programs
Consumer Finance Programs
Grassroots partners are the industry experts when it comes to building, implementing, and managing sales-driven consumer finance programs. Our partners have built hundreds of different primary, secondary, and tertiary programs in a wide range of industries over the last 40 plus years.
Both dealers and manufacturers alike have looked to our network for their consumer finance needs. Below are pictures of industries in which we currently have active consumer finance programs in…and many more!
