RIFCO to utilize DealerTrack's Network for Online Credit Applications
RED DEER, AB, Nov. 22 /CNW/ - RIFCO Inc. (TSX.V-RFC) is pleased to announce that RIFCO's auto lending program will soon be available 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 enrollment 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 enroll 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.
The common shares of RIFCO INC. are traded on the TSX Venture Exchange under the symbol "RFC". There are 19.25 million shares (basic) outstanding and 20.93 million (fully diluted) shares.
Certain information contained in this press release, including information and statements which may contain words such as "objective", "estimates", "would", "will", "contemplates", "expects" and similar expressions and statements relating to matters that are not historical facts, are forward-looking information including, but not limited to, information as to future performance.
This forward-looking information is based on certain material factors, assumptions and analyses made by RIFCO in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform with RIFCO's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this press release is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from RIFCO's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this press release, including: adverse market and economic conditions. Additional risks may be described in RIFCO's Annual Report for the most recently completed financial year end which may be found on SEDAR at www.sedar.com. If any of the above risks or uncertainties materialize, or if the material factors, assumptions and analyses applied by RIFCO are incorrect, actual results may vary materially from those expected in the forward-looking information in this press release.
Consequently, all of the forward-looking information contained in this press release is qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by RIFCO expressed or implied by the forward-looking information in this press release will be realized or, even if substantially realized, that they will have the expected consequences to or effects on RIFCO or its business operations. RIFCO assumes no obligation, except as required by law, to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
For further information:
RIFCO INC.
Lance A. Kadatz
Vice President and Chief Financial Officer
Telephone: 1-403-314-1214 Ext 111
Fax: 1-403-314-1132
Email: [email protected]
Website: www.rifco.net
DEALERTRACK, INC.
Debbie Oberender
Director, Marketing and Communications
Telephone: 905.281.6229
Toll Free: 1.877.288.2191 ext. 6229
[email protected]
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