Auto Loan Company Business Plan and SWOT Analysis

Auto Loan Company Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Auto Loan Company Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Auto Loan Company business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Cars are expensive purchases and as such auto loan companies exist in order to provide the necessary capital in order to purchase cars. As such, these businesses are relatively immune from negative changes in the economy. These businesses generate extremely high gross margins from the ongoing interest that is paid for vehicle loan as well as closing fees that can be acquired at the time the vehicle is purchased. Typically, most auto loan companies usually start their operations with the capital base ranging anywhere from $2 million to $10 million depending on the number of loans that will be immediately issued at the onset of operations. Of course, this number may be substantially higher if there are third-party institutional buyers standing by to purchase the close automotive loans. This is one of the additional ways that these companies generate significant revenues via the sale of seasoned auto loans. The barriers to entry for this type of business are very high. This is due to the fact that there must be a number of regulations that must be dealt with in addition to having the appropriate amount of capital on hand in order to issue automotive loans.

Most investors are happy to provide a significant amount of capital to automotive loan companies given the high gross margins generated on a monthly basis. The economically secure nature of these revenues also ensures that there is a strong return on investment coupled with having a significant collateral base. As with any business that is looking to raise capital a business plan that contains a three-year to profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be developed. Additionally, within the business plan – the automotive loan company credit procedures, protocols, and disbursement manual should be included as well. Most funding sources are going to want to see what collateral and credit standards will be used during the automotive lending process. Beyond this information, a full analysis regarding graphics, median household income, median family income, population density, population size, and competitive information should also be included. As many people now use the Internet to acquire auto loans it is imperative that this demographic analysis is extremely broad so that a very large number of potential borrowers can be targeted via the company’s operations.

After the business plan is developed is time to establish the auto loan company marketing plan. This is one of the most complex aspects of the business planning process given that there are thousands of specialty finance companies, banks, and private funding sources that provide auto loans to borrowers. Again, the high gross margins and strong collateral of these debt instruments has driven a significant amount of competition into the industry. One of the foremost aspects of the marketing plan should focus on online marketing. This includes having a proprietary website that allows users to fill out a lending application very quickly. It is important that this website have the proper functionality in place so that the credit check can be immediately completed once a borrower submit their application for an auto loan. One of the other ways that these businesses draw borrowers is through the use of social media. These days it is very important to have an expansive presence on social media platforms such as FaceBook, Twitter, Google+, and others in order to increase the visibility of the auto loan company brand name. This is going to be one of the primary ways that these companies need to continue to do their operations moving forward.

Frequently developed is the auto loan company SWOT analysis. This analysis focuses on the strengths, weaknesses, opportunities, and threats that are commonly found among these companies. As it relates the strengths, and auto loan company is able to put juice highly recurring streams of revenue from interest. Additionally, these companies can produce secondary income from close closing fees as well as the sale of seasoned loans to institutional buyers. For weaknesses, auto loan companies have a significant number of regulations as it relates to lending that they need to adhere to on a day-to-day basis. Also, there is a significant amount of competition within this industry. For opportunities, most auto loan companies expand their operations by acquiring additional rounds of capital that allow them to increase the number of loans that go through their pipeline. Pertaining to threats, there are no pieces of legislation that would impact the way that an auto loan company conducts business at this time. However, there may be changes in regulations as political shifts in the United States occur. It is important that appropriate legal counsel is retained in order to ensure that the auto loan company complies with the law at all times.