Tuesday, Oct. 03, 2006, 08:00 PM UPDATED 11:59 AMBy Nick Zulovich
NEWPORT BEACH, Calif. -- Several industry veterans recently launched Flex Fund Financial Services to provide used-inventory floor-planning services for dealers and salvage buyers.
Discussing the new company's services with SubPrime Auto Finance News, Cliff James, Flex Fund's chief executive officer and board member, explained, "Flex Fund will offer 'risk-adjusted' pricing with credit tiers A, B and C. A strong credit history will help ensure that a dealer will get approved for the largest possible amount of financing with the most affordable fees. However, our unique pricing structure will allow us to offer our products and services to dealers with less than favorable credit histories.
"Our goal is to implement proven technology and innovative processes to better serve dealers, salvage buyers and channel partners," he continued. "Unburdened by legacy systems or cultural inertia, Flex Fund will provide a flexible, easy-to-use range of services for virtually all segments of the auto remarketing industry."
Flex Fund has its headquarters in Orange County, Calif., with satellite operations in Minneapolis, Minn. Financing will be provided directly to dealers via the Internet, as well as in person through the company's developing network of affiliated whole-car and salvage auctions throughout the country, James noted.
"Thanks to our technology-driven systems, the financing of dealers' purchases will be quick and responsive. The incentive we provide is centered on our range of customer-centric services, such as trade-in financing, salvage financing, transportation cost financing, risk-adjusted pricing and more," James said.
"We start with a customer need/market opportunity and reverse engineer the processes, allowing us to earn acceptable risk-adjusted returns while solving customer problems," he continued. "As simple as that sounds, it's not typically found in the auto remarketing industry."
He went on to explain that for salvage dismantlers, selling more parts from inventory versus brokering parts allows these professionals to earn better margins, pointing out that the company is working to offer assistance for this.
"Providing trade-in financing for floor-planning transport costs allows dealers to better deploy precious working capital in their businesses. We're acting on that. These are just two examples of how Flex Fund takes a risk-neutral approach to satisfying our customers' genuine business needs," James highlighted.
Offering a bit of history about the company executives, James said Flex Fund was co-founded by himself; Richard Effress, who serves as chairman of the board; Andrew Kneeter and Gregg London. Effress also currently serves as principle of Integris, where he is focused on forming and launching new businesses, in addition to sponsoring acquisitions of new business.
Executives said James has experience across several industries, including more than 12 years of experience in auto finance.
"I had a strong desire to build a company that would provide products and services to the auto finance industry in markets that are either underserved or not served at all by the existing competition," James added.
"Intense research, coupled with career experience, helped us identify and design risk-neutral solutions for underserved market segments," he added. "Our exhaustive efforts have resulted in an exciting and innovative auto finance company."
Looking ahead, James said, "We're confident that our customers and channel partners alike will recognize the value proposition provided by Flex Fund. As that happens, Flex Fund will expand both the scale and scope of the enterprise."
For more information on the company, visit .