thanks Dan, I will try to explain,
For many years I owned a used car lot,selling to unfinancable clients
Rather than selling my accounts recievable, (money owed to me for cars I sold then financed for customers) I formed a finance company, and bought this paper from myself.
the success in collecting is dependant on buying paper that is collectable. ACRT does much the same thing. They buy accounts recievable from small companies at a discount, then collect fees and interest from buyer and seller!
their default rate is extremely low because collecting from businesses,whose credit has been verified, is very efficient. I am also very impressed with ACRTs growth rate, and the fact that they have no competition. Their potential market has barely been scratched. As to the question of TADS, a tad is nothing more than a bank draft with a new name, bank drafts have been used for years, check with your local bank! As for Mr. Aharonis past business failure, if past business failures were any indication of dishonesty, nearly every successful business person in America today would be in prison instead. Because of ACRTs unique business, and the fact that it has never been done before, people not familiar with sub prime lending are easily confused. As for me, I only wish I had come up with the idea first!
These guys are gonna make a bundle, they are on to something big. |
