Vendor FInance Checklist

Hi Walter

Yes, these lists exist but they are usually sold as education publications.  Are you looking for a straight checklist or are you looking for a manual that takes you through the whole process, in a step by step fashion?
 
Cheers,  Paul

Hi RC

Their are a number of wrap kits/packs available in the marketplace.  Rick Otton's Wrap Pack is still available, Steve McKnight's Wrap Kit is no longer being sold and I think Paul Zelitis (not sure if that's the correct spelling) also has one out.  I don't know the name of Paul's but I do have both the others.

One point to remember about all these Kits/Packs is that any legal paperwork that's included is only an example and should not be used in a real transaction.

We get charged $980 to get our Instalment Contracts drawn up.  Who pays that $980?  The new buyers.  We tried doing it ourselves but it takes way to long and why would we bother, when the new buyers pay and we have confidence that our solicitor will get it right.

Also, we insist that every one of our new buyers gets independent legal advice.  Even with the old Uniform Consumer Credit Code, we thought that was a must but with the new national consumer credit legislation coming into place soon, we believe we'd be crazy not to.

Sure an Instalment Contract does give your new buyers access to the FHOG but it also means the government regard you as a credit provider.  We haven't found that to be a problem because we're very conscious of the demands of the UCCC and use lawyers to make sure we abide by it.

Cheers,  Paul

Hi RC

In answer to your first question, I've got to declare that I'm biased because we do Vendor Finance Training Joint Ventures.  In 2003, when we started, we bought a manual and then, over the next few years, we paid (lots) for on going mentoring/training.  

Knowing what we know now, we'd probably buy a manual and get an experienced vendor financier to walk us through our first transaction(s), while sharing the profits from that transaction.  This would have turned expensive initial training into money making training.  It would have also helped us miss the mistakes we made as newbies (you can't get everything into a manual).

Yes, there will be Licencing for all vendor finance transactions, except Lease/Options, after 1 July 2010.  The interesting point about the new Australian Credit Licence is that licensees can appoint representatives.  It will also be interesting to see if entering a JV with a licenced entity will give coverage to the transaction.  It's unlikely that the old guideline, i.e. more than 5 transactions and it's a business, will apply.

I hope that helps.

Cheers,  Paul

Hi Walter

Tony Cordato – 02 8297 5600

Cheers,  Paul