Our Expertise

Our Origins

Founded in 2013, Right Road Finance is an Australian company providing motor vehicle finance to a select customer group.

Our proposition was born out of the inadequacy of Australia’s credit reporting system and the demand for loan product for the marginally credit impaired.

Our Approach

We have developed an underwriting strategy which rates and weights credit impairment. This strategy identifies marginally credit impaired loan applicants and lends them money to buy a motor vehicle.

Our Market

The market for credit impaired lending in Australia to finance motor vehicles far exceeds our capacity to service it. 10% of people can not access lending through mainstream lenders for a range of reasons such as having an adverse listing on their credit file, not having an adequate credit history or being self employed.

Our Return

We deliver circa 11% annual return on a vehicle asset secured loan invested capital over a 5-year term.

Investing with us

Above Market Return

Our loan fund Unit Trust is achieving in excess of a 11% annual rate of return to third party investors (unit holders). This is due to our highly disciplined underwriting process and the fact that we will only accept customers who meet our strict marginally credit impaired criteria. The impact of the net bad debt is passed through as a cost to the RRF loan fund, however loan defaults and associated bad debt write-offs are kept to a minimum.

Credit Risk

Right Road lends money to the marginally credit impaired to purchase motor vehicles; via reasonably priced, quality product; delivering increased vehicle sales to our valued dealer network; while providing a predictable commercial rate of return for our Lenders. We protect our Lenders against loss; maintain the integrity of the loan process; and treat our customers with dignity and respect.

The objective is to achieve above average risk adjusted returns by originating loans to a narrow band of marginally credit impaired individuals who are unfairly caught in Australia’s inflexible credit reporting system. We utilise our RRF proprietary 100 point process that is grounded and driven on an ability to pay – in essence the company offers loans to people who are a good credit risk, hence why we are able to fix our consumer interest rate.

Our loans are securitized by a vehicle asset that is mandatorily insured with Comprehensive Vehicle Insurance and, in a percentage of cases, optional Gap (Motor Equity) insurance.

Quality Channel Partners

All of our loans are sourced through a channel network of quality partners who operate ethically and are in alignment with our own credit standards and work practices. The majority of our loan book is sourced via a select group of finance brokers. Over time we will grow our dealer-direct channel to supplement our broker model.

Looking to invest in a secure asset class? submit our inquiry form and we’ll make contact to discuss your needs….

Looking to invest in a secure asset class? submit our inquiry form and we’ll make contact to discuss your needs….