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.
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.
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