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BHPH information
I am interested in expanding into the BHPH market and know there is lots of regulation, compliance, collections and paperwork that goes along with that. Any idea where the best place is the get the training and paperwork needed?
Replies to This Discussion
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Permalink Reply by Harlene Doane on -
Neill,
First thing you need to do if you are going to get into the BHPH business is get a good attorney with expertise in the BHPH industry. They should review all of your forms specific to your state to make sure you are in compliance from that perspective from the beginning.
Second is make sure you have accounting software that can properly handle the complexities of BHPH. If your financial records are not in order you will have difficulty with obtaining capital when you need it to grow.
Next you can certain find education in this industry, NABD has several events during the year, but you will also find assistance through may state associations. You can often find assistance from your vendors. There are also some consultants in that space who would be willing to come on site and help you set everything up including processes to help ensure your success.
Best of Luck
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Permalink Reply by Ben Misra (secondarypro) on -
Setting up a BHPH dealer is easy.
Step One : Talk a bank or lender into giving you $ 500,000.
Step Two: Repeat step one
Any BHPH dealer will tell you the death of a BHPH dealer is under capitalization.
It is really not about expanding, it is about creating a new business.
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Permalink Reply by Jake C on -
Depending on what kind of inventory and down payments your taking will dictate your bank roll to start. I started with less then 200k two years ago. Now i got about 160 customers actively making payments. Hoping to be over 200 accounts before end of year.
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Permalink Reply by Gene Daughtry on -
Neill,
There are several consultants available that can help you. You can also read up on BHPH on this site. I have a group called BHPH Solutions under the tab GROUPS. There are others where many of your questions can be answered by reading the blogs. You can also go to Special Finance Insider and look up articles under Dealer Controlled Financing and read about BHPH.
I suggest paying someone to advise you before you start to help you go the right direction. It can be an expensive mistake or a rewarding venture.
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