Sunwest Funds $4.5 Million in Subprime Lender Rediscount Credit Lines
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ANAHEIM, Calif. — Sunwest Bank funded $4.5 million in credit lines for subprime auto finance companies in June, its senior vice president of commercial lending reported to SubPrime Auto Finance News.
"We funded one for $2 million and another for $2.5 million," said Matt Rogers, of Sunwest.
"Both borrowers are indirect auto finance companies (acceptance companies) that purchase contracts from used-car dealers in the Los Angeles, Calif., area," he noted.
Rediscount basically means the act of discounting a short-term negotiable debt instrument for a second time.
"Banks may rediscount these short-term debt securities to assist the movement of a market that has a high demand for loans. When there is low liquidity in the market, banks can generate cash by rediscounting short-term securities," according to Investopedia.com.
Rogers recently took on his new position with the company, heading up a team of lenders specializing in rediscount lines of credit for special finance companies, in addition to traditional commercial and industrial business lending.
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Sunwest Bank has several branch offices in California, including in Tustin, Anaheim, Newport Beach, Laguna Hills, San Clemente, Encinitas, in addition to three branches in Flagstaff and one in Cottonwood, Ariz.
For more information, visit www.sunwestbank.com.
