TORONTO and SHARON, Ontario -

Two Canadian auto lenders have struck a deal that is designed to help their mutual dealer customers in Ontario more easily facilitate subprime car loans.

In talks between leaders of the two lenders — subprime lender Cars on Credit and floor-plan financer Clubb Finance Corp. — the companies both emphasized that dealers were most concerned about the timing around shifting over the ownership of vehicles, releasing liens and getting the money.

“Dealers were uncertain as to how they could satisfy both companies’ internal requirements simultaneously,” officials explained.

Cars on Credit president Chris McMunn and director of sales and marketing Christie Groom met with Clubb Finance’s Rick Wilson and came up with a plan.

Officials said, “The resolution proposed is to have dealers transfer the ownership prior to funding and send all required documentation including the ownership to Cars on Credit. Upon receiving the documents, COC will notify CFC that they have received all necessary paperwork for funding.”

Executives further explained that the next step is for CFC to issue the lien directly to COC, who will then give the money to the dealer and alert CFC upon doing so. CFC asks that dealers transfer funds in five business days or less.

“Both Cars on Credit and Clubb Finance Corp. are committed to their dealers’ success and are continually looking for new and innovative ideas to support their clients in selling more cars,” the companies noted.

“As a dealer developing, improving and growing your used-car business, working with both companies should prove as an opportunity for you to keep more cars in inventory and sell to all levels of credit,” they added. “Both companies are pleased to announce this new relationship and hope that in having created it, you will recognize our commitment to your business and your success.”