Vehicle Service Contract Finance

The vehicle service contract (VSC) finance industry offers strong returns and a compelling diversification strategy for banks seeking to alleviate their dependence on traditional commercial and industrial (C&I) lending. VSC finance (aka warranty finance), like other specialty finance niches, is attractive to banks because of the relatively high yields, low losses, and short duration. Private equity firms, too, are attracted to the sector because of the high returns and opportunities to ultimately sell to commercial banks.

IR_Vehicle Service Contract Finance