Advantage Funding, an independent transportation lender, has developed a dealer finance model with Lease Here Pay Here (LPHP) to expand customer financing by reducing roadblocks to credit approvals.

“The largest hurdle for dealers looking to enter the subprime lending space is access to capital,” Ed Kaye, president of Advantage Funding, told members of the National Vehicle Leasing Association. “With the Lease Here Pay Here Program, we are removing that hurdle for many dealers across the country.”

Advantage Funding worked with LHPH, a San Diego-based lease service provider, for more than one year to develop the model. “LHPH finance structure works for both subprime loans and leases,” Kaye said, “enabling dealers to fund the cost of the vehicle, plus a small mark up, at below-market interest rates.”

LHPH provides short-term financing and low monthly payments in which dealers retain ownership of the vehicles throughout the lease period and guarantee by contract that any default must be paid off within 30 days.