Canadian Bank Sub-Prime Lender

Canadian Bank Sub-Prime Lender (CBSPL)

Brief Overview

The subprime lending industry has always seemed like a lucrative business. With the high rates that are charged and ability to purchase loans at a discount, it appears that the returns are sufficient to compensate for the risk.



CBSPL wanted to branch into the sub-prime lending business in Canada. They had no experience in this industry and were looking for guidance in how to build a profitable business.


Why Goff Associates, Inc. (GAI)?

GAI has substantial experience in the sub-prime financial sector. GAI consultants have written several credit policies for sub-prime lenders that have reduced losses from prior levels.

GAI prepared a business plan for the bank that demonstrated how the business could be built profitability and then introduced the bank executive to the dealers that they would be buying contracts from. Once the bank realized the level of misrepresentation that occurs in the industry, the bank decided not to enter the industry. The sub-prime lending business is not for the faint of heart. It requires extreme diligence in verification to assure that the loans will perform as you expect them to.

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