Related Finance Company

Maximize the tax benefits of the RFC with a fully integrated system that transfers the receivables and properly records all accounting activity in real time.

  • The Related Finance Company (RFC) was established in the late 1980s as a result of changes in US Tax Code.
  • The bottom line: After 1987, BHPH dealers were forced to recognize taxable income before they received the cash for that income.
  • Organizing the BHPH operation into two corporations, the used car lot and finance company solve for the disallowance of bad debt reserves and the installment sale method as presented in the 1986 Tax Reform Act (IRC §166) and 1987 Omnibus Budget Reconciliation Act (IRC §453).
  • By creating an RFC, both disallowances are overcome because a dealer deduction is made at the time of the sale [to reduce Gross Profit] for the percent of the receivable anticipated to be written off, and the finance company recognizes a ratable portion of the discount as income while it collects the cash.
  • By using a truly integrated solution such as Deal Pack, the buying & selling of notes, collection of payments and discounts and revenue recognition are achieved transparently, in real time, without switching between programs.
Deal Pack Features Deal Pack Pro Deal Pack Light Deal Pack Service & Parts
Sales: Retail, Wholesale, BHPH  
Leasing: Internal/External Leasing, LHPH  
Finance: Outside Financing, RFC, Floor Planning, Consumer Loans    
Real-time Accounting  
Third-Party Integrations
Payment Processing
Forms
Website  
Mobile Dashboard    
Customer Relationship Management    
Inventory Management
Prospect Scoring
Credit Applications  
Collections
Online Backup    
Users 600 1 600
Platform Windows SQL Windows Access Windows SQL
Support 9-6pm, M-F E-mail 9-6pm, M-F
Training In-house, On-site, Web Tutorial In-house, On-site, Web
Deal Pack Pricing $50/user/month Free $50/user/month