Solvar is consumer finance focused alone, with the minor exception that it took over Automotive Financial Solutions hollus bollus a couple of years ago and they now operate side by side. AFS does some commercial finance for cars, utes, vans, boats and caravans using a auto decisioning platform. Solvar has run foul of the Consumer licencing authorities with issuing loans to people who could not afford them (alleged by ASIC to have manufacured budgets, etc) as have many others. There is a lot of risk in consumer finance and the returns are lower.
Commercial finance is entirely unregulated so the risk is vastly lower - loan sizes are bigger and there is no risk of being prosecuted for issuing inappropriate loans - only the credit risk. IMO this could be a first foray into the wider commercial finance market, with equipment, secondhand stuff, etc. Factoring is a very hard business to be in, and requires experienced and capable staff, which EPY no longer has - they had a mass clean out some time ago.
SVR Price at posting:
$1.69 Sentiment: None Disclosure: Not Held
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