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INDIRECT LENDING
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Who Pays: Dealer pays the DefaultShield premium
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How: Applied as a “short funded” acquisition fee
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Why It Works:
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Dealers already expect acquisition/bank fees
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Makes loans more attractive without requiring co-signers or high down payments
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Lenders get protection; dealers maintain profit
DIRECT LENDING
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Who Pays: Lender pays the DefaultShield premium
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How: Lender may charge a small origination fee (compliant with CFPB)
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Why It Works:
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Keeps lender in control of deal structure
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Provides competitive terms for members
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Adds protection while maintaining profitability


Title | Direct Lending | Indirect Lending |
|---|---|---|
GAP/VSC Integration | Fully supported | Dealer keeps their back-end products |
Benefits | Control, margin, protection | Dealer buy-in, smoother closings |
How It’s Paid | Origination fee or absorbed | Acquisition fee (short funded) |
Who Pays Premium | Lender | Dealer |
Application Source | Member applies with lender | Dealer submits deal to lender |
FAQ's
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