New York, January 6, 2014 – Seabury announced today that it has launched a wholly-owned subsidiary, SING FOR SERVICE, LLC which will set up, finance and administer a special purpose vehicle called “SeaVS” for customers who sell and administer vehicle service contracts (“VSCs”).
SeaVS Finance VSC Payment Plan
SeaVS will provide the ultimate purchaser of VSCs the flexibility and convenience to pay for the plan premiums without incurring a loan. The premium will be spread equally over a term of the customer’s choice from 1 to 24 months (depending on the duration of the VSC) with number of installments being no more than half the term of the VSC and the payment plan will be free of any interest charges or other special finance charges.
The VSC finance industry has a sizeable industry. U.S. consumers spent $14.7 billion in 2012 on service contracts for their motor vehicles, as reported by Warranty Week. With capital funding limited traditionally by commercial banks makes it a perfect receivable securitization candidate, enabling the participation of institutional funders at a much more liquid, lower cost and robust volume.
At the time of purchase of a new or used car, traditional auto lenders frequently allow customers to include the purchase of an extended warranty or VSC in their financing packages but do not provide enough credit to allow for the inclusion of a VSC. Furthermore, traditional auto lenders do not provide financing for VSCs sold independent of a vehicle purchase. Offering a VSC after the sale provides additional time for customers to consider such an important purchase without additional pressure. When offered in an affordable and convenient way, today’s empowered consumer may better appreciate the aftermarket VSC offer and will be better prepared to truly grasp the many benefits of a VSC. Seabury recognizes the need to expand the handful of specialty finance companies in order to fuel the growth of the VSC industry as it grows with the auto industry, by providing capital availability to the market place.
John E. Luth, founding partner and chief executive officer of Seabury Capital says, SeaVS is a natural extension for the Seabury Capital of companies. We see tremendous potential for combining our structuring experience across the fin-tech and financial services sectors. At Seabury, we are glad to provide senior managerial and operational expertise and capital liquidity to the vehicle service contract industry. Over the years, we have built practices in receivables finance, insurance knowhow, the leading global trade databases, logistics consulting and analysis, contract performance analysis systems and foreign exchange platforms. The launch of SeaVS adds to our list of specialty finance.”
Margaret L. Chan, managing director at Seabury Capital and President at SING FOR SERVICE, LLC adds, “Our team worked with multiple sellers, third-party administrators and funders in the past year to learn about the VSC industry. We plan to bring transparency to the payment plan market by making available not only performance of each vehicle service contract but a cost efficient way for funding outstanding payments with alternative non-bank financing. Eventually we plan to roll out similar financing means to complement direct auto dealer and manufacturer extended warranty industry.”
For more information, please visit www.seavsllc.com
About Seabury Capital
Seabury is a global advisory and investment banking firm with over 250 professionals based in 14 countries on five continents, including six offices in the United States, providing clients a comprehensive approach to driving business solutions, no matter how complex or challenging the issues. Seabury provides investment banking and merchant banking, management consulting, enterprise MIS software solutions, structured investment products, FX trading software, trade finance solutions, and human capital advisory services to clients in the following industries: aerospace, automotive, aviation, cargo/logistics, explosives/mining, financial services, gaming, hospitality, infrastructure, insurance, manufacturing, maritime/offshore oil & gas exploration, metals processing, mining, private equity, debt and hedge funds, real estate and travel.
Seabury professionals are a unique combination of top-tier bankers, consultants, software solutions experts, and former industry executives that provide in-depth advisory services to effectuate enterprise-wide change. Since 1995 Seabury’s professionals have advised on over 900 client engagements globally including assignments involving negotiating new or existing aircraft orders totalling over $250 billion (list prices) and structuring over $80 billion of equity and debt capital transactions. Additionally Seabury served as investment banker and restructuring advisor for 10 of the 15 largest airline turnarounds, including restructuring over $100 billion of debt and lease transactions.
Seabury has increasingly broadened its global businesses to include structured finance products, enterprise software, and trade finance services. Seabury is a global leader in providing software tools and data products covering aviation, aerospace, cargo/global trade, FX trading and human capital. Seabury has developed world-class, enterprise-wide MIS systems that can extract information, manage contracts, and evaluate data across an array of IT systems delivering real-time analysis and executable information. In 2013 Seabury acquired FXone Ltd., a leading provider of new software tools and enterprise software for market makers, brokers and traders for FX trading based in San Francisco which has been renamed Seabury Financial Solutions LLC, and 1 East West Limited, a provider of innovative supply chain finance solutions, based in Hong Kong, which has been renamed Seabury Trade Finance Exchange Ltd.