▼ scroll down to learn more ▼
Kut Auto Finance LLC (“Kut Auto Finance”, or the “Company”), began business operations on September 23, 2019 to purchase, refinance, and manage defaulted auto retail installment contracts (auto loans). The Company intends to construct a portfolio of retail installment contracts acquired at advantageous price levels, while carefully executing, and administering for attractive XIRR. The Company’s legal structure was formed as a limited liability company (LLC) under the laws of the State of Alabama on September 23, 2019. The Manager of the Company is Kut Financial, Inc. and the individual manager is Nathaniel Syme.
Hundreds of billions of dollars of consumer automobile loans are purchased by investors on an annual basis. Much like securitized auto products, retail installment contracts represent an asset class that has displayed reliability and consistency throughout multiple business and economic cycles. A professionally constructed portfolio of retail installment contracts acquired at advantageous price levels, with individually screened borrowers, combined with AI and ML, and administered by best-in-class vendors, can provide attractive yields with managed downside risk.
Kut Auto Finance, LLC is a purchaser, refinancer, and portfolio manager of subprime to near prime automobile loans in the form of retail installment contracts. When the company acquires these assets, the contracts will be aggregated into pools, and managed for cash flow and resale. Our individual and institutional investors are provided with access to ease of ownership, loan diversification, analytics, monthly reporting, and returns on hand-selected vehicle loans that have been placed into a pool. Investors can take advantage of this without the difficulty of needing to deal with licensing, collateral management, loan selection, loan pricing, servicing, regulation, and other complex matters.
— according to Experian Q3 2019 Automobile Finance report
The Company intends to build the portfolio by acquiring currently delinquent loans from non-bank lenders, credit unions, and others at discounted prices, typically near wholesale book value. Once the loan data file is provided from the originating lender, the Company will use TruDecision to score the risk of each loan in the proposed delinquent portfolio and then run the portfolio through the Company’s proprietary risk model. This will be used to segment the proposed portfolio into risk tiers, but also the proper purchase price for those tiers, XIRR, IRR, NPV, and expected cashflows. Once delinquent loans are priced and placed into a tiered system for valuation, the loans that do not meet the Company’s requirements are discarded (See “Exhibit B: Lending Program Requirements”).
The Company will contact and offer the highest scoring consumers a new contract structure, refinance, request 1st payment up front, and significantly lower the payment to the consumer. When the customer agrees to a new contract, and provides the required documentation in a dedicated manner, then the company will make an offer to the lender for purchase. When the lender agrees to the purchase price, the Company will restructure the loan, sign the new contract with the customer, collect 1st payment, buy and transfer the contracts and liens on collateral, and deposit all assets into the Fund, where investors are paid from cashflows before the Company, while being collateralized by the vehicle titles.
From time to time The Company will choose to sell the acquired Retail Installment Contracts it has obtained. The strategy for resale will depend upon many factors including the payment history of the customer. Typically, The Company will market these contracts by either reselling contracts which have re-established payment history, gone into default and we sell at a discount to other buyers, or repossess the vehicle for wholesale at auction or direct sale to dealers. The Company has identified several sales channels for the disposition of assets at each stage of repayment.
- economists at the New York Fed wrote in a blog post
The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.
Founder & President
Nathan Syme serves as a principle manager for both Kut Financial Inc. and Kut Auto finance LLC. Mr. Syme has enjoyed a career as a successful entrepreneur and Auto Finance Director spanning 21 years with a broad array of expertise in start-ups. He has also spent the last 8 years in auto finance with a focus on subprime lending, risk assessment, and credit evaluation. Mr. Syme is responsible for overall management of Kut Financial Inc. and Kut Auto Finance LLC., and has senior approval responsibilities for the inclusion of assets into the fund portfolio.
Prior to serving as the founder and principle with Kut Financial Inc./Kut Auto Finance, LLC, Mr. Syme worked with Chevrolet, Toyota, and Ford as a Finance Director in Nevada, Colorado, and Alabama, where he was responsible for lending compliance, underwriting, and funding of deep subprime to super prime auto loans. He currently resides in Birmingham, Alabama.
Lending Compliance, Vender Management, & Underwriting Advisor
Mary Jo Terry brings over 13 years of corporate and consumer lending experience. Since 2017 Mrs. Terry has been the Managing Partner of Yrefy, a Phoenix, AZ based student loan refinance company who specializes in helping people refinance their defaulted student loans. In 2019, Mrs. Terry took the position of Advisor with Kut Finance Inc.
Mrs. Terry is responsible for advising on compliance, vendor selection and contracts, and risk management for underwriting. Her expertise in these areas allow Kut Auto Finance, LLC to establish compliance policies and procedures, efficiently negotiate the purchase of assets, manage vendor contracts, and refinance loans. Mrs. Terry has significant experience in these areas and is an asset to the creation and growth of Kut Auto Finance, LLC ’s loan products, and portfolio management.
Mrs. Terry has a Bachelor’s Degree in Business Administration and currently resides in Scottsdale Arizona. Mary Jo brings approximately 20 years of experience within the educational loan and institutional receivables sectors, and has a diverse background in sales, business development, and marketing. In her new role, Mary Jo will contribute to the growth and supportt of Gatestone’s educational Accounts Receivable Management and Business Process Outsourcing client base.
Strategic Capital Management & Marketing Advisor
Kasten Spethmann has worked in communications, marketing, and business strategy for 17 years. She was a founder of a cosmetics company where she helped invent, patent, and market consumer products in the cosmetic industry. Mrs. Spethmann has experience in several other sectors including technology, telecommunications, medical, and consumer services. Currently, Mrs. Spethmann is an ethics and leadership coach for founders, and C-level managers using her online training platform to assist entrepreneurs manage strategic and psychological challenges. Additionally, Mrs. Spethmann has been a contributor for Arizona State University’s WP Carey School of Business, and works with collegiate and professional athletes.
In 2019 Mrs. Spethmann joined Kut Financial Inc. as an Advisor. Mrs. Spethmann is responsible for advising on employment recruitment, mission ethics, marketing, consumer messaging, and investor relations. Mrs. Spethmann has extensive experience in building a team and ensuring a congruency with our culture and mission. Her marketing and venture capital experience will allow Kut Financial, Inc. to locate and recruit high quality management and other team members.
Mrs. Spethmann has bachelor’s degrees in both Psychology and Business and resides in Portland, Oregon.
Minimum Offering: $750,000
Minimum Investment: $25,000 (25 Units)
The Company is offering a minimum of 750 and a maximum of 6,000 Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 750 and 6,000 Membership Units will be issued.
The Membership Units sold through this Offering shall participate in distributions of net profit from operations on the following summarized schedule and terms and subject to the specific terms of the Operating Agreement;
Please complete the contact form and we will get back to you about any questions you have about our offering.
Kut Auto finance LLC - 2100 Southbridge Pkwy, STE # 650 - Birmingham, AL 35209 — firstname.lastname@example.org — (205) 414-7445
The Kut Auto Finance LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:
Once your account is upgraded you will have additional access including: