Hancock Park-based Westlake Financial Services Inc. and its sister company, mid-Wilshire-headquartered Nowcom Corp., have entered into a strategic partnership with Canadian auto finance company Source One Financial Corp.
The deal will allow Westlake and Nowcom to expand into the Canadian non-prime auto finance market, the companies said.
“We have seen growth with our initial entrance into Canada and we believe Source One will enhance that by opening doors to more dealers and their customers,” Westlake Technology Holdings Group President Ian Anderson said in a statement.
Westlake Financial is the retail auto financing arm of Westlake Technology Holdings Inc. It is currently the largest privately held auto finance lender with more than $10 billion in assets under management, according to the company.
Westlake Financial Services is a Hankey Investment-controlled entity chaired by Don Hankey.
Nowcom develops automotive and finance software for Hankey Group companies and for external businesses such as auto dealerships. It also provides information technology support to all Hankey Group companies.
As part of the new partnership, Nowcom will supply Source One-affiliated dealers in Canada with technology such as a proprietary credit adjudication tool.
Westlake Financial will provide backing for Source One to make and service loans for near-prime Canadian customers. Those loans will be branded under Source One, which will split the profits with its American partners.
“Source One’s leading position in the Canadian non-prime automotive finance sector and Westlake Financial’s expertise and experience in the American market make our partnership a clear win-win,” Source One President and Chief Executive Tim Tremain said in a statement.
Tremain added that he was optimistic that the partnership would be the start to a “a long, prosperous relationship” between the companies.
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