U.S. Used Car Loans

Investing in short-term inventory loans from US used car dealers is beneficial from the steady growth of the US auto market.

• Huge Market

  Since 2005, around 35 to 45 million used cars have been sold in the U.S. market, three times the number of new cars sold. Since 2010, the volume of used cars transactions in the United States has continued to grow.

• Mature Used Car Market

  The U.S. used car financial market is relatively mature. The penetration of auto financial services in the US used car market has been steadily increasing. In Q4 2018, the US used car penetration rate of financial utilization reached 53.6%.

• Regulated and Transparent

  Used car market in the U.S. is regulated well and vehicle price information is transparent and safe. Car background information service companies, such as CarFax, create "vehicle history reports" for each vehicle. Valuation agencies such as Kelley Blue Book analyze reasonable valuation ranges through vehicle information.

• Large Profit Potential

  Average gross profit of used cars is 12%, increasing along with the age of vehicles, reaching up to about 20%.

U.S. Fix-and-Flip Loans

Invest in selected US fix-and-flip loans and achieve superior returns through both rental income and capital appreciation

• Fix-and-Flip Loans to Fill Market Gap

  Fix-and-flip loan proceeds are used by the developers to purchase existing properties, renovate, and then rent out or sell at higher prices to achieve superior returns.

• Rapidly Growing Fix-and-Flip Loans

  43.6% of home flipping in 2019 were financed by loans, equivalent to an amount of $32.5 billion, up 21% from 2018, a record high in 12 years.

• Shortage of Funds for Fix-and-Flip market

  Traditional lending institutions such as banks are subject to strict regulatory restrictions after financial crisis, and loans provided are generally only for long-term housing. Therefore, short-term real estate lending markets has a large gap, which creates a huge demand for non-traditional loans.

• U.S. Equipment Financial Leasing

  Invest in equipment leasing companies that rent out equipment purchased with financing from the Fund

  U.S. has many large-scale infrastructure construction projects and high-tech companies, which have a constant demand for large-scale equipment and precision instruments. Total public and private investment in equipments and softwares grew to $1.8 trillion in 2018. Currently, 78% of U.S. companies use financial instruments such as loans, leases or credit cards when acquiring equipments.

• U.S. Supply Chain Financing

  Invest in companies with mid- to down-stream supply chain financing needs

  With $2 trillion in financeable payables globally, supply chain financing is well developed in the U.S. The Government and banks have many preferential policies for SMEs along the supply chain. Supply Chain Financing projects exported from the U.S. can be guaranteed and endorsed by full insurance and EXIM bank.

• 1

  Assets Collateral

  Local Platform i.e. Borrower, uses vehicles, properties, and securities as collateral. Haitou has the senior priority interest in it. Once default, Haitou can dispose of assets and repay the loans.

• 2

  Principal & Interest Guarantee

  Repayment of each loan is fully guaranteed by parent company of Local Platform.

• 3

  Subordination

  Loans are securitized, with 90% senior tranche held by the Note, 10% junior tranche held by the Local Platforms.

• 4

  Compliance & Regulation

  Each Local Platform is regulated by the local financial institutions and must have credible licenses in each industry it operate.