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Executive Summary

The Company
 

Sonoran Financial Services, LLC (the "Company”, "Sonoran") is an Arizona limited liability company formed in 2007.  The Company was originally formed as a check cashing business, payday loan provider and tax preparer in Mesa, Arizona and opened for business in 2008.  The Managing Member, Vincent J. (Jim) Morrissey, determined early that the check cashing and payday loan industry was over saturated with these types of entities and looked for additional opportunities in the financial services sector.  In late 2008, Jim began to study and observe various auto title loan entities and determined that there was an opportunity in this arena.

 

Auto title loan facilities offer their customers the ability to meet their short-term financial needs by borrowing funds using their vehicle as collateral.  These "Title Loan" contracts are generally one to two months in duration but are typically renewed by the borrower several times.  Per industry standards, these loans are secured by vehicle titles at an amount approximating 50% of the wholesale value of the vehicle.  Generally, these loans carry monthly interest rates between 5% - 15% and require the customer to make monthly or bi-weekly payments.  For most of these customers this type of financing is the only option available to them, as banks and other lenders have determined that this is not a viable business for them due to the transaction costs involved.

 

In addition to title loans, Sonoran also provides other related financial services.  They include pre-owned vehicle financing, vehicle licensing and registration, auto insurance and ATM services.

 

In 2008 the Company applied for and was selected as a satellite office for the Arizona Department of Transportation (ADOT) Motor Vehicle Division.  These authorized third parties act as agents for ADOT, allowing customers to license and register their vehicles at convenient neighborhood locations, with the satellites charging a convenience fee for these services.  Currently, these fees average in excess of $25,000 per month in revenue and have been increasing every year.

 

The Company also provides customers with the ability to finance vehicles through its dealer finance program that has been set up with selected dealers.  It  has established relationships with these dealers to facilitate transactions beneficial to the dealers, their prospective customers and Sonoran.  The Company's financing 

program offers these dealers a more profitable financing method for their customers than its competitor’s programs. 

 

Sonoran fully intends to expand this dealer network with newly available funding.  These dealer relationships provide growth without additional facility costs and additional employees.  The Company plans to add more specialty truck dealers selling tow trucks and other commercial vehicles.  The loan mix currently contains several tow operators whom have proven very good credit risks as their livelihood depends on their payment performance. 

 

 
 

 

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