We looked at a lot of deals lately and very few have the growth potential of CARS. We are very excited about helping them become the leader in this segment of the market.
Raleigh, NC (PRWEB) August 3, 2007
Web-based asset management provider Consolidated Asset Recovery Systems (CARS) has raised $623,000 in Series A funding from Wilmington Investor Network of Wilmington, NC and Springboard Capital of Jacksonville, FL.
The Raleigh based Company will accelerate their expansion into a segment of consumer lending that has traditionally been paper-based and therefore costly and inefficient. CARS automates the entire process of asset recovery from assignment of a case for repossession to the final sell of an asset at auction. By utilizing the CARS I-BEAM web portal (Internet Based Electronic Asset Management) Lenders are achieving cost savings of anywhere from 40% to 60%, which are easily measured through the automatic reporting features within the system.
According to CARS president Steve Norwood, the company is on the leading edge of a fundamental shift in the way lenders manage the repossession and disposition of non-performing assets. "This is the unpleasant side of consumer lending and a great opportunity for lenders to outsource the process to a company that specializes in managing it electronically.
Traditionally lenders were forced to work recoveries in an environment of multiple touch points, coordinating with a variety of local independent agents over large geographies. This created a "Many to Many" problem. CARS can manage the process for them today at a fraction of the cost, securely and efficiently. In addition, each lender can monitor their activity and cost in real time through our hosted web portal 24/7. Our combined community of agents, transporters, and auctions provides a single source solution for all aspects of the recovery and remarketing process, thus eliminating the multiple touch points.
The "pay by the case" web-based model allows each lender to pay for the service based on their usage. This circumvents the high up-front cost typically associated with software. Al Rossiter of Springboard Capital said, "Some of our members come from the banking community and were very impressed with the savings the existing customers were achieving through use of the service. We believe that CARS represents a very promising emerging business and we are pleased to be able to support their continuing expansion"
Mr. Norwood would not disclose funding terms, but said that this round would be used to bring on additional resources and manage growth, allowing CARS to accelerate market penetration and scale the business to meet increasing demand. Michael Cain of WIN said, "We looked at a lot of deals lately and very few have the growth potential of CARS. We are very excited about helping them become the leader in this segment of the market."
About Consolidated Asset Recovery Systems:
Consolidated Asset Recovery Systems http://www.ez-recovery.com is headquartered in Raleigh, North Carolina and supports the recovery of assets for lenders with a nationwide network of Certified Recovery Agents. Founded in February of 2005, CARS has built a very loyal customer base of both prime and sub-prime lenders. CARS provides a service called IBEAM™ (Internet Based Electronic Asset Management), Web based technology managing the repossession process electronically.
About Springboard Capital LLC:
Springboard Capital, LLC is a member-managed private equity fund focused upon seed and early stage investment located in Jacksonville, Florida. Springboard's members, all individual accredited investors, guide the fund's activities and play an active role in all aspects of investment opportunity analysis, due diligence, investment structuring and post-investment collaboration. http://www.springboardcapllc.com
About Wilmington Investor Network, LLC (WIN):
WIN is a manager managed pledge model angel investment entity. Wilmington Investor Network is a founding member of the Angel Capital Association (http://www.angelcapitalassociation.org) which adheres to a series of best practices in angel investing. The Angel Capital Association and Angel Capital Education Foundation (http://www.angelcapitaleducationfoundation.org) are sister organizations spun our of the Kauffman Foundation,(http://www.kauffman.org) in 2006. WIN invests in early stage technology and life science entities located within the southeastern United States. http://www.wilmingtoninvestor.com
Consolidated Asset Recovery Systems, Inc.