Archive for the ‘Asta Funding Inc. ASFI’ Category

Asta Funding, Inc. (ASFI) Provides Unique Market Niche in the Resolving Consumer Credit Industry

Wednesday, July 9th, 2008

Asta Funding, Inc. (NASDAQ: ASFI), a leading consumer receivables asset management company, generates revenues primarily through the purchase and collection of performing and non-performing consumer receivables that have typically been either charged-off by the credit grantors or not considered to be prime receivables, such as MasterCard, Visa, other credit card accounts and consumer loans issued by credit grantors.

Based in Englewood Cliffs, New Jersey, Asta Funding specializes in the purchase, management and liquidation of consumer receivables, an industry that is growing rapidly as consumer debt continues to rise. Despite relatively stable economic conditions during the mid to late 1990s, credit card and other consumer receivable charge-offs have skyrocketed as overall consumer debt has increased. As of July 2006, the United States Federal Reserve reported that the revolving credit market in the United States was in excess of $841 billion, up from $700 billion in December 2001.

In order to maintain a low fixed-cost structure, Asta Funding utilizes a disciplined approach to portfolio acquisitions, deploying a combination of proprietary quantitative and qualitative methodologies. Asta Funding actively manages the liquidation of these portfolios by outsourcing collection activities to its large, national network of collection agencies and law firms, which enables additional cost flexibility depending on the liquidation strategy and maximizes portfolio collections.

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Asta Funding Inc. (ASFI) is “One to Watch”

Friday, April 11th, 2008

Asta Funding Inc., based in Englewood Cliffs, NJ, is a leading consumer receivable asset management company that is focused on purchasing, managing, and liquating performing as well as non-performing consumer receivables. The Company generates revenues mainly by purchasing and collecting consumer receivables that have been either charged-off by the credit grantors or not considered to be prime receivables.

The non-conforming and distressed consumer receivable market is continually expanding because of the rising levels of consumer debt. Even with the good economic conditions of the late 1990s, credit card and other consumer receivable charge-offs increased. To bring some numbers into perspective, Americans had aggregate indebtedness of more than $2.3 trillion in July 2006, and the size of the revolving credit market in the United States was in excess of $841 billion, which is up from $700 billion in December 2001.

Originating institutions have limited credit losses in the past by offering recovery services in-house, outsourcing recovery activities to third-party collection agencies and selling their charged-off receivables for immediate cash. Selling receivables prior to or after charge-off is highly desired by the institutions as it yields immediate cash proceeds and requires very little time compared to traditional collection and recovery efforts.

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