Modern Finance Company

What Modern Finance Company does

Modern Finance Company is a privately held California-based auto finance company that has specialized in purchasing retail installment sales contracts from licensed non-franchised used car dealerships in Southern California since its founding in 1952. Operating under a California Financing Law license and holding active memberships in the California Financial Services Association and the American Financial Services Association, the company occupies a niche role in subprime and alternative auto financing, serving dealerships whose customers may not qualify for traditional bank credit.

The company's product surface is intentionally narrow. Its core offering is contract-purchasing and direct loan servicing for used vehicle buyers, with revenue generated through interest income over the life of each retail installment contract. Its technology footprint consists of a WordPress-based corporate website, a credit education resource, and a secure customer-facing online bill pay portal hosted at onlinebiller.com that supports one-time payments, automatic payments, paperless e-billing, and debit card and ACH/electronic check transactions. Borrower servicing extends across multiple channels including phone, mail, in-person, Western Union, MoneyGram, and PayNearMe at 7-Eleven locations, with payoff quotes delivered within one hour via email and an in-house insurance tracking function.

Commercially, Modern Finance Company operates a B2B2C model. On the upstream side, it sources contracts from independent used car dealerships through direct outreach and a dedicated dealer service line ([email protected]); on the downstream side, it services the resulting loans directly with end consumers. The company is headquartered at 15315 Magnolia Blvd Ste 128, Sherman Oaks, California, employs between 11 and 50 people, serves only U.S. residents, and does not publicly disclose interest rates, loan terms, or fees. No funding rounds, M&A, leadership changes, parent company, or institutional investors are documented in the available sources.

Name

Modern Finance Company

Legal name

Modern Finance Company

Website

https://modernfinance.com

Company type

Private

Founded year

1952

Operating status

Operating

Headcount range

11–50 employees

Short description

Modern Finance Company is a privately held, Sherman Oaks-based auto finance firm that purchases retail installment contracts from non-franchised used car dealerships in Southern California and services the loans directly with consumers through an online payment portal.

Ownership category

akta.pro rank

Product category

Consumer Auto Lending

NAICS

Sales Financing (52222)

SIC

Personal Credit Institutions (6141)

akta.pro primary industry

New & Used Auto Purchase Loans (FSAKADAA)

akta.pro secondary industry

Auto Loan Servicing & Collections (FSAKADAK)

Keywords

• Auto financing services
• Used car loans
• Installment contracts
• Consumer auto lending
• Dealer floor financing

Headquarters

HQ city

Sherman Oaks

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Others

Revenue model

1. Auto Finance Interest Income: Modern Finance Company generates revenue by purchasing retail installment sales contracts (auto loans) from non-franchised used car dealerships. The company earns interest income on the financed vehicles over the life of the contracts. Loans are made or arranged pursuant to a California Financing Law license.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels1 record

Core offering

Modern Finance Company purchases retail installment sales contracts (auto loans) from licensed independent, non-franchised used car dealerships located in Southern California and then services those loans directly to the end consumer through an online payment portal, handling billing, payment processing, insurance verification, and customer service. The company has specialized in this used-vehicle auto financing model continuously since 1952.

Product overview

Modern Finance Company is a single-product auto financing company that has specialized in financing automobiles for over 60 years. The core product is auto financing through purchasing retail installment sales contracts from independent used car dealerships in Southern California. The company offers an associated online bill pay and electronic billing service as a customer-facing module accessible through a secure customer portal. These offerings form a focused auto finance service with no modular product ecosystem or platform architecture.

Differentiator

Problem solved

Functional benefit

Products and services

• Auto Financing Services Core auto financing offering under which Modern Finance Company purchases retail installment sales contracts (auto loans) originated by licensed independent, non-franchised used car dealerships in Southern California and then services those loans directly to the end consumer, including billing, payment processing, payoff quotes, insurance tracking, and customer service. Loans are made or arranged pursuant to a California Financing Law license and are available to U.S. residents only.

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Two partnerships are on record, tiered minor.

• California Financial Services AssociationminorOthersModern Finance Company is an active member of the California Financial Services Association, an industry trade organization representing financial services companies in California.
• American Financial Services AssociationminorOthersModern Finance Company is an active member of the American Financial Services Association, a national trade organization for the consumer credit industry.

Scale indicators2 records

Recent moves1 record

Expansion highlights3 records

Direct peers

• Regional Acceptance Corp: Indirect auto finance company providing installment contract funding through a network of franchised and independent auto dealers. Comparable dealer-channel origination model serving subprime and near-prime borrowers.
• Finance Corporation of America: Indirect auto lender serving independent and franchised used car dealers with installment contract purchases. Comparable B2B2C model targeting non-prime borrowers through dealer relationships.
• Westlake Financial: California-based indirect auto lender that purchases retail installment contracts from independent and franchised used car dealerships. The most direct comparable to Modern Finance given overlapping SoCal footprint, dealer-channel model, and used vehicle finance focus.
• Exeter Finance: Indirect auto lender specializing in non-prime and near-prime borrowers, serving franchised and independent dealers across multiple states. Comparable channel model and credit profile of borrowers, though operating at significantly larger scale.
• Credit Acceptance Corporation: Public subprime auto finance company that funds loans through a nationwide network of franchised and independent used car dealers. Closely matches Modern Finance's business model of purchasing installment contracts from independent dealers and servicing borrowers directly.
• Kinetic Advantage: Dealer-based auto finance company focused on providing contract purchasing to independent used car dealerships. Direct overlap in target channel, customer segment, and product offering with Modern Finance.
• CPS Auto: Indirect auto lender focused on the non-prime segment, originating through independent and franchise used car dealers. Comparable product offering and target borrower profile, though with broader geographic reach.
• American Credit Acceptance: Subprime auto finance company focused exclusively on dealer-originated loans through independent used car dealerships. Operates with a similar B2B2C structure, purchasing retail installment contracts and servicing end borrowers directly.
• Honor Finance: Dealer-based auto finance company serving independent used car dealerships with installment contract purchasing. Closely aligned business model of acquiring retail installment sales contracts from non-franchised dealers.

Broad incumbents

• CarMax Auto Finance: Captive finance arm of CarMax providing used vehicle financing to retail customers. Operates at massive scale in the used car finance market but serves captive dealer channel rather than independent dealers like Modern Finance.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights5 records

Customer concentration

• LinkedInlinkedin.com/company/modern-finance-co

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Modern Finance Company