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Roughly 25–40% of BHPH customers become delinquent within the first 60 days.

BHPH is a cash-intensive business. Once a dealer has loaned out all their capital to customers, they "run out of cash" but have a "portfolio of notes" (contracts). To get cash back to buy more cars, they sell these contracts in bulk to financial institutions. Key Terms in Bulk Portfolio Sales: buy here pay here bulk purchase

Dealers use their current loan contracts as collateral to borrow more money. Roughly 25–40% of BHPH customers become delinquent within