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Budco Financial expects boost from dealer, health care clients
This article was originally posted on 7/28/2014 on Crain’s Detroit Business by
Sherri Welch. To view the original posting, click here.
Budco Financial LLC projects revenue will increase 33 percent this year to $10 million on the strength of new business with automotive dealer and health care clients.
The company is actively bidding on a contract with a health system outside of Michigan and expects to begin administration of medical payment plans by early August, Chairman Bud Brian said.
"If we can finance a service contract, we ought to be able to finance medical expenses for a patient checking out of a hospital," he said.
It's likely health care deductibles will go up for most people, Brian said. "More and more people are going to need alternatives to be able to pay their bills."
Through the new services, Budco Financial will finance a portion of the amount patients owe in medical costs and administer a medical payment plan for the health system. It will generate revenue from the interest for fronting the money to the health systems for those patient bills on payment plans and associated fees, Brian said.
At the same time, Budco Financial looks to expand the number of Ford dealers the company provides with an installment payment plan for their dealer service contracts. The plan enables dealers to offer customers interest-free financing on vehicle service contracts.
And it plans to pursue business with other, unnamed carmakers and other manufacturers like Caterpillar Inc., John Deere and Harley-Davidson about providing the same services to their dealers, Brian said.
"Our expectation is to double this business minimally in five years," he said.
Budco Financial and its 23 employees moved to 6,500 square feet of leased space at Fort Washington Plaza in downtown Detroit in March from the Highland Park headquarters of its former parent company, Budco Holdings Inc., which now operates as part of Dialog Direct.
Brian founded Budco, a marketing services company, before selling it in 2006 and buying the Budco Financial division back in late 2012 for $10 million.
Budco Financial is working with Southfield-based Moncur Associates Inc. on a new logo and plans to introduce it during an August open house at its new offices, he said.
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