Collateralized Advance Program

TMG Financial Services offers credit unions and credit union syndicates the opportunity to invest members' dollars in a secured growth vehicle through the Collateralized Advance Program (CAP).

Through CAP, credit unions have the ability to earn an above-market yield while having the protection of a loan backed by a high-quality asset pool – all while advancing the credit union industry. Since 2007, TMG Financial Services has raised more than $158 million in CAP funds across the 60+ participants that have been involved in the program.  This includes $61 million raised in 2010.  In addition, last year TMGFS paid more $4.5 million in interest to credit unions.

Offer Attributes

• Structured as a loan to a CUSO
• Funded advances have a standard 2-year term (alternative terms available)
• Fixed interest rate
• Secured by high quality credit card receivables
• Credit and fraud losses assumed by TMGFS
• Comprehensive reporting on underwriting and portfolio performance
• Semi-annual interest payments
• Advances funded periodically based on portfolio acquisitions
• Comprehensive reporting on underwriting and portfolio performance

How it works

CAP is built on the reality that there are credit unions with liquidity looking for favorable investment opportunities. CAP leverages these funds and creates an innovative industry solution that keeps valuable credit card assets and relationships within the credit union system.

Funds are only advanced when a portfolio is ready to purchase. Portfolios are examined individually and are evaluated using strict underwriting and risk management policies.

For more information, please contact:

Ben Rempe, Vice President of Business Development
TMG Financial Services
(515) 457-5288