Benefits of Indirect Lending for your Credit Union

  • 89% of consumers complete auto loans at
    the dealership (JD Power & Associates)
  • Enables credit union to compete at the point of
  • Adds more new auto loans to your portfolio
  • Extends your hours of lending (evenings and weekends)
  • Indirect loans account for 33.5% of all credit union loans
  • Has become an important loan program for credit unions
  • Addresses decreasing member loyalty
  • Increasingly difficult to compete against dealership financing options

The KLA Advantage

Our Full Service point of sale lending program is designed for Credit Unions that may not have the personnel or expertise to coordinate a full scale Indirect Program. KLA provides industry leading underwriting services for your Credit Union along with dealer representation, loan decisioning, etc.

The KLA Full Service Program requires minimal overhead expense and your personnel expenses do not fluctuate with loan volumes. You control the level of risk through several loan policy parameters and credit scoring models.

Uniform Underwriting Guidelines permit KLA to remove the burden of underwriting from your staff so they can concentrate on daily Credit Union business. We are open when the dealers are open so you won’t miss a loan when members are shopping in the evening and on weekends.

Funding and post closing functions completed by KLA to include ACH funding, discounting of loan packets, charge back processing (early pay-offs, back-end cancellations, etc.), title research and dispute resolutions.

Dealership FinanceLevel the Playing Field Between Credit Union and Finance Office

For decades the greatest competitor for credit
unions has been the finance department at the dealership:

  • Greatest profit center for auto dealers
  • Under greater pressure to sell
  • Is typically the strongest sales department
  • Finance Managers are professionally
    trained sales people, paid to convert loans
    to lenders that make the most money for themselves and the dealership
  • Take control of your member’s financing
    by knowing when they are shopping with
    KLA’s Member Auto Center and pre-approve them
    prior to visiting the dealership

Let us know how you want your indirect lending program to operate and we will customize the perfect program


Preferred Platform with Highest Accessibility to Dealers

Our platform works with dealers' most widely used application submission platforms, DealerTrack and Route One, so we don’t miss an application.

Other indirect auto lending platforms geared toward credit unions are secondary portals that charge dealerships a monthly fee whether they generate loans for the credit union or not. Dealers typically only use these portals when they can’t get loans approved through their regular lenders or if the credit union is advertising a significantly lower rate than what their other lenders can offer; neither of which are good scenarios for your credit union!

Back Office Loan Processing

Quality assured processing and audit of loan documents, terms, and stipulations, to insure adherence to policy and procedures. A thorough suite of compliance products and ACH funding are standard.

Electronic Documents and eContracting

Documents are sent electronically at the time of funding. Data will be accessible in seconds which will save time and ensure greater success. Using electronic documents and eContracting will eliminate errors by requiring dealers to get docs and terms approved in advance.

Set Apart from the Competition

Three Cars

Access to More Dealers

KLA has a large network of dealers, which increases loan opportunities for your credit union and provides a smoother transaction for your members as they shop for their next vehicle.


No Monthly Access Fee

We do not charge our dealerships a monthly access fee to use our services as other credit union portals do, which makes them feel confident signing on with our programs
at no risk to them.


& Route One

Dealers submit apps to KLA on the same platform they use for their captive lender and other financial institutions. This means more applications and, more importantly, MORE CONTRACTS!


Simplicity of Use

KLA has an easy-to-understand, uniform program that dealers are quick to master and utilize. We also have a friendly staff who are always happy to help answer any questions that do arise.



Knowledge & Experience

Our underwriters, funders, and sales reps have years of experience in the business. We have a strong understanding of the local market and stay up-to-date on industry data and analytics.


The Right Incentives

KLA created a
program for dealers that rewards them for sending us the right applications. These incentives help to strengthen our credit union loan portfolios
as well as our dealer relationships

Shaking Hands

Dealer Sign-up Process

Our sales reps visit dealerships on your behalf and work hard
to continue to sign more dealers as we grow. They do a great job of representing KLA and the goals and values of our credit unions.


Credit Union Staff Training

We provide training on KLA's underwriting guidelines, loan
analysis software and information on each dealership in our network. We maintain great communication with our credit union partners.