Grow Your Auto Loan Portfolio with the Right Indirect Lending Partner

Indirect lending can be a powerful tool for expanding your auto loan portfolio, reaching new members, and strengthening dealer relationships. But lasting success depends on finding the right partner. Whether you’re just starting out or exploring new options, asking the right questions upfront can save you costly challenges down the road.

Four Key Questions to Ask

1. Do They Understand Your Credit Union?

Every credit union has unique goals, members, and risk preferences. Look for a partner who invests the time to learn your market and adapt to your lending philosophy instead of offering a generic program. Ask about their dealer network—where they have established relationships, how those align with your membership field, and whether their underwriting flexibility matches your appetite for risk.

2. How Will They Communicate and Provide Transparency?

Strong communication keeps programs running smoothly. Find out how they’ll keep you updated on applications, approvals, and dealer feedback. Will you have a dedicated contact? What digital tools or portals will your team use? Transparency matters too—ask about their reporting capabilities, how often you’ll receive updates, and whether reports can be customized to track the metrics that matter most to you.

3. How Do They Manage Risk and Protect Your Portfolio?

Charge-offs and delinquencies are part of lending, but the way they’re managed makes a difference. Confirm that your partner’s underwriting policies align with your own. Also, discuss how indirect loans might impact your overall portfolio mix and risk profile. The right partner will help you plan ahead to keep your portfolio healthy and diversified.

4. What’s Their Track Record and Reputation?

Ask for references from other credit unions—particularly those similar in size or market—to get a clear picture of what it’s like to work with them. A proven history of performance and strong industry relationships can give you confidence in your choice.

Find a Partner Who Works Like Part of Your Team

Selecting an indirect lending partner isn’t just about pricing or volume. It’s about finding someone who aligns with your strategy, builds trust, and consistently delivers results for your members.

Why KLA?

At KLA, we believe indirect lending should feel like a seamless extension of your credit union—not another program to manage. We take the time to understand your goals, your members, and your market. With a trusted dealer network, flexible underwriting, clear communication, and transparent reporting, we provide the tools and support you need to grow confidently.

Whether you’re launching a new program or reevaluating an existing one, our experienced team is here to help you maintain a balanced portfolio, strengthen member satisfaction, and run your lending program with ease.

Contact Robert Brant at rbrant@kla.us.com to learn more about how we can help!