The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

E.R. Receivables and Greenwich Capital Markets Form Strategic Alliance

21 August 1998

Asta Funding's Subsidiary E.R. Receivables and Greenwich Capital Markets Form Strategic Alliance to Fund Portfolios of Distressed Receivables

    ENGLEWOOD CLIFFS, N.J.--Aug. 20, 1998--Asta Funding, Inc. today announces that E.R. Receivables Corp., L.L.C., a wholly owned subsidiary of Asta, along with Greenwich Capital Markets, Inc., a Registered Broker Dealer, anticipate funding the initial purchase of bulk-flow packages of distressed consumer receivables pursuant to a receivables loan and security agreement entered into among E.R. Greenwich and other parties in June, 1998. The funding will be made available to a third-party who will then purchase the distressed receivables at a discount. Both E.R. and Greenwich will act as co-lenders pursuant to the agreement and E. R. will share in the profits, if any, of such third-party. The funds used by E.R. will be made available from Asta Group, Incorporated, an affiliate of Asta Funding.
    Gary Stern, President and Chief Executive Officer of Asta Funding stated "E.R. Receivables was formed to aggressively pursue the purchase of distressed consumer receivables. We believe that the alliance with Greenwich demonstrates Asta Funding's continuing expansion into the distressed consumer receivables marker. Asta Funding is most enthused with our association with Greenwich Capital Markets, a leader in innovative funding."
    Asta Funding, Inc. is a sub-prime automobile lender located in Englewood Cliffs, New Jersey. Asta is currently licensed in 10 eastern states. The company has expanded its strategic focus to include distressed consumer receivable purchases.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Although, Asta Funding, Inc. believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurances that its expectations will be realized. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from Asta Funding Inc.'s expectations. Factors that could contribute to such differences include those identified in Asta Funding Inc.'s most recent Registration Statement on Form S-I, its Form 10-KSB for the year ended September 1997 and Form 10-Q for the Quarter ended December 31, 1997; and those described from time to time in Asta Funding Inc.'s other filings with the Securities and Exchange Commission, news releases and other communications.