Company: CPSS
Filing Date: 2025-05-23
Form Type: 424B2
Source: 0001683168-25-003971
Chunk: 18

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-05-23
Form: 424B2
Chunk 18
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 31,
2005.

Our results of operations will depend on our ability to secure and maintain adequate credit and warehouse financing on favorable terms.

We depend on various financing
sources, including credit facilities, our securitization program and other secured and unsecured debt issuances, to finance our business
operations.

Historically, our primary sources
of day-to-day liquidity have been our warehouse credit facilities, in which we sell and contribute automobile contracts, as often as twice
a week, to special-purpose subsidiaries, where they are "warehoused" until they are financed on a long-term basis through the
issuance and sale of asset-backed notes. Upon issuance of the notes, funds advanced under one or more warehouse credit facilities are
repaid from the proceeds. Our current short-term funding capacity is $535 million, comprising two credit facilities, one with a maximum
credit limit of $200 million and the other with a maximum credit limit of $335 million. Both warehouse credit facilities have a revolving
period during which we may receive advances secured by contributed automobile contracts, followed by an amortization period during which
no further advances may be made, but prior to which outstanding advances are due and payable. See “Management’s Discussion
and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Liquidity” in our
Annual Report.

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Our access to financing sources
depends upon our financial position, general market conditions, availability of bank liquidity, the bank regulatory environment, our compliance
with covenants imposed under our financing agreements, the credit quality of the collateral we can pledge to support secured financings,
and other factors beyond our control. If we are unable to maintain warehouse or securitization financing on acceptable terms, we might
curtail or cease our purchases of new automobile contracts, which could lead to a material adverse effect on our results of operations,
financial condition and liquidity.

Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our existing senior indebtedness.

We currently have and will
continue to have a substantial amount of outstanding indebtedness. At December 31, 2024, we had approximately $3,131 million of debt outstanding.
Such debt consisted primarily of $2,594.4 million of securitization trust debt, and also included $410.9 million of warehouse lines of
credit, $99.2 million of residual interest financing debt and $26.5 million in subordinated renewable notes. At March