Company: CPSS
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001683168-25-001548
Chunk: 32

Company: CONSUMER PORTFOLIO SERVICES, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 32
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 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. 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”.

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 Indebtedness

We currently have and will
continue to have a substantial amount of outstanding indebtedness. At December 31, 2024, we had approximately $3,131.0 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. Our ability to make
payments of principal or interest on, or to refinance, our indebtedness will depend on our future operating performance, and our ability
to enter into additional credit facilities and securitization transactions as well as other debt financings, which, to a certain extent,
are subject to economic, financial, competitive, regulatory, capital markets and other factors beyond our control.

 18 

If we are unable to generate
sufficient cash flows in the future to service our debt, we may be required to refinance all or a portion of our existing debt or to obtain
additional financing. There can be no assurance that any refinancing will be possible or that any additional financing could be obtained
on acceptable terms. The inability to service or refinance