EXHIBIT 10.1
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                         GREENWICH CAPITAL MARKETS, INC.
                               600 STEAMBOAT ROAD
                          GREENWICH, CONNECTICUT 06830


                                                      May 9, 1996


Proprietary and Confidential; Not to be Distributed Outside of ASTA Funding and
its Affiliates.

Mr. Gary Stern
President
ASTA Funding, Inc.
210 Sylvan Avenue
Englewood Cliffs, NJ 07632

Dear Gary:

Greenwich Capital Markets, Inc. ("Greenwich") is pleased to provide a committed
forty-eight month term securitization program to ASTA Funding, Inc. (the
"Company") with respect to its subprime auto receivables subject to the terms
and conditions set forth in the Summary of Terms attached hereto as Exhibit A
and in Greenwich's standard form securitization agreement substantiallv in the
form attached hereto as Exhibit B (collectively, this "Commitment").

This Commitment sets forth the entire agreement of Greenwich and the Company
with respect to the subject matter hereof and supersedes all prior discussions
and correspondence. This Commitment will be governed by and construed in
accordance with New York law without regard to its conflicts of laws provisions.
To the extent with respect to any particular securitization to be effected
pursuant to this Commitment, there is any inconsistency between the terms of
this Commitment and any purchase agreement entered into between the Company and
Greenwich with respect to such securitization, the terms of such purchase
agreement shall govern.

If the terms of this Commitment are acceptable to the Company, please indicate
your agreement to be bound by the provisions of this Commitment, by executing
this Commitment in the space provided below. Upon your execution below, the
Company shall be deemed hereby to appoint Greenwich as its securitization agent.

                                            Very truly yours,

                                            /s/ Peiti Tung
                       
                                            Peiti Tung
                                            Executive Vice President  Accepted
Accepted and agreed:

ASTA Funding, Inc 


By: /s/ Gary Stern 
    --------------------
    Gary Stern
    President                                                         [Seal]
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                                                                       Exhibit A


             SUBPRIME AUTO RECEIVABLES SECURITIZATION COMMITMENT
                                Summary of Terms
                                   May 9,1996


Purchase/Placement
Commitment:              Greenwich's Commitment is based on securitizations of
                         the Company's sub-prime automobile and light duty truck
                         receivables (the "Receivables") in privately-placed
                         transactions (each, a "Securitization"). Greenwich
                         will, in its discretion, either place, as agent, or, if
                         it can not so place, purchase at an agreed upon price,
                         the Company's unregistered securities, unless otherwise
                         agreed by Greenwich and the Company.


Term of the
Commitment:              Greenwich's Commitment is for forty-eight months from
                         the date hereof, subject to the terms contained herein.

Commitment Fee:          1.25% multiplied by the amount, if any, equal to $200
                         million less the securities purchased or placed by
                         Greenwich by the end of the forty-eight month term,
                         payable within ten business days of the date on which
                         such term ends; provided, however, that no Commitment
                         Fee will be due Greenwich if: (a) Greenwich securitizes
                         the lesser of (i) $200 million of the Company's
                         Receivables within the forty-eight month term or (ii)
                         100% of the Company's Receivables acquired or otherwise
                         held in inventor, during the forty-eight month term
                         (such lesser amount the "Committed Amount") or (b) the
                         Company has not securitized the Committed Amount
                         through Greenwich during the forty-eight month term due
                         to the absence for a six consecutive month period of an
                         active secondary market for securities backed by assets
                         similar to the Receivables which has prevented
                         Greenwich from securitizing the Company's Receivables.

Purchase Placement
Fees:                    As compensation to Greenwich for its Securitization
                         Commitment. the Company will pay to Greenwich, at the
                         closing of each Securitization. the applicable fees, as
                         set forth below:


                         A). For transactions up to $25 million


                                                               Fee           
                                  Security             (As % of Par Amount) 
                                  --------             -------------------- 
                               Investment Grade                1.25%         
                             Non-investment Grade              4.00%
                                                 


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                         B). For transactions $25 million or larger

                                                                Fee            
                                  Security              (As % of Par Amount)  
                                  --------              --------------------  
                               Investment Grade                 1.00%         
                             Non-Investment Grade               4.00%         
                                                        

Conditions
Precedent:              The purchase and/or placement by Greenwich of the
                        Company's securities will be conditioned upon the
                        following:

                        (i)   The maintenance by the Company of a warehouse
                              finding credit line at BA Business Credit or
                              another similar lender such that each
                              Securitization during the first six months of this
                              Commitment will be at least $20 million and each
                              Securitization thereafter will be at least $25
                              million.

                        (ii)  Execution of definitive documentation relating to
                              the issuance of the securities in form and
                              substance satisfactory to Greenwich;

                        (iii) Receipt of legal opinions customary in rated
                              asset-backed securities transactions which are
                              satisfactory to Greenwich;

                        (iv)  The execution by the Company of Greenwich's
                              standard form securitization agreement
                              substantially in the form attached hereto as
                              Exhibit B (the "Securitization Agreement")
                              relating to Greenwich's purchase of the securities
                              pursuant to the Commitment. In the event Greenwich
                              determines its sole discretion with respect to any
                              Securitization that Greenwich will place the
                              related securities as placement agent of the
                              Company rather than purchase the securities as
                              principal from the Company for resale, the
                              Securitization Agreement will be modified
                              accordingly;

                        (v)   No change of control shall have occurred with
                              respect to the Company or any of its subsidiaries
                              or affiliates. "Change of control" means for this
                              purpose that neither Gary Stern nor members of his
                              family then own, directly or indirectly, the
                              largest block of voting common stock of the
                              Company, its subsidiaries and affiliates;

                        (vi)  No material adverse change shall have occurred in
                              the financial or operating condition, business or
                              prospects of the Company or any of its
                              subsidiaries or affiliates; and

                        (vii) The performance of the Company's portfolio of auto
                              receivables shall not have materially
                              deteriorated.

                        In addition, Greenwich reserves the right to conduct
                        continuing due diligence of the Company, its affiliates,
                        directors, officers, employees and significant
                        shareholders and, to the extent Greenwich at any time
                        discovers any new or previously existing but
                        undiscovered event or condition, which in Greenwich's
                        sole discretion materially and adversely affects (a) the
                        expected performance of the receivables, (b) the
                        condition (financial or otherwise) of the Company or its
                        affiliates, or (c) the ability 


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                        of the Company, Greenwich or its affiliates to fulfill
                        its or their obligations under the Commitment, Greenwich
                        shall have no firther obligation under the Commitment.

Representations 
And Warranties:          The Company will make, as of the cut-off date for the
                         Securitization, customary corporate- and
                         Receivables-related representations and warranties in
                         form and content as may be required by Greenwich, a
                         rating agency or credit enhancement provider.

Expenses:                The Company shall reimburse Greenwich for all
                         out-of-pocket expenses associated with the transaction
                         as incurred, including without limitation Greenwich's
                         costs and expenses for its due diligence of the
                         receivables underlying the securitization, legal and
                         rating agency costs and expenses incurred in connection
                         with the preparation and negotiation of
                         Securitization-related documentation (including the
                         fees and expenses of Greenwich's counsel), registration
                         fees (if applicable), upfront and ongoing custodial and
                         trustee fees and expenses, bond insurer premiums, fees
                         and expenses (if applicable) and accountants' comfort
                         letters, whether advanced by the Company or by
                         Greenwich. Where possible, Greenwich will attempt to
                         negotiate fee and/or expense caps on behalf of the
                         Company.


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