1071004--3/29/2007--TRIAD_FINANCIAL

related topics

{debt, indebtedness, cash}

{loan, real, estate}

{condition, economic, financial}

{acquisition, growth, future}

{loss, insurance, financial}

{regulation, government, change}

{financial, litigation, operation}

{customer, product, revenue}

{personnel, key, retain}

{capital, credit, financial}

{competitive, industry, competition}

{system, service, information}

{property, intellectual, protect}

{stock, price, operating}

Our ability to execute securitization transactions, and the cost of and liquidity obtained from them, is dependent on our ability to obtain financial guaranty insurance policies to support these transactions. A loss of contractual servicing rights could have a material adverse effect on our business. We may not be able to generate sufficient operating cash flows to meet our operating expenses. Defaults and prepayments on contracts purchased or originated by us could adversely affect our results of operations and cash flows. Failure to implement our business strategy could adversely affect our operations. There is a high degree of risk associated with non-prime borrowers. We are subject to general economic conditions beyond our control. Adverse general economic events, including periods of economic weakness, could have a material adverse impact on our business. Geographic concentrations of our contracts may adversely affect payments on the contracts. In our direct channel, we depend on a number of third parties and the Internet to provide us with applications, and a decline in applications from these sources could result in a decrease in contract originations. Our business is highly seasonal which may cause our results of operations and cash flows to fluctuate from quarter to quarter. Wholesale auction values may impact our profitability. Our customers may not maintain adequate insurance on our collateral, which could lead to greater losses. Our profitability may be directly affected by the level of and fluctuations in interest rates. Our inability to recruit or retain senior management or other qualified personnel could have an adverse impact on our operations. The auto finance business is highly competitive. Regulatory requirements may have a material adverse effect on our business, financial condition or operating results. Various laws and other factors may limit the collection of payments on our contracts and repossession of the vehicles. We are parties to litigation matters that could adversely affect our financial condition, results of operations and cash flows. We may pursue strategic acquisitions and expansion opportunities, which could have an adverse impact on our business. Our financial products and services are complex, depend on a myriad of complex networks and technologies and may be subject to software or hardware errors or failures that could lead to an increase in our costs, reduction of our revenues or damage to our reputation. If we are unable to protect our intellectual property adequately, we may lose a valuable competitive advantage or be forced to incur costly litigation to protect our rights. Our substantial indebtedness could adversely affect our business and results of operations. Our indenture governing our notes and our warehouse and residual facilities restrict our operations. We will continue to require significant amounts of cash to fund our operations.

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1071004--3/29/2007--TRIAD_FINANCIAL_CORP