HDFS is financed by operating cash flow, advances, and loans from Harley-Davidson, asset-backed securitizations, commercial paper, revolving credit facilities, senior subordinated debt, and redeemable preferred stock. HDFS also retains an interest in the excess cash flows from receivables and recognizes income on this retained interest. After the sale, HDFS performs billing and portfolio management services for these loans and receives a servicing fee for providing these services.