Is Commercial Distribution Finance (CDF) working toward cornering the powersport industry, despite a less-than-clear fate for 2016?
CDF announced today that it has struck yet another partnership to exclusively provide inventory financing, this time for snowmobiles, all-terrain vehicles, and side-by-side manufacturer Arctic Cat Inc.’s (ACAT) North American dealer inventory.
“We’re consolidating our North American dealer-inventory financing under CDF because of their expertise in our industry and their leading technology solutions,” Chris Eperjesy, chief financial officer of Arctic Cat, said in a press release.
Throughout December, the company announced the extension of its joint venture, Polaris Acceptance, which provides floorplan financing to Polaris dealers, as well as the formation of a new partnership between Royal Enfield and CDF parent company, GE Capital.
In July, Jeremy Jansen, president of the motorsports group at CDF said that following a 12% increase in dealer financing volume through June, the company expects additional growth into 2016.
“Industry growth is coming from a steadily improving economy and from innovative product offerings from our manufacturing partners, attracting new riders,” Jansen said in a release.
However, CDF’s fate remains in flux, following GE Capital’s decision to sell its global Commercial Distribution Finance, North American Vendor Finance, and Corporate Finance platforms — under which Commercial Distribution Finance falls — to Wells Fargo & Co in October. The sale is expected to be completed in the first quarter of 2016.
