Powersports manufacturer Polaris Industries Inc. and Commercial Distribution Finance (CDF), said on Monday they agreed to continue their joint venture, Polaris Acceptance, to provide floorplan financing to Polaris dealers.
Polaris Acceptance (PA) was formed in 1996. The old partnership agreement was to expire in February of 2017, according to a company statement. The new agreement will extend the terms of the agreement between Polaris and CDF — a division of GE Capital — through 2022.
“This extension signals our commitment to offer a source of continued dealer financing stability through 2022,” said Scott Wine, Polaris chief executive. “PA will remain a competitive tool in our offering to dealers, while supporting Polaris’ working capital, liquidity, and balance sheet strength,” he said in a written statement.
Last week, CDF added Royal Enfield as its newest OEM partner, effective Jan. 1. The company is also prepping its transition to Wells Fargo management — part of a larger, $32 billion deal made between Wells Fargo and GE Capital in October — scheduled for the first quarter of 2016.
Commercial Distribution Finance provides financing to more than 40,000 dealers globally, which totaled to $46 billion in financing at yearend 2014. On the heels of a 12% increase in dealer financing volume through June, CDF said it expects additional growth into 2016.