We had a simple mission: Contact all known national and regional powersports lenders (including brokers) and ask them a series of questions. Then post their info on our website so you could shop for new lenders.

Some companies replied quickly. Others, like Help Me Ride, Medallion Bank and Sparta Commercial Services, never responded to our inquiries. Another bank, one popular with dealers in the West, flatly told us that it was not interested in promoting its powersports business, even though several dealers have praised the bank profusely.

Banks that once offered powersports loans told us they no longer do, including KeyBank, First Federal and Western Funding Inc.

So we’ve posted below what we could find. Hopefully, we’ll be able to add more entries in the months ahead. If you have any suggestions, please e-mail them to aredwine@dealernews.com.

Access Equipment & Financing LLC
305 Trade Square S.E., Suite 2
Troy, Ohio 45373
Phone: 866-892-0315
Fax: 937-552-9484
http://accessequipmentfinancing.com
Info Last Updated: July 29, 2009

Types of units financed: All types and brands, new and used up to 7 years old. Program available only to homeowners.
States in which it does business: Arizona, California, Florida, Georgia, Iowa, Indiana, Kentucky, Maine, Michigan, Minnesota, Mississippi, Missouri, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virgina, Washington, Wisconsin and West Virginia.
Number of dealers signed up: 765.
Setup costs: None.
Lowest FICO score accepted: 650.
Range of loan amounts: $1,000 to $15,000.
Range of down payments required: Usually none.
Range of term lengths: 24 to 60 months, depending on the financed amount.
Range of interest rates: 11.99 percent to 15.99 percent, fixed rates.
Discount fee charged: None.
Other fees: Special program fees only for participating dealers.
Other: Loan amounts are based on price invoices. Access Equipment pays dealers a lump some of participation based on the invoiced amount. There is no recourse back to the dealer. Loan stipulations vary per applicant. Loans do not require full-coverage insurance. Access Equipment communicates with dealers through phone and fax, and via the Web. The company claims that it typically takes 30 minutes for it to deny or accept an application. It is open Monday through Friday, 9 a.m. to 5 p.m.

F&I Smart (ARI F&I Services LLC)
4017-A State St.
Schenectady, NY 12304
Phone: 877-863-5607
info@powersportsloan.com
www.powersportsloan.com
www.arinet.com
Last Updated: July 29, 2009

Note: ARI, which is primarily known for its PartSmart electronic parts catalogs, formed ARI F&I Services LLC this past spring to acquire the assets of Powersports Outsourcing Group (PSOG) LLC, which owed money to ARI. PSOG had been doing business with dealers in the Northeast for more than a decade. It claims to be a broker for more than a dozen lenders, and as its name implies, it handles all F&I services for its dealers. The company’s F&I Smart is just getting started, but we obtained the following info from the program’s managing director, Mark Taylor, who was the former director of PSOG.
States in which it does business: Currently five states in the Northeast, but F&I Smart will roll out nationally.
Number of F&I Services employees: Six, though Taylor says the company is ramping up.
Number of dealerships: PSOG brought 100 dealers to ARI. Because ARI itself provides services to 20,000 dealerships in various industries, the company looks to expand this number.
Number of lenders: About 13, down from more than 20 just two years ago. Two or three of the lenders are subprime.
Setup costs: None.
Commission structure: F&I Smart’s standard program is a 50/50 split of the profit on loan placement and/or after-sale products that the company sells for the dealer.
Fees: $25 per funded transaction.
F&I products offered: A wide variety from multiple vendors.
Typical F&I profits per unit: “For the last 12 years, we have averaged over $600 profit per contract for our dealers,” Taylor says.
Other: F&I Smart speaks to each customer over the phone. It also communicates via fax and the Internet. Taylor says customers with great credit are usually approved in less than an hour. Others may take a day or two. F&I Smart is open Monday through Friday, 9 a.m. to 6 p.m. EST, and Saturday, 10 a.m. to 4 p.m. Taylor says the company plans extending the hours as it expands nationally.

HelpMeRide Inc.
402 Main St., Ste. 100
Metuchen, NJ 08840 (address listed by Dun & Bradstreet)
Phone: 732-205-1301
lending@helpmeride.com
www.helpmeride.com
Last Updated: July 29, 2009

HelpMeRide Inc. did not respond to our survey. Its website indicates that it does business on a national level and will finance streetbikes, dirtbikes, PWC, ATVs and scooters. Dealers report that HelpMeRide charges an 17.99 percent discount fee and a $399 processing fee with each loan. Loan terms are a maximum of 48 months. Customers also must buy an extended warranty and GAP insurance. Click here for additional information. Former Dealernews columnist Steve Zarwell wrote about the company in our October 2008 issue. (Click here for that article.)

iNet Recreational Finance & Insurance
4202 Spicewood Springs Road, Suite 108
Austin, TX 78759
Phone: 888-838-5035
Fax: 877-404-6478
info@inetrec.com
www.inetrec.com
Info Last Updated: July 29, 2009

Note: iNet is not a direct lender, but a broker for three lenders.

Types of units financed: Only cruisers with engines at least 750cc in size, new and used going back 10 model years.
States in which it does business: 48 states.
Number of dealers signed up: About 1,000, with about 300 being active.
Setup costs: None.
Lowest FICO score accepted: 580.
Range of loan amounts: $5,000 to $60,000.
Range of down payments required: Usually 10 percent.
Range of term lengths: Up to 96 months.
Range of interest rates: 10.95 percent to 18.95 percent.
Maximum amount advanced: 110 percent (120 percent for Harleys) of manufacturer’s invoice cost, plus money for TT&L and qualifying add-ons like GAP, extended warranties, etc.
Discount fee charged: None.
Other fees: Charges processing fees to the consumer, but the fees don’t go through the dealership.
Stipulations: Copy of the customer’s ID. For the self-employed, the last two years of tax returns with all schedules; for the employed, last two years of W-2’s and a paycheck stub within the past 30 days.
Other: iNet says it has been in business since 1999 and has been doing motorcycle loans for about four years. Loans are based on the manufacturer’s invoice cost. If the dealer won’t divulge this info, the loan is based on the NADA value of the previous year’s model.

All loans require full-coverage insurance. iNet is an insurance agency as well. “We offer insurance on the bikes, and we pay the dealerships a referral fee,” says iNet president Michael Jones. Customers can choose different insurance.

iNet funds everything with wire transfers. “We do a volume that the dealers can’t do, so we do a lot of packaging and are able to get more deals done than the average dealership can,” Jones claims. About half the company’s business is done through dealers; the other half is consumer-direct. There is no recourse back to the dealer, except for dealer fraud.

iNet communicates with dealers via fax. It also has an online system with which dealers can watch their applications go through the process. Loan decisions can be as fast as two hours or as slow as three days. INet is open Monday through Saturday. It closes at 5:30 p.m. Central Time on weekdays, 3 p.m. on Saturday.

Dealership contracts contain a noncircumvent clause that disallows the dealer from using INet’s three lenders directly for 24 months.

INet offers a full outsourcing option. “We have lots of dealers who simply turn their F&I department over to us,” Jones says.

MB Financial Bank, N.A.
Indirect Lending
800 W. Madison St.
Chicago, IL 60607
Phone: 847-653-2365
Fax: 847-653-0444
www.mbfinancial.com/Business/IndirectLending/tabid/131/Default.aspx

Types of units financed: Motorcycles, typically cruisers or touring models, of the following brands: Harley-Davidson, Ducati, Triumph, BMW, MV Agusta and KTM. About half the bikes financed are used. The bank will go back as far as NADA does (currently 1995), as long as the unit has an average retail value of at least $6,000.
States in which it does business: MB Financial will consider any new franchised dealer within the continental U.S. that carries the models it supports. The bank has about 500 dealers in 46 states. “We do not look for a minimum amount of deals per month to consider a dealer active,” the bank’s Charles Schaefer says. “We believe the dealer should place the contract where they get the best value, whether that is service, rate, term, advance amount, or dealer reserve amount. As long as we are consistently receiving contracts, we count a dealer as active.”
Setup costs: There is a $250 Dealer Application Fee. “This is a one-time fee that most dealers recoup within the first few contracts placed with us,” says Schaefer.
Lowest FICO score accepted: “Typically, our niche is in A and B paper,” Schaefer says. “We manually underwrite every loan; therefore, no consumer is rejected simply based on score.”
Range of loan amounts: The loan amount should typically be at least $6,000, but the bank might make exceptions in cases with large down payments.
Range of down payments required: The required down payment usually depends on the customer’s credit or the term requested. MB Financial does offer no-money-down options.
Range of term lengths: Usually 24 to 96 months, depending on the product, the customer’s credit-worthiness, and/or the deal parameters.
Range of interest rates: Dealers can obtain rates as low as 4.99 percent APR. All loans are simple interest loans.
Discount fee charged: None. “Discount fees are typically charged on subprime customers,” Schaefer notes. “Since that isn’t our niche, we currently do not charge one.”
Other fees: None.
Maximum amount advanced: For new units, MB Financial bases the loan amount on MSRP; for used units, it bases the loan amount on NADA Average Retail. “Advance amounts really depend on the strength of the customer,” Schaefer says. “We do not have set advance levels based solely on credit. We have advanced as high as 120 percent of MSRP.”
Stipulations: ”Unless we have requested stipulations on a specific deal,” Schaefer says, “our funding requirements are the typical documents. We do provide every dealer with a funding checklist. We also highly recommended that the documents be sent via our secured e-mail due to the speed, cost savings, and tracking options this service can provide. MB makes every effort to fund loans no later than 24 hours after the completed loan package is received. Loans are funded via ACH at no charge.” MB Financial requires the collateral to have full-coverage insurance for the life of the loan.
Participation: The bank usually offers a 70/30 split reserve with traditional reserve calculation. Dealer reserve is paid out in one lump sum per month. The bank usually has a 90-day chargeback period, so there is recourse back to the dealer.
Finder’s fee paid to dealer: Finder’s or flat fees depend on the loan amount and product. They range from $50 to $250.
Other: Dealers are not required to have a reserve account, but as a full-service commercial bank, MB Financial does have dealers who are part of its Premier Dealer Group. This entitles them to additional benefits due to their overall relationship.

MB Financial employees are available by phone, both work and cell, to answer dealers’ questions. Applications are submitted via fax, and the bank’s decisions are returned via fax and e-mail. On average, all decisions on a completed application are done in 15 to 20 minutes. The bank also recently signed an agreement with AppOne to offer an online application and contract process, which will be available soon.

The bank is open Monday, 9 a.m. to 6 p.m. CST; Tuesday through Thursday, 9 a.m. to 7 p.m.; Friday, 9 a.m. to 6 p.m.; and Saturday, 10 a.m. to 5 p.m.

”MB has been building relationships with motorcycle dealers for over a decade,” Schaefer says. “Our focus on lifestyle and not just motorcycles has allowed us to grow over the years. Our goal is quite simple: We want to help dealers move more iron while making more money. MB offers superior service along with the most competitive terms. Plus, MB is a full-service bank. That means that besides acting as your retail financing outlet, you also have access to an experienced MB business banker who can provide you with the financial tools you need to support your business.”

Medallion Bank
1100 E. 6600 South, Ste. 510
Salt Lake City, UT 84121
Phone: 866-688-6983
Toll-Free Fax: 888-730-5032
Optional Fax: 801-284-7078
mrvapps@medallion.com
www.medallionbank.com
Last Updated: July 29, 2009

Medallion did not respond to our survey. Its website reads as follows: “Your best source for nonprime motorcycle loans. Medallion Bank provides financing to bank-approved dealers across the country. We are committed to helping you secure the loans your customers need. As the nation’s leading nonprime recreation lender, we offer competitive rates and pay up to 2 percent participation on every loan. Medallion Bank specializes in financing customers with past credit problems, including bankruptcy.
Medallion Bank will consider the following collateral: V-Twin, Metric Cruiser, and Sport Cruisers listed in the NADA guide (650cc or larger). Sportbike “bullet bikes,” dirtbikes, scooters, and ATVs will not be considered. We are a nonrecourse lender with no pre-payment penalty for early payoffs. We finance loans ranging from $5,000 to $40,000 on collateral 10 years old or newer.”

Merrick Bank
Recreation Lending
P.O. Box 1500
Draper, UT 84020
Phone: 888-545-3888
Fax: 801-545-6123
www.merrickbank.com

Types of units financed: Only cruisers and touring bikes listed with values in the NADA guide. Usually requires a minimum engine displacement of 750cc to 800cc. New and used going back 10 model years.
States in which it does business: All states except Alaska, Arizona, Hawaii, Montana, Oklahoma and West Virginia.
Setup costs: None.
Lowest FICO score accepted: 580.
Range of loan amounts: $5,000 to $30,000.
Range of down payments required: Down payment is a factor of sales price and must be a minimum of 10 percent cash or trade equity.
Range of term lengths: 60 to 96 months.
Range of interest rates: 13.95 percent to 17.95 percent.
Discount fee charged: None.
Other fees: None.
Maximum amount advanced: For new: 110 percent (120 percent for Harleys) of net invoice, plus taxes, title, license, qualifying hard adds (refundable warranties, GAP, credit life, disability), with Merrick Bank as the registered lien holder.
For used: 110 percent (120 percent for Harleys) of clean trade wholesale plus taxes, title, license, qualifying hard adds (refundable warranties, GAP, credit life, disability), with Merrick Bank as the registered lien holder. When there is not a NADA clean trade value, 65 percent of the suggested list will be used for units up to one year old, with a 5 percent decrease for every additional year to determine clean trade value.
For new noncurrent prior model year: 105 percent (110 percent for Harleys) plus TT&L, service contracts, warranties, credit life, disability, GAP.
Stipulations: Proof of income, references, copy of driver’s license and other items outlined on bank’s funding checklist, or that may be specific to a certain application.
Other: Merrick pays participation. Dealers are paid a lump sum based on the amount financed (usually 2 percent or 3 percent) at the time of funding. If the loan is paid off or the collateral repossessed within 90 days of funding, the entire participation is due back to the bank. All loans require full-coverage insurance with a maximum deductible of $500. Merrick communicates with dealers via phone and fax. Merrick says the time it takes to decide on loans varies during the year, but typically the worse-case scenario is eight to 10 hours, and often two hours outside of the peak season (middle of April through August). Merrick is open Mondays through Fridays, 8 a.m. to 5 p.m. MST, and is closed on bank-recognized holidays. The program rate sheets and funding checklists provide additional details. They can be obtained by calling 888-545-3888.

Sparta Commercial Services
462 Seventh Ave., 20th Floor
New York, NY 10018
Phone: 800-882-0778
Fax: 212-239-2799
headquarters@spartacommercial.com
www.spartacommercial.com
Last Updated: July 29, 2009

Sparta Commercial Services did not respond to our survey, but the website listed above provides a lot of information about what it offers.

State Farm Bank
Phone: 877-734-2265
www.statefarm.com
Last Updated: July 29, 2009

State Farm Bank does not off a dealer program, but customers can contact their local agent for a motorcycle, ATV, PWC or snowmobile loan. Click here to check out some of the bank’s terms. The minimum loan amount is $5,000 for terms ranging from 12 to 36 months. The minimum monthly payment is $100 for all terms. The amount advanced for new units can be up to 100 percent of invoice. The amount advanced for used units can be up to 100 percent of the trade-in value. Direct your customers to this link to find their nearest agent. Or they can call the number listed above.