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14 ‘PowerCompanies’ Flying Under the Radar

  • Natalie Mattila
  • July 26, 2017
  • 0

The powersports finance industry is growing at a steady pace as more companies enter the space, but sometimes we have a tendency to focus on the growth of larger institutions and captives, leaving smaller startups in the shadows.

From insurance providers to refinanciers to lender aggregators to startup lessors, these under-the-radar startups are infiltrating the powersports finance and aftermarket space. Take a look at our list of 14 “PowerCompanies” you’ll want to keep your eye on:

For more companies like this, visit our PowerDirectory — a dynamic list of the players in the powersports space — here.

1. Trackbikez

Founded in 2014, northeastern Ohio-based Trackbikez is a hub for motorcycle and trackday enthusiasts including track bike and sportbike leasing, engineering, and media services.

The startup — operating in stealth mode — offers leasing opportunities for trackday use and works with motorcycle owners who want to add their bike to its growing database of bikes to lease.

The company also offers photography, videography, web design, IT support, program management, and social media assistance, according to its website.

2. Pushsky Co.

While not located in the United States, it’s worth noting Pushsky’s unique business model. The Morogoro, Tanzania-based company provides motorcycles to fully vetted and trained drivers through a drive-pay-own lease model. The company offers a 12-month repayment period “to allow our good drivers to achieve ownership stage as soon as possible,” according to its LinkedIn.

Not much is known about the stealth company, as its website is still under construction, but it appears the startup helps taxi motorcycle drivers pay-off their bikes.

3. Concierge Financial Services

Frankfort, Ill.-based Concierge Financial Services, founded in 2013, is a national finance and insurance marketing firm that focuses on auto, motorcycle, marine, RV, and airplane refinancing. The company acts as an aggregator, connecting consumers with its marketplace of lender partners to obtain lower-interest financing.

Concierge is structuring a deal with a “custom motorcycle manufacturer” to help the OEM secure financing partners, Chief Executive and Founder Thomas Domin told Powersports FinanceToward the end of 2016, Concierge Financial was approached by the manufacturer, which lacked financial partners, Domin said.

“They make motorcycles that cost between $130,000 and $150,000,” he said. “But they don’t have financing opportunities.” While Domin declined to offer the motorcycle-maker’s name, he said the OEM makes 50 motorcycles per year.

4. PayLow Rate

Detroit, Mich.-based PayLow Rate is an online marketplace that pairs consumers with lenders for direct-to-consumer auto and powersports financing.

While it appears PayLow Rate’s bread-and-butter offering is for auto lenders, it also offers motorcycle and RV services, according to its LinkedIn page.

“PayLow Rate is helping customers discover auto financing on their own terms,” according to its website. “We’ve created a marketplace that allows for direct-to-consumer financing that is fast, simple and secure — all in the comfort of your own home. PayLow Rate strives to be a market disruptor by giving power back to the consumer through our ‘Real Rate Check’ process.”

5. Revio

Founded in 2013, Revio — a Techstars Mobility 2015 company — supplies the powersports industry with electronic safety and security products. Among the products are connected motorcycle tracking devices for theft detection and GearBrake modules, which detect deceleration in a vehicle and automatically illuminate the brake lights. The platform is built on an open API that allows third-party developers and manufacturers to create custom integrations.

“We are also working with Munich Re and American Modern Insurance Group to create a custom insurance solution,” according to its website.

6. RTO Cycles

RTO Cycles is a stealth startup that offers low-credit lease-to-own financing for new and used motorcycles.

“Our simple lease-to-own program with no credit check and affordable payments will let you ride today and let you own it very soon,” the company said on its website. “We have plans for everyone, no one’s denied, so fill out our forms then get out and ride.”

7. Sled Insure

Sled Insure, a snowmobile insurance agency, plans to launch Powersports Insure by the end of the summer, to meet rising demand for coverage on all powersports vehicles, Corbett Godwin, a licensed broker with the company, told Powersports Finance.

The Gloversville, N.Y.-based agency launched Watercraft Insure in early June, specializing in the financing of personal watercraft, pontoons, boats, and yachts.

“We started with Sled Insure, and then branched off and got into more states and more states,” Godwin said. However, “just because we had the name Sled Insure, [consumers] didn’t realize we were focused on all toys. We had to redirect name of it, which led us to launch the Watercraft Insure website.”

Similarly, Powersports Insure will be yet another separate website, and will be focused on the insurance of motorcycles, ATVs, and other recreational vehicles. The company operates its snowmobile and watercraft insurance in 27 states, but aims to expand nationwide in the near future, he said.

8. Riders Share

Riders Share — a peer-to-peer motorcycle rental company — is trying to help consumers offset their monthly loan or lease payments and subsequently lower the company’s delinquency rates, Co-Founder Guillermo Cornejo told Powersports Finance in February.

Based in Orange County, Calif., the service offers a listing of individually-owned bikes for rent, and a way for consumers to post their motorcycle for daily or weekly rental. The service is available to consumers 25 years or older, and riders must have at least three years’ driving experience and a verified motorcycle license.

Riders Share currently operates a consumer-to-consumer model, but the company plans to shift into a business-to-consumer model by yearend, Guillermo said, meaning Riders Share is looking to build up its dealer and lender relations.

“In the carsharing world, some of the carshare companies are known to have captive finance lenders to sign up customers to help them make their loan payments,” which is what Riders Share hopes to set up, Guillermo said.

The motorcycle owner sets the daily rental price for their listing, and Riders Share takes a 30% cut, and charges a $20 transaction fee. The motorcycle rental company works with three Southern California-based dealerships, including Indian Motorcycle of Orange County.

9. Revstop.com

Revstop.com is a San Diego startup that is aiming to be the first completely online powersports dealer. The website allows consumers to shop, finance, and purchase a powersports vehicle without stepping foot into a dealership. The online shopping platform replaces the dealership with technology, offering consumers a wider shopping selection and — potentially — better savings, according to a company press release.

It is unclear how the online dealer’s financing arrangements will work. Revstop declined to comment at this time.

All vehicles available on the website will come fully serviced, inspected, and delivered to the consumer’s door. To start, the company will focus primarily on used-motorcycles, but as Revstop expands, it will offer a full selection of new and used recreational vehicles. However, the company’s founder plans to limit “rapid expansion” to ensure the company can maintain high service levels, according to the release.

10. CycleOne Financial

CycleOne Financial, which launched in April 2015, leases all pre-owned motorcycles included in the NADA Guide, President Logan Riley told Powersports Finance. Lease amounts can be up to $12,000, and lease terms range from two to four years, but can be extended up to five years, depending on the lease amount and consumer credit.

The Orlando, Fla.-based powersports lessor has raised $4 million in seed funding to-date, Riley said. CycleOne’s first seed round garnered the company $1 million, which allowed CycleOne to get “up and running.”

Now, CycleOne’s top priority is raising capital to expand the startup’s dealer reach to the entire state of Florida. CycleOne makes leases for 15 “hand-selected” dealerships in the Orlando and Tampa Bay areas.

11. Speed Leasing

Speed Leasing, which started originating leases on April 25, is a motorcycle lessor funded by an undisclosed private equity firm. It was formed at the end of last year and recently launched its website.

Speed Leasing has six team members that were brought onboard for the company’s launch, all of which are former Chrome Capital executives,  Partner Hasham Malik told Powersports Finance.

For now, the startup will lease Harley-Davidson motorcycles, 10 years old or newer, Malik said. However, once the company is “up and running,” Speed Leasing hopes to expand and include all metric motorcycles — potentially within two to three months, he added.

Pompano Beach, Fla.-based Speed Leasing finances consumers from prime down to as low as a 500 Fico score. The company will offer leases in Florida, Texas, North Carolina, and South Carolina to start, but plans to expand “as quickly as possible,” moving up the southeast into additional states.

12. Powersports Credit

Powersports Credit offers motorcycle parts, wheels, and accessories financing, according to its website. The company works with various vendors to allow consumers to “mix and match” parts and build their “dream bike.”

“Start building your dream bike today,” the company said on its website. “Pick the year, make, model, and rim size of your bike. Then customize everything from the handlebars to the exhaust.”

Once consumers apply for financing, they will receive “approval sent direct to your smartphone in minutes, not days,” the company said.

Honorable Mentions:

13. Fun 2 Rent

While no longer in business — per the company’s inactive website URL — Fun 2 Rent is worth mentioning as it offered a unique rental service. The company, which dubbed itself as the “Airbnb for boats and powersports,” offered peer-to-peer boat and powersports rentals.

“Rent from owners in your neighborhood,”  according to its profile on AngelList. “No membership fees. Everyone’s insured — enabling owners [of] boats and powersports to profit on equipment that sits idle 95% of the time, lowering the cost of ownership and rental prices. Over $1 million of liability insurance and collision/physical damage coverage.”

Check out the demo video below:

14. Jupiter’s Motorcycles

Jupiter’s Motorcycles, a motorcycle rental service in New York City, is also no longer in business.

“Regrettably, due to circumstances beyond our control we are no longer able to provide this incredible service to you our friends and customers,” the company wrote on its website.

Jupiter’s Motorcycles offered European motorcycles to explore New York and the northeast. Customers could rent a motorcycle for the day or week, or gain access to a full fleet of motorcycles via the exclusive MotoShare program, according to its website. MotoShare members could “access a variety of motorcycles without any of the hassles of ownership for a low monthly fee,” the company said.

Launched in Brooklyn in 2009, Jupiter’s began as a motorcycle rental service and the company evolved to feature membership through MotoShare. Jupiter’s operated in the five boroughs of NYC and offered a European fleet of motorcycles — including BMW, Triumph, and Ducati motorcycles.

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