American Cycle Finance set a monthly contract goal for its dealers in an effort to increase volume following the company’s acquisition by Cardiff International Inc., Ben Donnarumma, managing director of American Cycle, told Powersports Finance.
American Cycle — formerly known as Ride Today Acceptance — makes loans in 15 states for 208 dealers, as of last week.
“We are concentrating on 15 states for now,” Donnarumma said. “We have to increase the number of contracts that a dealer does through American Cycle Finance per month. That’s our concentration, and we are giving our existing dealers as much support as we can so they can increase the volume.”
The subprime lender’s dealer network target is to reach 250 dealers by Aug. 1, he said. “We are taking on dealers that have the ability to give us contracts,” he said. “As of right now, our goal is to have each dealer generate five contracts per month.”
To accomplish its network goal and assist its dealers in meeting their contract expectations, American Cycle is ramping up its training and dealer support efforts, Donnarumma said. “We’ve sent National Sales Manager Jason Sheeley to numerous dealers when they have big sales, if they have an inventory liquidation, or [are having] their biggest sale of the year, we send someone down to represent us for the weekend,” he added. “We want to give the dealer a lot of support and training so they have a better understanding of what the subprime market is, and what the opportunity is for the subprime market.”
In February, Cardiff signed a definitive merger agreement to acquire American Cycle Finance as its subsidiary, in an all-stock transaction valued at $5 million. The acquisition is expected to close within 60 days, Donnarumma said.
Marlborough, Mass.-based American Cycle Finance began making loans for powersports vehicles in 2015. The lender ended 2016 with a portfolio of more than $7 million, losses of less than 1.6%, and a revenue of $1.3 million.