Bombardier Recreational Products Inc. (BRP) reported its U.S. year-over-year outstandings were up 11% from $670 million to $744 million through Jan. 31, between the company’s third-party finance companies and independent dealers and distributors, according to BRP’s fourth-quarter and fiscal year financial results released today.
BRP’s third-party financers “improve the company’s working capital” and allow for “an earlier collection of accounts receivable” from its independent distributors and dealers, according to the release. Clemmons, N.C.-based Sheffield Financial is one of BRP’s partnered third-party financers in the U.S.
BRP has offered its partners “great financing support for snowmobiles,” Sebastien Martel, BRP’s chief financial officer, said during the earnings call. “The feedback we’ve gotten from our dealers and consumers is that retail financing was a big plus in helping us close the retail gap we had earlier in the season” in the snowmobile market, which was primarily due to the lack of snow.
Valcourt, Quebec-based BRP designs, manufactures, and distributes powersports engines and motorized recreational vehicles, including snowmobiles, watercraft, ATVs, and side-by-sides. The products are distributed by more than 4,200 dealers and distributors in over 100 countries. BRP added 105 dealers to its North American dealer network in 2015.