CDF Casts Wider Powersport Net, Before Acquisition

Is Commercial Distribution Finance (CDF) working toward cornering the powersport industrcanstockphoto18931247y, despite a less-than-clear fate for 2016?

CDF announced today that it has struck yet another partnership to exclusively provide inventory financing, this time for snowmobiles, all-terrain vehicles, and side-by-side manufacturer Arctic Cat Inc.’s (ACAT) North American dealer inventory.

“We’re consolidating our North American dealer-inventory financing under CDF because of their expertise in our industry and their leading technology solutions,” Chris Eperjesy, chief financial officer of Arctic Cat, said in a press release.

Throughout December, the company announced the extension of its joint venture, Polaris Acceptance, which provides floorplan financing to Polaris dealers, as well as the formation of a new partnership between Royal Enfield and CDF parent company, GE Capital.

In July, Jeremy Jansen, president of the motorsports group at CDF said that following a 12% increase in dealer financing volume through June, the company expects additional growth into 2016.

“Industry growth is coming from a steadily improving economy and from innovative product offerings from our manufacturing partners, attracting new riders,” Jansen said in a release.

However, CDF’s fate remains in flux, following GE Capital’s decision to sell its global Commercial Distribution Finance, North American Vendor Finance, and Corporate Finance platforms — under which Commercial Distribution Finance falls — to Wells Fargo & Co in October. The sale is expected to be completed in the first quarter of 2016.

Matthew Wood

Matt Wood is the Associate Editor of PowerSports Finance, where he is responsible for covering all the latest news, trends, and innovations with powersports lenders and dealerships. Previously, Matt was a writer for Auto Finance News before switching full-time to PowerSports Finance. He is also an experienced entertainment news writer covering pop culture, movies, and TV shows. Matt received his Bachelor’s degree in Communication from Rowan University in New Jersey.

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