Chrome Capital is on pace to double its year-over-year originations again, in addition to reaching its goal of netting 200 dealers to its existing network of 750 by yearend, thanks to the company’s continued success in the subprime market, said Founder, President, and Chief Executive Peter Wasmer.
The motorcycle leasing provider celebrated its five-year anniversary in late May, and has gained four employees in its servicing department this year, commensurate with its growth, Wasmer told Powersports Finance. The company employs more than 50 team members at its Naples, Fla., headquarters.
Chrome Capital’s Wasmer will speak on the “Keys to Successful Subprime Lending” panel at the upcoming PowerSports Finance 2016 conference. During the Oct. 5 session, Wasmer and his fellow panelists will discuss subprime risk, underwriting best practices, and how to avoid seasonal repossession challenges.
It is important not to “over-expose your risk profile” when underwriting in the subprime market, Wasmer said. “Being able to continue to do business in the subprime space requires a rather pointed focus on payments and processes.”
For example, Chrome Capital would not want to extend a “higher advance on a lower quality bike or over-expose an ‘emerging credit customer’ to payments that are not consistent with their ability to pay,” he added. “How much is the company willing to advance? In our case, we are looking at the consumer, but we are really benchmarking our risk profile against the current and future value of that asset, so we don’t want to over-extend our advance on any one asset.”
Wasmer will be joined on the panel by Ben Donnarumma, partner and director of sales and marketing at Ride Today Acceptance; Donal Hummer, president and chief executive at ThunderRoad Financial; and David Goff, assistant vice president of marketing and powersports relations at Westlake Financial Services.Like This Article