Next-Financing, a marketplace lending technology platform provider, has ventured into powersports and is on the hunt for credit union partners, said Anthony Quinn, the company’s president.
“Powersports is one of our up and coming verticals that we are starting to concentrate on,” he told Powersports Finance. “Some of the largest credit unions in the country are sitting on our platform funding our deals. They’ve always had the ‘want to’ in terms of getting into lending at the point of sale, but they’ve never had the technology and actual reach to be able to do it to compete with the ‘big boys’ of the world. Our platform allows them to get fully engaged in marketplace lending.”
Marketplace lending is the practice of matching borrowers and lenders through an online platform, also known as peer-to-peer lending. Next-Financing works with eight credit unions across 50 states currently, which fund loans down to a 600 Fico score, Quinn said.
“Powersports is a niche that we found was going to be profitable, defaults aren’t crazy, numbers are not off the charts, and it’s one of those safer big ticket items,” he said. “We don’t feel comfortable financing auto, and we don’t want to compete with all the different auto financing companies out there. We don’t want to get into that fight.”
Phoenix, Ariz.-based Next-Financing facilitated the funding of its first powersports loan through its credit union partners in January 2016, Quinn said, and now its lender partners fund close to 100 per month on average.
The fintech platform provider is looking to get its “feet on the street” within powersports, Quinn said. “We are going to start hiring some people that are very familiar with powersports to where we can pump our numbers up to get to 5,000 transactions per month by the end of 2017,” he added.