Sparta Commercial Services signed up 500 new powersports dealers in 2008, an increase over the 300 dealers who signed up in 2007, the company reported in a recent release.
The powersports financial services provider said 100 new dealers have already signed up during the first quarter of 2009, bringing the total number of dealers in Sparta’s nationwide network close to 2,500.
“For nearly a year, a number of our major competitors have been gradually scaling back their lending activities, with some leaving the indirect financing sector entirely,” Sparta’s CEO Anthony Havens said in the release. “This has resulted in more dealers turning to Sparta as their preferred source for indirect consumer financing.”
The company also said a recent agreement between a Sparta subsidiary, Autobahn Funding Company LLC and DZ Bank AG Deutsche Zentral-Genossenchaftsbank, will produce an extendable one-year $25 million revolving credit facility. The agreement, which requires Sparta to meet certain financial covenants prior to initial drawdown, may be increased subject to performance.
“The new credit facility with DZ Bank shows that even at a time when other lenders are scaling back,” Havens said in the release, “a financial services company like Sparta, with a highly focused and effective business model, can generate the kind of institutional confidence and support that this transaction demonstrates.”