Better applicants, better scores drive lending growth
Sheffield Financial posted a record second quarter, and president Jack Snow believes continued growth is on the horizon.
“Production is still way, way up, in all lines of our business — not just powersports,” Snow told Powersports Business. “April was a record month in the history of Sheffield, and it continued right on. We’re breaking every record that we’ve ever had. We’re very, very fortunate to be in this cycle, and we hope it never ends.”
Snow says the retail lender’s “past dues are down, and our bad debts are a lot lower.” Also, credit scores of through-the-door applicants have shown improvement in Q2 at Sheffield, Snow said.
“People are tired of being at home. They want some excitement and they’re going out there and they’re buying it. A lot of these are fun toys. I buy mine for work around the farm and also for hunting and fishing and that sort of stuff, but they’re still fun.”
Side-by-side financing continues to thrive at Sheffield, which is seeing “every OEM we deal with up considerably [from Q2 2011].”
“Everybody is seeing the side-by-side popularity right now,” Snow said. “I just bought a new one this spring. I have grandchildren and they don’t want to take turns riding down to the lake. Those things are great. You can put a bale of hay in them, and the grandchildren, too.”
Sheffield also benefits by providing consumer financing for trailer owners. Sheffield does business with 40 trailer manufacturers, and remains the lone national trailer financer.
“The trailer business is up considerably for us also,” Snow said. “We finance trailers for every one of the business segments we align ourselves with.”
Snow was gracious enough to take out his crystal ball for PSB readers and share his thoughts on Q3.
“We’re seeing a continuation of double-digit growth throughout the rest of the year,” Snow said. “The only thing that could hurt us a little bit is the severe drought in some parts of the Southeast in our lawnmower business.”
Snow plans to show his appreciation for the business — and strive for continued growth — by jumping back on the road show circuit this travel season. He’s planning to attend dealer shows for Polaris, Kawasaki, BRP and Suzuki.
“I’m excited about getting back to the shows and seeing what these great companies are coming out with next,” Snow said.