Nova Financial Services, Birmingham, AL, has announced its intent to offer floorplan financing for boat builders and dealers, which will eventually include business in Canada. The lending services offered by the company will be asset-based.
“We do business internationally and we will be doing business with Canadian builders,” says Mike Kelley, Nova Financial Services' Chief Business Development Officer. “We're ramping up our operations right now and it may be a few months before we can approach the Canadian market, but we will be entering that market.”
According to Kelley, Nova Financial Service's was incorporated as an LLC in October 2009 and its financial backer is Bronlen Financial Group of Arizona, based in Phoenix, AR. Kelley says Nova Financial will serve as the face of Bronlen in the marine industry. “I guess you could say we're their sales division in the marine industry,” says Kelley. “It's custom tailored floorplan financing, with rates determined once the business is qualified.”
“I am the lender and broker,” says Raquib Adduallah, Bronlen's Managing Principal. “Mike Kelley is a very astute individual when it comes to the boat industry and he is bringing the business of Bronlen Financial Group of Arizona to customers through Nova Financial Services.”
Kelley briefly described how manufacturers would be assessed for lending potential. “Traditionally lending potential is determined with credit score,” describes Kelley. “Unlike that, asset-based lending considers the entire picture of the operations, the assets that they own, cash flow, orders on hand, real estate, partners and corporate officers who may have assets involved in the business. Value is placed on the whole business and from that point credit worthiness is determined and offered. This gives them access to funding they may not otherwise have. It's not traditional mortgage-type situation. There is collateral and recourse, but it's designed to fall on both a dealer and a builder. The two together give it strength. We offer manufacturers a line of credit, then we offer their dealers a chance to qualify – possibly the two together if need be. Most dealers here in the last few years have been unable to access any funds through the traditional method. Most likely any given builder out there who is still building has had some hard times in the last two years. A traditional institution may decline them for funding.”
Kelley has confirmed that his company is currently operating a pilot lending program in the US with the participation of a few boat manufacturers. Participating manufacturers are being asked to recommend three dealers with different credit histories to see how they qualify for financing.
To contact Mike Kelley call (205) 202-1441.