A new name - Nova Financial Services - has entered the marine industry as a source of floorplan financing for builders and dealers, the company told Soundings Trade Only this morning.
With the backing of Bronlen Financial Group of Arizona, the new Birmingham, Ala.-based company has started working with a few builders on floorplan financing, said Mike Kelley, chief business development officer. Unlike traditional lending companies, Nova intends to offer asset-based funding to manufacturers and their dealers.
"The industry is in a terrible situation overall and I know that it's slowly coming back now, there are signs out there that it's picking up. The best of the best is not the most creditworthy right now. The survivors that are still producing boats and selling boats, moving boats in the marketplace, some of them have experienced some difficulties in the last couple of years, most all of them have," Kelley said.
"If they went to a traditional institution, they probably wouldn't qualify, but with asset-based lending, it takes an overall picture of their operation, including any assets that they own, orders on hand - it's an entirely different process," he added.
Kelley could not name the builders signed up with Nova, due to non-disclosure agreements, but said there are a few on board, with a line of credit assigned to them and "money is about to flow."
"Presently, we're working with the builders directly and the builders will bring forth dealers to us and it can be an either-or situation for the floorplanning," Kelley said. "We will accept dealers, but the dealers must come to the table through a builder."
Anyone interested can call (205) 202-1441.
"As a newcomer, with no current marine portfolio, and thus absent of any existing liabilities, Nova is poised to offer a ray of hope for many of the cash-strapped builders and dealers as well," Kelley said.
— Beth Rosenberg