What types and ages of vehicles can you finance?

New and used Domestic, Metrics and European motorcycles, powersports vehicles, and recreational vehicles. Underwriting guidelines can be customized to specialized verticals within your growing needs.

What borrower profile do you service?

We emphasize prudent collateral LTV and underwrite primarily on stability of residence, income, and ability to pay. Credit scores are not the most important criterion. There is no minimum FICO for customers to qualify.

What % of the amount of contract receivable can be funded?

Between 50%-80% depending on the finance company’s advance rate with the asset based lender. Seasoned, mature captives can be approved to borrow up to 80% in the current market subject to bank approval.

Is the dealer paid in full at time of sale?

Yes, subject to credit, rate, fees and advance guideline. No funds are withheld from the dealer.

How are dealers paid?

ACH transfer upon receipt of the complete original documents that are compliant to the system approval.

How are the applications submitted?

Applications are submitted online via an application portal which can be customized to your dealership’s branding.

How are status of credit applications tracked?

Application status can be monitored via Ironhorse Funding LLC’s online origination system. Dealers can monitor via the online portal and will receive automated status by email and/or fax.

How fast can loans be approved?

Credit can be adjudicated on a near instant basis by utilizing Ironhorse Funding LLC’s automated score cards and credit decisioning platform. We can set up application filtering, auto decline criteria, auto approval and multi-tiered credit programs.

How rapidly are loans funded?

Properly documented, approved and completed contracts may be approved for funding within 24 hours.

Are there any fees to the dealer?

Customized credit, rate, advance, term and fees are developed by Ironhorse Funding LLC in conjunction with our clients.

Where should a dealer be in terms of size, revenues, etc. to start the process of becoming a captive finance company?

  • Five+ years in dealer ownership/operations

  • Is a top tier franchised dealer

  • Owns or has a long-term facility lease for the dealership

  • $5M+ in new and used retail sales

  • Designated F&I manager

  • Dealer must have a minimum of $200k - $250k in liquid capital available.

  • An understanding of the value proposition of incremental sales; our program can add up to 20% to a dealer’s new and used sales in the first full operational year (not the ramp up year). Dealers must be committed to carrying operational costs of their new finance company until break-even is surpassed. ($1, 200,000 in loans booked over approximately 12 months (the break even point)).

How do we start the process of becoming a new Captive Finance Company?

  • Execution of our Engagement and Service Agreements

  • Initialization fees:

    • Retainer for formation, regulatory and filing fees

    • Monthly services fee for operations, IT, platforms, operational identity, phones

  • Sign servicing and custodial agreements

  • Sign bank application forms

  • Formation of your finance company – SOS, DOR and DMV filings

  • Financial package application:

    • Personal Financials

    • Two years of Corporate Financials

    • Two years Corporate and Personal Tax Returns

  • Bank Presentation

  • Regulatory licensing (30 to 180 days depending on jurisdiction)

  • Capital plan delivered

  • Training schedule: Underwriting, IT platforms and systems, procedures

    • Portfolio Management (credit account) fees: fax, mailing, etc.)

    • $500 per month against the total of outstanding loan servicing fees (per contract) on the following schedule, whichever is greater:

      • Monthly @ $10.00

      • Bi-Weekly @ $12.00

      • Weekly @ $14.00

  • Other expenses are a pass-through to the client. These expenses include, but are not limited to repossession/recovery fees, web applications, auto attendant, E-Fax, legal fees, bank fees, credit reporting, software, computer charges, contract fees, NADA pulls, credit bureau expenses, application processing, facility, utilities, and security.