February 19 2008.

Black Horse Motorcycle Finance has launched "Finance Direct" - a new initiative to help dealers increase their F&I income without having to be FSA registered.

With continued pressure from direct lenders, and legislative constraints imposed by the FSA, many dealers have abandoned attempts to offer finance and insurance to their customers at the point of sale. This vital income stream is clearly suffering as a result.

As the majority of smaller dealers are not FSA registered, they can not offer any general insurance products on bikes. However, through Finance Direct, Black Horse deal directly with customers on the dealer's behalf, writing incremental volumes of Finance and PPP whilst paying commission to dealers on any sales.

John Anderson, Motorcycle Finance Director explains, "It's crucial that we try to continue to sell finance & insurance products where dealers can't - because they're not FSA registered.

"Finance Direct overcomes some of the challenges of selling finance at the point of sale, as the sales process is non-intrusive, so it doesn't jeopardize the sale of the bike. After all, most customers still need some sort of finance to purchase their bike."

Dealers do not have to become FSA registered to offer Finance Direct to their customers, all they have to do is become an IAR (Introducer Appointed Representative) for Black Horse and refer customers to the finance house, who will in turn, contact the customer.

During trials across a range of its Motor & Leisure dealers, Black Horse successfully converted over 70% of the customers referred to them - earning dealers an average £150 commission. This is a great opportunity for dealers to increase their income with very little effort.

The Black Horse Finance Direct team will complete all the necessary FSA documentation including "Demands and Needs" questionnaires with customers over the phone. So customers will only be sold products that suit their needs.

Extensive internal training has taken place, and a variety of marketing materials will be made available to support the promotion of Finance Direct in dealers' showrooms.