Outdoorsy launches RV loan product with Lead Bank

US: Online RV rental and outdoor travel marketplace, Outdoorsy, has partnered with Kansas-based community bank Lead Bank to bring innovative RV-focused lending solutions to the United States.

The partnership between Outdoorsy and Lead Bank marks a deeper push into offering financial services that support RV, motorhome, trailer and overland vehicle owners. It kicks off with the launch of an RV loan financing product to help eligible owners take advantage of competitive interest rates.

Outdoorsy co-founder and CEO, Jeff Cavins, said: “Most RV owners never refinance their loans and don’t take advantage of the low interest rates available in the market. This product helps Outdoorsy owners save hundreds of dollars a month. We’re excited to help put more money in the pockets of RV owners while also enabling them to earn extra income by listing their RVs for rent on Outdoorsy.”

In a recent survey, Outdoorsy found that the majority of new and existing RV owners rarely compare interest rates when shopping for a loan. In fact, 90 per cent of RV owners never shop around when getting a loan on their RV purchase, with many RV owners locking into loans with interest rates hovering anywhere from six to 12 per cent.

Outdoorsy’s proprietary data on RV ownership and usage — including monetisation opportunity through its marketplace — allows it to provide unique credit products for RV owners.

Outdoorsy VP of product, Anish Bhatt, who joined the company’s executive team in April, is leading the product launch, as well as overseeing Outdoorsy’s partnership with Lead Bank.

Bhatt said: “We are ready to unlock a massive wave of new owners who originally walked away from dealerships offering unfavourable loan terms. We’ve heard this grievance from our customers and many of our most successful listers.

“Many want to buy a new vehicle and grow their rental business and their fleets, but there hasn’t been a financially viable way to fund the costs. With the launch of our partnership with Lead Bank, I’m thrilled to be able to offer industry-low interest rates that help make RV ownership and rental business dreams a reality,” he added.

In Q2 of 2021, the RVIA [Recreational Vehicle Industry Association] reported that the RV industry had set a new record for shipments with 151,760 vehicles shipped. With the influx of interest in RV ownership and a significant backorder expected to hit the market in the next eight to ten months, Outdoorsy says it has seen a sizeable target market for the service.

The company is partnering with Kansas City-based Lead Bank to underwrite the loans and offer industry-low interest rates.

Lead Bank CMO Melissa Beltrame said: “Partnering with Outdoorsy and offering our competitive Banking as a Service [BaaS] solution to this RV-lending fintech ultimately gives more communities access to enjoy the great outdoors. Lead Bank continues to imagine how traditional community banks can serve new companies with compliant and innovative lending products, resulting in a win for the bank, a win for the company, and a win for the borrower.

“BaaS solutions enable companies like Outdoorsy to be able to offer their unique service at scale, and we are truly excited to be a part of this endeavour,” she added.

In addition to RV loan financing, Outdoorsy is planning to team up with RV dealerships to provide further loan financing options for consumers looking to purchase RVs. Looking ahead, the company will take on new financing and banking initiatives to help RV owners upgrade their vehicles, build out their rental businesses, and offer financial incentives for optimal RV owners operating their rental businesses through Outdoorsy.

The launch of the new partnership builds on Outdoorsy’s period of growth in 2021.

In June, Outdoorsy announced that it had raised $120 million in equity and debt financing, including a $90 million private placement equity round led by Moore Strategic Ventures, ADAR1 Partners, Monashee Capital, SiriusPoint Ltd and Convivialite Ventures, the corporate venture group of Pernod Ricard.

At the same time, the company launched Roamly, its RV-focused insurtech, which aims to transform the world of RV insurance by creating policies that eliminate the commercial use exclusion clause and allow RVs to be ‘rent-ready’.

Also in June, Outdoorsy participated in luxury glamping startup Collective Retreats’ $23 million Series C funding round, marking the former’s expansion of its outdoor experiences portfolio.