Horsepower Financial closes $50 million credit facility with Coromandel Capital

Horsepower Financial said Aug. 6, 2026, it closed a $50 million senior secured credit facility with Coromandel Capital to fund lease originations through its powersports dealer network. The deal is Horsepower's third credit facility and signals continued institutional support as the company expands nationally.

Why it matters: - The $50 million facility gives Horsepower Financial more capital to originate leases for motorcycle, ATV, UTV and SXS customers at the point of sale. - The deal is Horsepower Financial's third credit facility, a sign that institutional lenders continue to back the company's portfolio and growth plan. - The financing expands Horsepower Financial's ability to serve more dealers and consumers as 2026 origination volume grows.

What happened: - Horsepower Financial, LLC closed a $50 million senior secured credit facility with Coromandel Capital LLC on Aug. 6, 2026. - Horsepower Financial said the proceeds will be used exclusively to fund lease originations through its network of franchised and independent powersports dealer partners. - The company described the facility as its third credit facility to date.

The details: - The credit facility is backed by Coromandel Capital LLC, a Los Angeles-based investment firm focused on senior-secured asset-based lending. - Horsepower Financial funds leases directly when a consumer selects a powersports vehicle at a Horsepower-affiliated dealership. - Horsepower Financial said its no-credit-check leasing model has driven demand across its national dealer network throughout 2026. - The facility is designed to support leases tied to motorcycle, ATV, UTV and SXS vehicles. - Horsepower Financial said each successive facility has added origination capacity while preserving disciplined underwriting standards. - Chris Garrido, president of Horsepower Financial, said the new funding reflects confidence from institutional capital partners and will be deployed to support dealer-partner lease funding. - Rob McGregor, managing partner at Coromandel, said Horsepower Financial has demonstrated execution across growth stages and that Coromandel has confidence in the platform and management team. - Horsepower Financial is a subsidiary of Horsepower Capital Holdings, LLC.

Between the lines: - The financing suggests Horsepower Financial is moving from proving its model to scaling it with larger institutional commitments. - A credit facility tied to lease originations can help the company grow without relying solely on equity funding. - The repeated institutional support indicates lenders are comfortable with Horsepower Financial's underwriting and portfolio performance, at least enough to deepen exposure.

What's next: - Horsepower Financial said the new capital will flow into lease originations through its dealer network as the company continues to scale. - The company plans to keep expanding its platform for riders and dealer partners nationwide. - Horsepower Financial included forward-looking statements in the release and said actual results may differ because of risks and uncertainties.

The bottom line: - Horsepower Financial is using its third institutional credit facility to widen its lease funding capacity and support continued national growth.