Octane secures $500 million funding to expand powersports financing

Octane Lending , a fintech company offering financing for motorcycles, ATVs, mowers, and more, has secured a $500 million forward-flow facility with AB CarVal. Under this agreement, AB CarVal will purchase fixed-rate installment powersports loans from Octane’s in-house lender, Roadrunner Financial, with Roadrunner Account Services managing loan servicing.

This deal allows Octane to capitalize on its business momentum and further expand its capital base.

Founded in 2014, Octane facilitates recreational purchases by guiding enthusiasts through its media brands, including Cycle World and UTV Driver, which were acquired in 2020. It prequalifies consumers instantly on dealer and OEM websites, making the closing experience seamless, and partners with select OEMs to offer promotional-rate loans via Roadrunner Financial.

As a fun fact, Rider Insurance, now part of Plymouth Rock, was one of Octane’s earliest investors, participating in its $1.4 million seed round in 2014. Progressive joined as an investor in 2021.