SOURCE: Sparta Commercial Services, Inc.

October 30, 2006 09:30 ET

Sparta Expands Online Powersports Financing

Agreement With netLoan Funding Positions Sparta as Preferred Lender

NEW YORK, NY -- (MARKET WIRE) -- October 30, 2006 -- Sparta Commercial Services, Inc. (OTCBB: SRCO), the New York-based financial services company exclusively dedicated to the powersports industry, today announced that it has launched a major new initiative in cooperation with netLoan Funding, LLC. netLoan manages a consortium of specialty lenders through its operation of a multi-asset finance portal that is linked to internet auction and sale websites.

Although the agreement between Sparta and netLoan was concluded in May, the required interface between the IT platforms of the two companies was accomplished in September, followed by several weeks of beta testing.

Commenting on the establishment of Sparta's latest strategic alliance, Anthony Havens, Sparta's CEO, said, "We consider this opportunity to be a particularly significant milestone in Sparta's growth, and a further demonstration of our commitment to continue expanding the financing opportunities for the powersports industry."

According to Havens, "netLoan Funding requires that the lenders participating in the netLoan consortium strictly adhere to certain rigid requirements concerning customer service, data security, reporting and marketing, and we are especially proud of the fact that due to our strong internal controls and our advanced proprietary iPLUS™ point of sale decisioning and operating system, Sparta was selected to join this prestigious group of financial services providers."

Pursuant to the agreement, Sparta's financing and leasing products will now appear as a funding option on the netLoan Funding platform. Accordingly, consumers interested in obtaining a secured loan or lease for the purchase of motorcycles, ATVs, and scooters will be routed through the netLoan Funding website to Sparta's easy online credit application, where their application will be automatically decisioned by Sparta's iPLUS™ system and, subject to credit approval, will be able to obtain a loan or lease commitment from Sparta within minutes.

Havens then added, "Given the quality of the internet auction and sale site currently using the netLoan Funding service, this new affiliation clearly represents a tremendous opportunity for Sparta, and we couldn't be more enthusiastic."

"Now that all the technical work and the beta testing have been successfully completed," Havens continued, "we are rolling out the program gradually, adding ten states per week, with the expectation that the program will be fully operational and available in all fifty states within thirty days. To be associated with the outstanding people at netLoan Funding and their affiliates is an important achievement for Sparta and we look forward to a long and highly beneficial relationship for all concerned."

About Sparta Commercial Services:

Sparta Commercial Services, Inc. (www.spartacommercial.com) is an internet-based acceptance (sales finance) and leasing company dedicated exclusively to the powersports industry, concentrating on financing and leasing motorcycles over 600cc, 4-stroke all-terrain vehicles, and select scooters, offering its programs directly to dealers and through private label programs for manufacturers' distributors. Sparta provides a full line of financing solutions including indirect retail installment sales contracts, direct closed-end leases, and open-end consumer and commercial credit lines as well as related services including GAP coverage and vehicle service contracts.

About netLoan Funding:

netLoan Funding, LLC (www.netloanfunding.com) provides lender management services through its operation of a multi-asset finance portal linked to internet auction and sale sites. netLoan Funding provides customers with access to secured loans and leases, unsecured personal loans and home equity lines of credit for the purchase of a variety of consumer and commercial assets including boats and RVs, commercial vehicles, motorcycles, ATVs, exotic and classic cars, parts and accessories, and aircraft.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are valid only as of today, and we disclaim any obligation to update this information. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to potential future losses, amount of, obtaining and satisfying terms of credit lines, competition, financing and commercial agreements and strategic alliances, seasonality, potential fluctuations in operating results and rate of growth, management of potential growth, system interruption, consumer and industry trends, limited operating history, and government regulation. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Contact Information

  • Contact:

    Dick Trotter
    COO
    Sparta Commercial Services, Inc.
    212-239-2666