Empower Your Dealership with the Right Floor Plan
The automotive industry is very unique in that it is one of the few industries where it is relatively easy to qualify for commercial loans. Whether you are just starting out or looking to grow your business, it is likely you will be able to find the capital needed to stock your dealership.
Inventory financing (or “floor planning”) continues to be a viable source for dealers to floor their units. Not only does a floor plan allow dealers to expand their new and used offerings, but it frees up capital for other uses and lets dealers focus on what they do best: sell cars.
A flexible floor plan allows dealers of any size to finance used and new vehicles from multiple buying channels, including auction purchases, trade-ins, wholesale units, dealer-owned inventory and even private owner purchases. From a franchise owner with multiple lots to a small mom-and-pop operation, floor planning is an efficient and simple way dealers can balance credit and working capital to maximize their cash flow, which is the lifeblood of a dealer’s business and the fuel for growth.
An added benefit floor planning provides is the ability to leverage additional tools to assist with cash flow. Having financing options not only allows dealers to increase cash flow while waiting on units to sell, but the relationship between commercial (floor plan) and retail (consumer) lenders can greatly assist dealers by getting profits quicker and satisfying debt sooner, which allows dealers to buy and sell more cars.
A line of credit can sometimes be a one size fits all, but many dealers have different needs, from wholesale to retail, high line to economy. With the flexibility of a floor plan, dealers can accommodate their needs and demands by choosing terms/programs that are right for them.
Floor plan companies can also play a role in helping dealers expand their business. If a dealer wants to expand his/her operations or add a second location, they’re going to need units to sell on that new lot. By working with a willing and focused floor plan company, a dealer can simplify the process of securing new capital to help stock their new lot or expand an existing location.