In all aspects of life, we build and nurture relationships. Whether it is with our spouses, friends, or co-workers, developing a strong relationship is paramount. This holds true for dealers too, who strive to find a lender that they can trust and with whom they can have a long and prosperous business relationship.
The relationship between dealers and lenders is vital to each other’s success. With so many different avenues (auctions, finance companies, floor plan companies, etc.), there are many different people dealers must rely on to make their business successful. Building strong relationships with the right people can go a long way in helping a dealer’s bottom line.
Lenders can be a great asset to help dealers grow their businesses. As such, dealers should view the relationship with their lender as a great opportunity to tap into an important resource. Lenders have a wealth of knowledge in the industry which allows them to help dealers make key decisions involving their floor plan and business. By taking advantage of this opportunity and working together, both parties will experience positive results.
Transparency is key to building the relationship. Both the dealer and the lender have specific goals, and being open and upfront will allow both parties to collaborate on the best way to reach their respective goals. Conversely, when dealers are not being transparent with their lender, it will hinder them in their ability to help you reach your goals.
A successful dealer-lender relationship is built on trust. This trust can be accomplished by building and gearing it towards a balance. It can’t benefit just one side. The dealers that have the best relationships with their lenders are the ones who are willing to work on developing a trusting partnership with their lender. Therefore, the dealer needs to feel comfortable coming to their lender for advice on questions pertaining to their floor plan or growing their business, as this will allow both parties to strive to reach their common goals.
It’s really important that dealers leverage their relationships to help them run their businesses, and equally important to think about the future as well as the present when it comes to their relationships. Anybody can shake somebody’s hand and ask them about the weather, but to have a true understanding and investment in somebody’s success is what truly defines a relationship.