While many dealers have heard about floor plans, they might think that they operate in a similar style to a local lender or a traditional financial institution by simply offering lines of credit. However, floor plan lenders know that independent dealers have unique needs and have designed their floor plans with that in mind by providing additional tools and services to help support their whole business. Here are 5 things you may not know about floor plan lending:
- Increased Flexibility – With additional cash flow, you have the flexibility to be agile. Do you need to quickly meet the demand of your customers, or do you want to try stocking your car lot with different types of vehicles? Working with a floor plan lender provides you with collateral and market insights so you can make quick changes when needed.
- Financing Designed for Dealers – Traditional loans are typically structured with rigid terms and don’t take into the consideration the needs of a specific business. Floor plan lenders like NextGear Capital have created different types of term plans. Whether you’re new to the independent dealer space, specialize in carrying lower priced inventory or are looking for lower principal reduction payments, you’ll be able to select the plan that best fits your needs.
- Account Management – Do you get tired of spending hours tracking down your titles after an auction sale? When you choose a floor plan lender that offers products like NextGear Capital’s Account Portal, you’ll have access to tools that can help you manage different aspects of your dealership like audits and title management, saving you time so you can focus on selling more vehicles.
- Additional Support – Whether it’s answering questions about your account or helping you figure out the best inventory to carry to reach your target customers, floor plan lenders provide you with the additional support you need to help your dealership reach its full potential.
- Transparent Financing – It can be difficult at times to know what you’re being charged for when your traditional lender has hidden fees buried in complicated loan terms. Floor plan lenders like NextGear Capital know how frustrating this is and make sure fees are upfront and easy to understand, so you don’t get hit with any surprises.
Just like shopping for the right vehicle, you want to feel confident you’re selecting the right financing for your dealership. If you’re looking to add inventory to your lot or want to make upgrades to your dealership, choosing a floor plan lender versus a traditional bank provides you with the cash to do so. You’ll also have access to additional resources to help support your day-to-day needs and run your business more efficiently. With the right floor plan, you’ll have both the financial means and expert industry support to navigate through challenging times and adapt as needed. Start floor plan lending today!