Floor plan companies can help you stay focused and reach your goals. When you open a line of credit, you should feel like you gain a partnership. A floor plan company can provide you with many helpful products and services that can ease the stress associated with running a dealership.
A True Partner
The pressure to manage all aspects of your business can be overwhelming to you and your dealership. A floor plan company will partner with you to alleviate this pressure and provide dealer solutions to keep your business running.
Some companies offer a consultative approach, which means they won’t stand in your way of working independently. When you need help, you will be able to count on a team of experts to help manage business. A company dedicated to clients will often offer dealer resources and regular appointments to touch base to see how they can help your business. It is important that you find a floor planning partner that can offer market insights specific to your dealership and work with you to overcome obstacles in your way.
A floor plan company should go above and beyond offering a line of credit. Look for a company that offers floor plan products and services designed to save you time. Your time is valuable, and these services can prove extremely beneficial to you and your business. Title management and release, expedited funding, and account management are all services that man floor plan finance companies offer that can save you time. A title management service that keeps your documentation safe, secure and easily accessible in a cloud-based environment will keep your business organized and running efficiently. In some cases, complimentary vehicle valuations may be offered to help you save time on making sourcing decisions.
All these dealer tools and solutions should be easily accessible, so you don’t waste time searching for them. By taking advantage of all the resources a floor plan company offers, you’re positioned for profit and reducing time spent on administrative tasks.
Cash Stays on Hand
One of the most common reasons dealers choose to partner with a lender is for the floor plan financing. A floor plan complements your cash buying strategy, making cash available when and where it’s needed, and not completely tied up in inventory.
When a dealer floors a vehicle, they have no personal investment in the vehicle until the first payment is due, which is typically only a small fraction of the original vehicle value. Depending on a dealer’s contracted terms, that could potentially be 30 days after acquiring the vehicle. Floor planning dealers aiming to turn inventory approximately every 60 days will have very little of their own cash tied up in a vehicle, especially if it sells within that time frame. For example, if there is an opportunity to expand your lot, you can answer with immediate access to funding instead of it being tied up in inventory. This is also extremely beneficial when emergencies or unforeseen expenditures arise.
At NextGear Capital, we capture what it truly means to be a partner and offer all of the resources listed above. We are dedicated to saving you time and keeping cash in your pocket. Partner with us today!