When a dealer decides to use a floor plan to improve their dealership’s cash flow, there are often a few items that need to be in order to complete an auto dealer finance application. Depending on the floor plan financing company a dealer selects, they might have different requirements. However, below are a few common items dealers should have organized and ready to go to apply with a car floor plan company.
Completed Credit Application
Various floor plan companies will ask dealers to provide certain information on their credit applications. Some of this might include basic information such as the dealership’s legal name, physical address and contact information. In addition, the credit application might also ask for additional details on how a dealership’s business is structured, like if the dealership is a corporation, partnership or LLC, and the amount of credit needed.
This information on the gives auto dealer finance providers the necessary information to determine how much credit they are able to offer to dealers.
In many states, dealers must hold and maintain a valid dealership license to sell vehicles. Depending on an individual state, there are a variety of requirements dealers must adhere to keep their license current. Auto dealer finance providers prefer to see that a dealer’s license is current and has the correct dealership name to ensure it is legal for that individual dealership to sell vehicles in their state.
Depending on the amount of credit requested, dealers might be asked to provide extra documentation on some basic current dealership financials. For some auto dealer finance companies, these financial documents might include income statements, balance sheets, or perhaps a previous tax return.
For dealers looking to grow and expand business, a car floor plan allows dealers to spend their cash where it matters most, growing operations instead of spending it on inventory. Having these various documents prepared and ready to go can help dealers experience a smooth floor plan application process. Want to learn more about the NextGear Capital application process? Contact your local representative to learn more.