When dealers are looking to purchase more inventory or want to make improvements to their dealership, they will often need to secure additional funding to do so. While they may feel more comfortable working with a local lender they’re already familiar with, they should be aware that they might be missing things like access to other features that come with a traditional floor plan and can help them run their business more efficiently. Here are some ways that traditional floor plan financing differs from financing through a local lender:

Established Security – When you take out a loan for your dealership through a local bank, you may feel an added level of security because you’ve worked with them before on your personal banking needs. But you could also be making yourself more vulnerable to your personal assets being impacted by the health of your business because a lot of local banks will ask customers to use things like their home as collateral to establish a new loan. However, when you finance with a traditional floor plan company your personal assets won’t be tied together with your business loan.

Additional Tools – While you may like the simplicity of your local banks financing, you may also be missing out on opportunities to streamline your business. Floor plan companies like NextGear Capital know that there are many different aspects to running a dealership and that’s why they’ve created additional resources to support the independent dealer with their day to day needs. Tools like Account Portal allow dealers to manage their inventory, floor a vehicle, or release a title all from the convenience of their desktop or mobile device.

Transparency – Like a lot of independent dealers, you may think that part of the benefit of working with a local bank is that you won’t have to worry about the surprises that come with larger floor plan companies. What you may not realize is that a lot of local banks use traditional floor plans as their main lending option to dealers, and are just as susceptible to the same types of changes. That’s why companies like NextGear Capital know it’s important to provide straightforward information when it comes to a dealer’s terms or fees.

More Inventory Options – A lot of dealers will find that floor plans available through local lenders come with restrictions when it comes to the types of inventory they can sell, which is understandably frustrating when you’re looking for certain types of vehicles. NextGear Capital knows the importance of getting the inventory your customers are looking for and don’t have restrictions on things like vehicle models. Since they’re also a part of the Cox Automotive family, they’re integrated with Manheim Express which allows dealers to purchase inventory online from different auctions so they have access to a larger variety of inventory.

Customer Experience – It’s easy to think that when you work with a local lender you’ll receive a more personalized level of customer service. But when you work with a floor plan company like NextGear Capital you will have access to an entire staff of client facing team members, including a dedicated performance manager who can answer any questions you may have and ensure that all that all your business needs are being met.  

Don’t be afraid of getting out of your comfort zone to work with a floor plan company that’s designed to support the needs of the independent dealer. Contact us to find out more about how a floor plan can help support your business.