what Is Floor Planning?

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You may have heard of floor planning before but might not be sure what it means. Floor planning is simply a revolving line of credit that independent dealers can use for inventory financing to purchase vehicles and free up cash flow for anything from enhancements to the business, to improvements to their car lot. Here are some reasons why you should consider getting a floor plan.

Additional Funding – If you rely on cash to purchase inventory instead of floor plan financing, you won’t have a lot of flexibility when you’re faced with unexpected expenses or fluctuations in inventory prices and market demands. Floor plans provide you with the additional capital you need for any unexpected challenges that arise and give you more breathing room with your cash flow.

Inventory Financing for Independent Dealers – Unlike traditional loans from local lenders or financial institutions, floor plan financing for car dealers is designed to support the unique needs of independent dealers. Whether you’re looking for more cash flexibility or are new to the independent dealer space, floor plan providers like NextGear Capital have you covered with transparent floor plans that are easy to understand. With NextGear Capital, your representative will help you figure out which floor plan will be the best fit for your business and future goals.

floor planning

Access to Tools and Additional Support – Besides providing dealer funding, NextGear Capital provides independent dealers with account management tools and industry expertise so they can run their dealership more effectively. NextGear Capital’s Account Portal provides independent dealers with real-time information on their floor plan while also giving them access to title management, vehicle valuations, payment information, audit reconciliation and more! NextGear Capital clients will also have access to a dedicated Portfolio Manager who can provide them with valuable market information and insights based on their dealership’s activity to help them grow their business.

Floor plans provide you with additional funding to increase your buying power while also giving you access to account management tools and enhancements to streamline your business processes. Finding the right floor plan provider will help you to increase your efficiency while providing you with the insights to become more competitive in your local market.