Next up in our monthly mini-series we look at the advantages of car stocking finance.
The automotive industry is constantly evolving so staying ahead and outperforming the competition requires innovation, excellent choices and astute financial management. One of the most influential factors for this is car stocking finance. It is a pivotal solution that helps dealerships to successfully manage their stock levels whilst also fulfilling growth initiatives.
There are several advantages to car stocking finance:
Excellent inventory management – by using stock finance solutions a dealership can purchase new stock without having a negative effect on their cashflow. They can invest in many different vehicles allowing them to continue to adapt to the changing consumer needs based on make, model and features.
Flexible funding provisions – this is not like a traditional loan which has a rigid repayment term. Car stocking finance is flexible, and repayments are typically made only once the stock has been sold. A dealership can use stock finance to invest in a specific make or size of vehicle or they might be in the middle of a sales boom so need new stock quickly.
Fulfil growth plans – whilst the key requirement is to purchase more stock, a dealership will also need funding for other key areas of the business. This could be to increase showroom space, fulfil marketing campaign or diversify into other sectors (such as company cars or commercial vehicles). The use of car stocking finance can empower a dealership to adapt to market trends and fulfil their growth plans.
Reduce stock shortages – at times a dealership could experience stock shortages which will have a negative effect on business performance. By using stocking finance, a company can help reduce these risks, they can ensure they have an optimum level of stock to meet customer demands, capitalise on new sales opportunities and maintain a healthy operating model.
Strengthen relationships with manufacturers – if a car manufacturer knows that they will be paid in a timely fashion they will do all they can to support the dealership. Positive relationships are built through credibility and reliability, by using car stocking finance a dealership can demonstrate this and help bolster its credibility to ensure their future stocking needs are continually met.
Better administration – when using car stocking finance the administration process is simplified. Documentation is submitted online, this then enables the expediting of funds being transferred, allowing additional stock to be purchased quickly. No hassle, no fuss, leaving the dealership to solely focus on the sale of the vehicle.
Car stocking finance provides a flexible funding solution, mitigates risks with excessive inventory and strengthens business partnerships. A dealership can benefit from a sustainable solution which can help to facilitate growth and improve profitability.
If you would like to find out more about car stocking finance, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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