Floor Plan Financing Companies for Dealerships

If you're a dealership looking to manage your floor inventory efficiently, you'll want to consider partnering with a reputable floor plan financing company. These companies provide essential financing solutions to help dealerships purchase and stock inventory, allowing them to stay competitive in the market.

Some floor plan financing companies, like FloorPlan Express, offer flexible financing options with competitive rates and terms. This can be a game-changer for dealerships looking to expand their inventory or cover unexpected expenses.

Dealerships can expect to receive financing approval within a short timeframe, often within 24-48 hours, with companies like Merchants Fleet Solutions providing rapid funding options. This quick turnaround time is crucial for dealerships to stay on top of their inventory management and meet customer demand.

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NextGear Capital is a well-established company in the dealership floor plan industry, with over 23,000 dealers and 10 years of experience.

It offers both retail and wholesale financing options, making it a versatile choice for dealers. This allows them to finance a wide range of units, including retail, wholesale, salvaged, and rental units.

NextGear also provides finance for trade-ins, off-street, and dealer-to-dealer purchases, giving dealers more flexibility in their business operations.

Don't let a lack of capital hold you back from growing your dealership business. With alternative lending options available, you can acquire the capital you need to keep your business going and thrive.

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Choosing the right company for your floor plan financing needs is crucial for the success of your business. NextGear Capital offers competitive interest rates and flexible terms that can help you achieve your goals.

To find the best floor plan loans, you need to examine the options thoroughly. Look for a funder that provides a high percentage of the vehicle's value, including VAT on qualifying vehicles, and allows you to purchase inventory from all sources.

When evaluating different floor plan financing companies, consider the following factors:

Ultimately, the right company for you will depend on your specific needs and goals. By considering these factors and doing your research, you can find a floor plan financing company that helps you achieve success.

Choosing the right company for your car dealership's floor plan funding is crucial for growth.

Floor plans are an incredibly useful way for dealers to obtain funding for their inventory, especially if they’re seasonal.

You want to work with a reputable company that knows what they’re doing.

There are many great floor plan funding companies out there, but only a few that we’d call ‘the best’.

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When choosing the right company for your needs, it's essential to consider who uses financing and why.

Small dealerships often rely on financing to purchase inventory, which can be a significant investment.

Large dealerships also use financing to expand their business and grow their inventory.

Dealerships that travel to purchase inventory often use financing to cover the costs of transportation and storage.

If you're looking to expand your business, financing can be a great option to add more inventory and increase sales.

Dealerships seeking to grow their business often use financing to upgrade their equipment and improve their operations.

Here are some types of dealerships that commonly use financing:

Floor plan financing is a revolving line of credit that allows dealers to obtain financing for the goods they sell. This type of financing is made against a specific piece of collateral, such as motor vehicles or machinery.

The average term for a car being on the dealers' lot is within 30-90 days. This means that the dealer has a relatively short period of time to sell the vehicle and repay the loan.

The lender registers liens on the vehicle, and when the vehicle is sold, that lien is removed. This is a common practice in floor plan financing.

Dealers are subject to rigorous audits of their inventory to ensure that the financed vehicles are still on the lot and haven't been sold. This includes checking VIN numbers, validating insurance, and conducting random inspections.

In a floor plan agreement, the lender provides a revolving credit balance to the dealer, which is used to purchase inventory from the car manufacturer. Each piece of inventory is financed through the floor plan agreement and used as collateral.

Each time a vehicle is sold, the dealer repays the advance with interest, paying off the inventory that was sold and keeping their profit. This process is cyclical and repeats itself continuously.

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To find and obtain financing through a floor plan financing company, you'll want to look for firms that are properly funded and know how to collateralize inventory through proper legal documentation and registration.

Dealers with a proven track record and financial viability can command larger floor planning facilities, so it's essential to have a solid business history and financial stability.

Lenders typically register liens on the vehicles, which are removed when the vehicle is sold, allowing the finance firm to charge interest over the 30-90 day period.

Finance companies also conduct rigorous audits of the inventory to ensure the vehicle is still on the lot and hasn't been sold without the loan being repaid.

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Finding dealer loans can be a crucial step in getting your business up and running. Many unit stocking plans appear to be the same on the surface, so it's worth taking the time to thoroughly examine them to ensure you're receiving the best deal.

To make an informed decision, consider the following factors. The percentage of the vehicle's value that the funder will provide is a key consideration. Does this include VAT on qualifying vehicles?

The funding period is also important to consider. Typically, the finance runs for 120 to 150 days, but the best period for your business will depend on your average stock turnover.

Some floor plan financing companies offer additional tools and services, such as stock management and reporting software. This can help you stay on top of your inventory and make more informed decisions.

Here are some questions to ask when reviewing your floor planning financing:

Maintaining the confidence of the lender is essential to securing a good deal. This means ensuring that stock inventory audits are frequent, accurate, and provide the level of detailed information required by funding providers.

Obtaining additional financing for car dealerships can be challenging due to their high-risk nature, with lenders considering them high-risk due to thin profit margins, large ticket items, seasonality, high sales volatility, and rapid depreciation of inventory value.

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Car dealerships were hit hard during the great recession, with thousands closing each year, leading to a problem called "sales out of trust" or SOT, where dealerships sell vehicles but don't repay the inventory advance amount.

Floor planning is a common financing option for car dealerships, allowing them to purchase inventory with a loan or line of credit from a floor plan finance company, which they repay when the vehicle is sold or the loan matures.

The auto industry has dealerships of every shape and size, each with unique needs and customer bases, and financers can customize floor plan financing agreements to meet these needs.

Here are some reasons why obtaining car dealership loans from traditional banks can be difficult:

Automobile dealerships use floor plan financing to acquire inventory by taking a loan or line of credit from the floor plan finance company to buy cars.

Dealerships can purchase cars at an auction or outside an auction to fill their lot with floor plan financing. The dealership repays the lender when the vehicle is sold or the loan matures, whichever comes first.

Financers like Floorplan Xpress can customize the terms of an agreement to meet the needs of the car dealer, taking into account the unique needs and customer bases of different dealerships.

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Auto Use is partnered with over 500 Auctions across the country to make buying and sourcing inventory as easy as possible.

Floor plan financing allows automobile dealerships to acquire inventory without having to pay upfront, which can be a huge advantage for dealers with limited cash flow.

Automobile dealerships use floor plan financing to acquire inventory, and they can take a loan or line of credit from the floor plan finance company to buy cars at an auction or outside an auction.

The dealership then repays the lender when the vehicle is sold or the loan matures, whichever comes first.

Financers that offer floor plan financing, like Floorplan Xpress, can often customize the terms of an agreement to meet the needs of the car dealer, which is especially helpful for dealerships with unique needs and customer bases.

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Direct dealer funding can be a game-changer for your dealership's cash flow. You may be sitting on thousands of dollars that you could use on other aspects of your business.

To free up some of that cash, you can floorplan your current inventory. This means that you can use the value of your existing vehicles as collateral to secure a loan or line of credit. The funder will provide you with a percentage of the vehicle's value, which can include VAT on qualifying vehicles.

The percentage of the vehicle's value that the funder provides can vary. It's essential to examine the different unit stocking plans to ensure you're receiving the best deal.

Here are some key questions to ask when evaluating floor plan financing companies:

Maintaining the confidence of the lender is crucial, so ensure that your stock inventory audits are frequent, accurate, and provide the level of detailed information required by funding providers.

Floor plan financing is a short-term loan or revolving line of credit from a floor plan financing company, such as Floorplan Xpress.

Dealerships use this financing to buy and sell vehicles quickly without disrupting their cash flow.

The loaned money is repaid as the dealership sells vehicles, along with interest and fees.

Financing is a crucial aspect of various industries, including the auto industry. It allows businesses to access the funds they need to operate and grow.

A type of financing called floor plan financing is particularly useful for car dealerships. They receive a short-term loan or revolving line of credit from a financing company.

This type of financing allows dealerships to buy and sell vehicles quickly, without worrying about disruptions to their cash flow. They repay the loaned money, plus interest and fees, as they sell vehicles.

Floor plan financing is a great way for dealerships to gain fast and flexible financing, making it easier for them to make a steady profit.

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So, you're wondering what financing is all about? Financing is essentially the process of obtaining funds to cover the cost of a purchase or project.

Financing can be obtained through various means, such as loans, credit cards, or even crowdfunding. Financing options can be categorized into secured and unsecured loans, depending on whether collateral is required.

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Secured loans typically have lower interest rates and longer repayment periods, as the borrower has provided collateral to secure the loan. Unsecured loans, on the other hand, have higher interest rates and shorter repayment periods, as they are riskier for the lender.

Loans can be further divided into two types: short-term and long-term loans. Short-term loans have shorter repayment periods, usually ranging from a few months to a few years, while long-term loans have longer repayment periods, often spanning several years or even decades.

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Dealership operations can be complex, but floor plan financing helps simplify the process. Dealerships use floor plan financing to acquire inventory, which means they can take a loan or line of credit to buy cars.

The terms of the agreement can be customized to meet the needs of the car dealer, which is a big plus. Financers like Floorplan Xpress can work with dealerships of every shape and size.

Dealerships need to repay the lender when the vehicle is sold or the loan matures, whichever comes first. This is a standard practice in the industry.

Car dealerships have unique needs and customer bases, which is why financers can offer customized terms. This flexibility is a key advantage of floor plan financing.

NextGear Capital is a well-established player in the dealership floor plan industry, with over 23,000 dealers and 10 years of experience under its belt. They offer both retail and wholesale financing options, making them a go-to choice for dealerships.

Their floor plans are designed to be flexible, allowing dealers to finance retail, wholesale, salvaged, and rental units. This flexibility is a major advantage for dealerships that need to manage a diverse inventory.

NextGear Capital's customer service team is dedicated to helping dealers overcome challenges and achieve success. They offer a simplified funding process for non-auction purchases, records management with custom imaging and cloud-based solutions, and collateral protection, remarketing services, and resources through Cox Automotive.

Their floor plans are tailored to meet the specific needs of each dealership, with options like Tiered Pricing, First Gear, and Flex Pricing. This means dealers can choose the plan that works best for their business.

Here are some key benefits of using NextGear Capital:

NextGear Capital's commitment to customer success is evident in their dedicated support team, which includes a Portfolio Manager and Customer Service team. This support team is available to help with everything from tracking down titles to answering questions about the Account Portal.