A problem most used car dealers will face, especially in South Africa, is how tough it can be to find financingwith terms that work for your used car business. This can be a make or break factor for your used car dealership. Floor plan financing is a great option for used car dealers looking for better financing terms.

What is Floor Plan Financing?

Floor plan financing is a type of lending where a dealer can borrow money against the value of the cars and inventory they have on their lot. This allows dealers to keep more cars on their lot, and offer their customers a wider selection of cars.

Benefits of Floor Plan Financing

There are many benefits of floor plan financing for used car dealers. Some of the most notable benefits include:

  1. Increased Cash Flow – By financing your inventory through a floor plan lender, you can improve your cash flow by having the inventory financed. This will free up your cash flow to use for other purposes.
  2. Improved liquidity – A floor plan lender can provide you with the liquidity you need to grow your business. This will help you to expand your inventory and grow your business.
  3. Improved Credit Rating – A floor plan lender can help you to improve your credit rating by providing you with the financing you need. This can help you to obtain other financing in the future, potentially for larger amounts, such as when you may need to invest in larger premises as you grow.
  4. Increased Efficiency – A floor plan lender can help you to increase your efficiency by providing you with the financing you need to buy inventory. This will help you to sell more cars and improve your bottom line.
  5. Achieve Stock Plan Objectives – do you have specific stock plan goals you want to achieve in your used car dealership? Floor plan finance gives you quicker access to cash and gives you the power to make purchase decisions when it comes to acquiring new stock for the floor.

What Finance Options Are Available To Me?

Traditional bank loans or business loans can take too long to be approved and you may miss out on acquiring new stock for your used car dealership floor. Specialised car dealership floor plan finance provided by floor plan financing companies, fast-tracks your application for quicker approvals to give you the purchasing power to acquire stock as and when you need it.

Our finance partners offer a fast-track solution to get up to R150 000 cash in your hands as fast as possible to help you buy stock as you find it. Apply for floor plan finance now.