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By Deal Pack - July 20, 2012
In a word: CASHFLOW! Or is that two words (cash flow?)…either way, it’s the biggest benefit to financing your vehicle inventory (commonly called a floor plan).
Unless you’ve discovered the ever elusive money tree I’ve heard about all my life, you likely need some assistance when it comes to purchasing inventory for your BHPH operation. There are plenty of lenders that are willing to finance the inventory you need to purchase. These are commonly short term loans that are paid back when the inventory is sold.
Do your research and ask a lot of questions to be sure you’re getting the best deal from your lender, and to make sure you completely understand the repayment agreement. While financing your inventory is a great way to get cars on the lot without breaking the bank, it always costs something to borrow money. Here are some questions you should ask when researching potential lenders:
What is the interest rate?
What are the associated fees?
What happens if I’m unable to sell the vehicle?
Does the lender pay me or the auction directly?
Is there a time limit on the repayment plan?
How do I manage my floor planned inventory?
Do I need to insure the inventory against theft or damage?
Once you begin borrowing against your inventory, you may be wondering how to keep track of the ins and outs of new floor plans, curtailments, and payoffs. That’s where your DMS should step in and make the process as understandable and painless as possible. Deal Pack not only accounts for floor planned inventory using real-time, fully integrated accounting, it also provides reports, training, and support. Floor planning at time of purchase? Need to finance a unit after you’ve already purchased it? No problem! Give us a call anytime to learn more!
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Advanced Business Computers of America (ABCoA) develops and supports end-to-end software solutions for the subprime finance industry. Since 1983,
we have helped automotive dealerships and finance companies eliminate duplication, remain compliant, and achieve success with dependable, all-in-one software and white glove service and support.
Deal Pack is a complete, all-in-one software ecosystem customizable to your exact needs and scalable to your exact size - helping improve your operations, grow your business,
and solve the challenges you face. Whether you are a finance or sales company, multi-entity or publicly traded company handling BHPH or LHPH, operating or capital leases,
internal or external floor-planning, retail, rentals, consumer loans, origination, or seasoned paper, Deal Pack is the dependable software for mission critical operations.
Deal Pack handles all of your business needs transparently – providing you measurable improvements and complete financial control, saving you time,
increasing your bottom line, and allowing you the freedom to focus on your daily operations. Deal Pack is relied upon by thousands of customers across
all 50 states in the United States and six countries around the world. Customers properly using Deal Pack have never lost an IRS audit.
To learn more about ABCoA, visit www.abcoa.com.