Although obtaining a dealer floor plan for your auto dealership may appear intimidating at first, it is actually pretty straightforward. To put it simply, floor plan financing functions similarly to a credit card designed specifically for purchasing vehicle inventory. Dealers don’t have to use their own money because of this line of credit. Instead of being tied up in inventory, increased cash flow allows dealers to spend that money on other dealership requirements.
Most companies that provide floor plan options for independent car dealers seek to make floor planning as simple and helpful as possible. Whether you are a Texas car dealer, an independent car seller in Ohio, or own a vehicle dealership in any other state, having a floor plan can be helpful to manage finances and get a head-start on business. Make sure you follow these principles before diving into floor planning:
Do Your Homework 
If you want to know if floor planning is ideal for your company, you should perform some research. For all of the tremendous benefits for their dealership, most dealers seek floor plan financing solutions.
Dealers frequently commend the time saved with floor planning, as well as the increased cash flow, since making the decision to floor plan. Dealers who acquire vehicles with cash typically have more paperwork to keep track of in order to ensure that their vehicles are legitimately purchased. When a dealer finances a car with a floor plan, they simply bid on the vehicle and place it on their credit line.
It’s also crucial to look at dealer floor plan financing options. You want to find a lender who will work with you to create a plan that meets your dealership’s specific needs. Fortunately, there are a few floor plan loan businesses that are entirely focused on providing flexible terms that meet the demands of smaller, independent dealers.
When it comes to picking a floor plan financing firm, there are numerous variables to consider. While some dealers are just concerned with obtaining the greatest prices, it is also necessary to evaluate the resources that each firm offers. Automotive Finance Company and NextGear Capital are two floor plan companies with which we frequently collaborate.
Next Step: Begin Your Application
A dealer must have credit in order to be able to employ a car dealership floor plan. Particularly, a track record of borrowing credit and repaying debt. The credit history of a dealer is important to floor plan lenders. A low credit score or certain marks on a credit history won’t necessarily prevent someone from using a floor plan, but it will most likely limit the amount of cash a lender is ready to grant to a specific dealer.
Secure Auto Dealership Insurance
To ensure that their investment is protected, auto dealership floor plan providers require you to obtain commercial insurance. Catanzaro Insurance excels in this area.
We can certainly help you with this. Not only do you need insurance, but we can also make absolutely sure you are properly covered. Every auto dealership is unique, and our knowledge will ensure that you are adequately protected at the best possible price.
We provide the State and your auto dealership floor plan company with all necessary documents, such as a Certificate of Insurance. You will receive ID Cards as soon as coverage is in effect.
Click Here to learn more about Auto Dealership Insurance and to get a quote. Or give us a call at (614) 489-8383 ext. 1 to speak with a licensed agent specialized in Auto Dealership Insurance. We are happy to help!
Start Utilizing Your Credit Line
It’s time to start using your auto dealership floor plan once insurance coverage is secured and your application has been approved!
Good news for you – many auction sites accept payment from a variety of auto dealership floor plan providers.
Free Up Your Cash – Expand Your Company
Car dealership floor plans guarantee that a dealer has enough funds to buy inventory while also freeing up cash for other costs such as property renovations. Depreciation isn’t eaten up by floor plans, and dealers don’t have to waste time at auction or waiting for checks to clear.
We hope this information is helpful and we wish you all the best in your Auto Dealership journey.
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