We are pleased to announce that we are funding car sales, car dealerships and used car salerooms across the UK with our merchant cash advance product. There are many ways you can raise finance to help grow your car sales business including bank loans, secured commercial loans, mainstream finance and other traditional forms of funding options. But they share many disadvantages between them.
Traditional lending can see strict lending criteria, long-winded application processes, formulation of business plans, the requirement for you to offer security (possibly a home or commercial asset), charges, penalties and extra fees and so on. It can be a minefield to find the right type of finance deal for your business.
So how does a Car Sales Business Loan with us compare to an ordinary bank loan?
A car sales business loan works by allowing you to raise a similar amount of funding to your monthly card turnover. In some cases, lenders will advance your business a larger sum close to the equivalent of your total business turnover including cash and card transactions.
How do you repay?
Unlike traditional finance where you pay off a set agreed amount of money each month a car sales business loan advance allows you to repay a percentage of your future card sales. In other words, you repay as you make sales on your customer credit and debit transactions. This amount can be on average from 10% plus i.e. you make a sale of £100 on your card transaction and £10 is repaid to the lender.
How is the loan calculated?
Most funders work on a factor rate. This on average fluctuates depending on business risk etc from 1.23 plus. In other words, a business looking for £10,000 would repay £12,300 and a business looking for £50,000 would repay £61,500. This factor rate value can change – sometimes lower, sometimes higher so it is good to use our services to make sure you receive the best market leading factor rate.
By using a cash advance your car dealership won’t feel the pressure of meeting strict monthly repayments. If your business is seasonal you may experience lower sales across a period. Therefore your repayments would fall in line with your cash flow and they too would be lower for that period.
How can I find out more?
Talk to our team today and we can advise on how we are helping more and more car sales and dealerships find the funding they need to grow and free up cash flow.