Stocking Finance

[AHCARS 0]

Hi All,

I run a 'non traditional' dealership in that I don't have a forecourt, but work from serviced offices with use of a very large adjoining car park. We have 24 hour security presence in the building and car park, and there are also some very large head offices of major companies in the same hub. We provide all dealer facilities, i.e. finance & warranty, and are VAT registered and authorised by the FCA.

The business has been trading for just over a year but I'm really struggling to secure a stocking facility, primarily because of the set up I'm told. I've approached both BCA and Nextgear, and although I quickly got a response from Nextgear stating I'd passed all checks but they weren't comfortable with the set up, BCA have taken almost a month and are yet to get back to me, despite me constantly chasing the 'area rep' that is supposedly dealing with my case. I know this is clearly not a good sign but am really surprised at BCA's lack of professionalism as it seems they'll only engage with the dealers they'll approve and not even bother giving a decision to those that they won't. 

I'm struggling to grow the business organically as I feel I'm running at 100mph on a treadmill going nowhere. Market conditions have been pretty poor over the last few months and it may not be viable for me to continue without having access to a wider variety of stock.

My question is, are there any other stocking facility companies that might be able to help someone in my position? My personal credit and bank account conduct are both fine but I obviously don't want to get ripped off. Any suggestions or advice will be greatly appreciated.

 

Thanks in advance for any help.

[justina3 518]

Have you seen the rates these kind of firms charge ? have you looked at other sources of funding 

[SC Derby 259]

How much funding are you looking for?

[AHCARS 0]

I think any less than £30K would be pointless but I would consider a lesser amount if I could make it work.

justina3 I'm not sure what other viable options there are.

[Mat C 77]

Try IWOCA -  ( Instant working capital )

Expensive but if you want to borrow £20k for a few days etc it works out great for me. Just helps with cash flow.

I also use BCA now too but have a slightly different set up than you ( run from a small secured unit ) 

[justina3 518]

Re-mortgage something rates are almost give away these days, thats what i did last year rates so low you can pay it back treble quick

 

[AHCARS 0]

8 hours ago, Mat C said:

Try IWOCA -  ( Instant working capital )

Expensive but if you want to borrow £20k for a few days etc it works out great for me. Just helps with cash flow.

I also use BCA now too but have a slightly different set up than you ( run from a small secured unit ) 

Thanks - I'll see what they offer and it's a viable option.

Appreciate the advice.

1 hour ago, justina3 said:

Re-mortgage something rates are almost give away these days, thats what i did last year rates so low you can pay it back treble quick

 

Not an option I'm afraid. I sold my house (due to marital issues) a year ago so I'm no longer a home owner. 

[trade vet 702]

On 24/05/2017 at 1:02 PM, AHCARS said:

Hi All,

I run a 'non traditional' dealership in that I don't have a forecourt, but work from serviced offices with use of a very large adjoining car park. We have 24 hour security presence in the building and car park, and there are also some very large head offices of major companies in the same hub. We provide all dealer facilities, i.e. finance & warranty, and are VAT registered and authorised by the FCA.

The business has been trading for just over a year but I'm really struggling to secure a stocking facility, primarily because of the set up I'm told. I've approached both BCA and Nextgear, and although I quickly got a response from Nextgear stating I'd passed all checks but they weren't comfortable with the set up, BCA have taken almost a month and are yet to get back to me, despite me constantly chasing the 'area rep' that is supposedly dealing with my case. I know this is clearly not a good sign but am really surprised at BCA's lack of professionalism as it seems they'll only engage with the dealers they'll approve and not even bother giving a decision to those that they won't. 

I'm struggling to grow the business organically as I feel I'm running at 100mph on a treadmill going nowhere. Market conditions have been pretty poor over the last few months and it may not be viable for me to continue without having access to a wider variety of stock.

My question is, are there any other stocking facility companies that might be able to help someone in my position? My personal credit and bank account conduct are both fine but I obviously don't want to get ripped off. Any suggestions or advice will be greatly appreciated.

 

Thanks in advance for any help.

You need to show your first years set of accounts if you want to take on some debt.Regarding being on a treadmill,cannot get ahead etc.,get used to it....most of us have been doing that for years.I am not trying to put you off,but if you search free company check for dealers you know and who you think are  successfull,check their liabilities and you will get the picture ! Your business model sounds OK to me,see if you can get know a transport manager at one of those large companies and you might get some cheap stock and transform your business.

 

 

[AHCARS 0]

20 hours ago, trade vet said:

You need to show your first years set of accounts if you want to take on some debt.Regarding being on a treadmill,cannot get ahead etc.,get used to it....most of us have been doing that for years.I am not trying to put you off,but if you search free company check for dealers you know and who you think are  successfull,check their liabilities and you will get the picture ! Your business model sounds OK to me,see if you can get know a transport manager at one of those large companies and you might get some cheap stock and transform your business.

 

 

Thanks for the advice. You're right, a lot of other dealerships seem like they're flying when in reality they're probably drowning in debt.

[BHM 994]

Try cutting your cloth to suit, if you can't afford your stock then you either need to;

1) source better priced cars (I know, virtually impossible!)

2) purchase cheaper vehicles.

3) close the doors & pack the job in.

You certainly shouldn't compare yourself with many of your peers, unfortunately many in this game are kidding themselves & are up to their neck in debt, paying too much rent for crap premises & pretending to be the big man driving around in a newish Mercedes or BMW financed up to the hilt - no different to a mug punter in all honesty.

Edited May 28, 2017 by BHM
Incorrect wording.

[Leekent 2]

Sorry to drag up an old thread but out of interest what kind of security do these firms like close brothers and next gear capital require for a stocking facility? 

[Grantlfc81 88]

Blue motor finance will be offering in the next few months

[David Horgan 564]

My advice would be to change your stock profile , if its standing still on its own then borrowing money wont help will it ? 

All it means is you need a faster burn rate of sales , more bites at the cherry pot , more profit per unit , all goes to changing stocking profile as you have to much money tied up in too few cars . 

Regards Stocking loans ; 

paying these set ups is expensive in the long run , they make it sound cheap but its not . seen some sound little business go down because of these guys . Know some floating in Heaven but haven't a clue its closing in on them 

Finance companies will lend stocking money but want reciprocal business , always wondered how that works myself . How does it go if customer wants to pay cash , " er no Mr Customer has to be finance " doesn't work in reality does it . 

I'm old school though so Know NOTHING , don't listen to me .