Why a BHPH dealership should use a capital provider?

Many dealers who are in the Buy Here, Pay Here marketplace are successful at their primary objective for owning a dealership: selling cars. However, due to a variety of factors in this space, cash flow can often be a big hurdle and take up a huge amount of time to keep the doors open as well as keep cars and new customers on their lot.

By using a capital provider, BHPH dealership owners can leverage their existing portfolio to access funds that otherwise would have been inaccessible.Owners can avoid the need to take out high interest loans or make otherwise risky decisions with their money. A capital provider provides a lot more assurances that regular payments will be made to the dealership and the payment collection process is made more turn-key and taken off their hands.

The combination of consistent collections and consistent cash flow is what, allows owners and their management team to focus on selling cars, attracting new business and satisfying their existing customers that make using a capital provider such an attractive option.

Specifically for Glenview Finance customers, they receive weekly ACH payments and get real time Performance Reporting about the activity on their contracts, so they have the peace of mind that regular income is coming in and are clear on what’s happening with their customers’ accounts.

Common struggles BHPH dealerships encounter and how a capital provider can help

As the niche automotive industry that we serve continues to grow, dealership owners need other financing options to remain competitive and avoid situations that will dry up their cash flow and prevent them from moving inventory and sufficiently collecting payments.

Although becoming a dealership owner isn’t for the faint of heart, our customers know there are common struggles that they face everyday and that having a capital provider can alleviate some of those issues while at the same time achieving growth. While owners know this list could go on for a while, there are a few specific areas of focus they must always stay on top of, regardless of the size of their operation: compliance, capital and collections.

Compliance with state and federal laws and guidelines is very important and failing to stay on top of these frequently changing rules can wind up costing a small fortune if you’re caught violating just one, and any reputable, well-run operation can be shut down if violations occur. Although our services aren’t encompassing of all the compliance issues your dealership will need to know, the ones pertaining to collections will be very relevant. For many of our customers, this removes a lot of the risks and challenges associated with the collections process and we help make the laws governing this part of the business much more manageable and less likely to negatively impact business.

It’s not just the compliance of collections - again, two major factors of a dealership’s success - but having the grit and consistency to collect on all the deals that have been done in the BHPH model. It’s not enough to have a large loan portfolio - collecting, processing and of course Skip Tracing delinquent loans is a big expense and time commitment for dealerships. Having that entire function transitioned over within a capital provider deal frees up a ton of bandwidth and is well worth the cost.