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.