One of the most important factors for a BHPH dealership's success is having capital on hand to keep cars moving on and off the lot.
There are several benefits you can expect once you've decided to work with a capital provider. Using a capital provider also helps dealerships save money by allowing them to better forecast their income. In addition to having more time from not skip tracing, this also ensures that they will have a steady cash flow coming in. Having a steady stream of income will allow dealerships to plan out their own payments and expenses, while also allowing them to invest wisely and get better deals on their car sales and loan terms. It is crucial that dealerships are allowed the freedom to build their brand without the risk of insufficient cash flow. In this competitive marketplace, businesses must use their resources and time to grow their brand, less they be left behind.
Dealerships, especially new ones, have quite a lot of risks involved with their business. There is always a risk of damaged cars, the risk of payments not being made, risky investments, and the risk of lawsuits, not to mention state by state regulations. Any of these risks can end up costing dealerships a fortune. Luckily, a capital provider can alleviate some of these risks and, potentially, save money. As discussed earlier, a provider will ensure that payments are consistently made with strict compliance to a myriad of regulations. By using a provider, a dealership could leverage their existing portfolio to use funds that they would not have had access to otherwise.