Many buy here pay here dealerships might think using a capital provider is just adding an unnecessary middleman whom would take away from their profits. The opposite is true, as using a capital provider can help dealerships make more money with what they already have. Using a capital provider is an investment that can pay off relatively quickly. There are several ways a provider can allow owners to make more money.
Capital providers give you the most important resource available (besides cash!): time. Since they take care of handling payments, there is no need for dealerships to waste time chasing down delinquent loans. Making sure that payments are made can be one of the slowest and most aggravating processes. This time, which would otherwise be wasted, can be put to better use by making sales and creating more inventory. Avoiding this time trap can make a critical difference in revenue, especially with a new dealership, where every minute counts. Likewise, utilizing a capital provider in the early stages of a business' life would be a smart decision. It’s true what they say: time is money.
In the case of Glenview Finance, dealers receive an upfront payment of 50% of the amount that the customer financed and then immediately start receiving 40% of every payment. This creates a situation where, after the deal is complete, the dealer has significantly more cash flow consistency, which all means more opportunity for more profit.