An entity dealing in products through the dealership model, arranges dealer financing facilities to its customers for the purchase of its products. With the provision of this facility, there is a marked increase in sales of the products.
Dealer financing is a type of loan that is set in motion by a large or global company for its dealers to increase the inventory holding capacity of the dealers and reduce the transportation cost. For the provision of huge inventory of branded products, the dealers need a huge amount on hand and depending on their financial position they may not be eligible to avail such amount of finance from the banks or financial institutions.
Dealer Financing gives relief to the dealers as they do not have to approach a financial institution separately and at times, they can get higher finance as compared to their normal eligibility and at better interest rate. A lot of hassle in the form of follow-ups and coordination is also saved for them.
Large companies as well as dealers have gained immensely by arranging dealership finance.
But Dealer Financing is not a cake walk, and it requires some amount of expertise in structuring it, as there are no normal norms for such financing. It requires lots of liaison and negotiation to set up such structure at an Anchor Level.
ABV could prove you to be a strategic partner in setting up such structure and advise you on what the most beneficial terms can be and also work towards getting them for you.