Stocking Loans for Car Dealers
Having a wide selection of cars for sale is essential for a car dealership, however, buying all those cars costs a lot of money, and car dealer stock funding can provide the solution. Specifically designed for car dealers, this loan allows them to purchase cars for their businesses. By doing so, dealerships don’t have to use all their cash reserves to buy cars.
Guy Prince, our director at First Oak Capital, understands this scenario well. As someone who has spent 30 years in the motor trade, he knows exactly what it takes for a dealership to succeed. With this knowledge, we created a straightforward and flexible way for dealers to access funding. It allows dealers to buy cars with enough cash to cover other business needs.
The stock funding we provide helps dealerships keep their forecourts filled with a wide variety of vehicles, as it helps to have a wide selection of cars to attract more customers and increase sales. As a result of Guy’s extensive experience in the car trade, we can provide your dealership with the support they need to succeed and grow.
Whether you are a main dealer looking for a large facility in the millions or an independent looking for a more modest amount, if you’re looking for ways to grow your business, expand your stock, or manage your cash flow better, First Oak Capital can help.
Stock Turn
Stock turn is a key term in the car trade. It’s all about how quickly a dealership can sell the cars it buys. The faster a dealership can sell its cars, the quicker it can buy new ones to sell. This helps to keep the stock fresh and interesting for customers.
It also means if the trade price of vehicles is fluctuating, you will be at less risk of making a loss on cars.
But for a good stock turn, a dealership needs to have enough cars in the first place. If a dealership only has a few cars, it might not have the ones that customers want. This can slow down sales and reduce profits.
That’s why having enough money to buy stock is so important. But not all dealerships have a lot of money to spare. This is where car dealer stock funding can really make a difference. With a stock funding loan, dealerships have the ability to buy plenty of cars to sell on. They can fill their forecourts with a wide range of vehicles to attract different kinds of customers.
With more cars to choose from, customers are more likely to find a car they want to buy. This can help to speed up sales and improve stock turn. And a good stock turn can make a big difference to a dealership’s profits.
At First Oak Capital, we understand the importance of stock turn. That’s why we provide stock funding loans to help dealerships buy the cars they need to sell on. We help dealerships keep their forecourts full and their stock turn high, supporting them in making more sales and increasing their profits.
Our Approach to Stock Funding
Here at First Oak Capital, we have a simple yet effective approach to stocking loans. Our main goal is to help car dealerships keep their forecourts full of a diverse range of cars. With our stock funding options, we make it easier for you to buy the cars you want to sell on, helping to attract more customers and increase sales.
As a commercial finance broker we work with many different banks and finance companies and can provide help and advice on which lender and finance product could be the most suitable for your business.
Our approach is guided by three key principles: flexibility, understanding, and support.
Flexibility: We know that every dealership is different. That’s why we offer flexible funding options to meet your unique needs. Whether you need a little or a lot of money to buy cars, we’ve got you covered. Our funding solutions are designed to adjust to your business requirements, ensuring you have the financial support you need when you need it.
Understanding: With our director, Guy Prince, having 30 years of experience in the car trade, we understand the challenges you face. We know that buying cars to sell on can be a big expense. But we also know that having a good variety of cars is key to attracting customers and making sales. That’s why we offer stock finance – to help you buy the cars you need to keep your business running smoothly.
Support: We’re not just a finance company. We’re a partner to our dealerships. We’re here to offer advice and support, helping you make the best decisions for your business. We’re here for you at every step, from applying for funding to managing your loan.
With our approach to stock funding, we make it easy for you to buy the cars you need. But we do more than just provide money. We offer a supportive partnership, with guidance and advice to help your dealership succeed.
At First Oak Capital, we’re dedicated to helping dealerships like yours succeed. With our flexible, understanding, and supportive approach to stock funding, we’re here to help you keep your forecourt full and your business booming.
The Benefits of Choosing First Oak Capital for Stock Funding
Choosing First Oak Capital for your stock funding needs comes with many benefits that extend beyond simply filling your forecourt with attractive vehicles. We offer a complete package designed around your specific needs. Here’s why you should choose us:
In-depth Industry Knowledge: With Guy Prince’s 30 years in the motortrade, we have a deep understanding of the challenges and opportunities within the industry. This means we don’t just offer funds; we offer insights and advice based on decades of experience.
Flexible Financing: We offer various funding options to suit your needs, including stocking loans secured on vehicles up to 110% of cap clean, business loans not secured on vehicles, Merchant Cash Advances (MCAs), revolving credit facilities, and term loans. Our flexibility means we can tailor a package that’s just right for your dealership.
Freedom to Source Vehicles: We understand that the ability to source vehicles from a variety of places is crucial for maintaining a diverse and appealing stock. Therefore, our funding allows you to purchase vehicles from any source—be it auctions, private sales, or part exchanges.
Extended Funding Period: We provide funding with no tie to the number of days in stock, giving you time to sell your vehicles without financial pressure. This can help you manage your stock effectively and increase your turnover rate.
Independent Retail Finance: Our stocking loans are not linked to a retail finance target. This means you are free to introduce your retail finance to any finance company you wish to and negotiate the best commission terms available to you.
Support for Established Dealerships: We require at least 1.5 years of trading and funding between £25k and £500k, ensuring we can support established dealerships with a track record in the motor trade.
Choosing First Oak Capital as your stock funding partner means you’re selecting a team with extensive industry knowledge and a genuine desire to see your dealership succeed.
Other vehicles we can arrange stock funding for :
- Motorhomes
- Campervans
- Touring Caravans
- Commercial Vehicles
- Just about anything else!
How to arrange stock funding?
Starting your journey with First Oak Capital is simple and straightforward. We’ve designed our process with car dealerships in mind, ensuring you can access the funding you need with minimal hassle. Here’s what you can expect when you choose to partner with us for your stock funding needs:
- Easy Application: Getting started is as simple as reaching out to us. You can call, email, or fill out a contact form on our website. We’re keen to learn about your dealership, your stock needs, and how we can help.
- Personal Consultation: After we receive your inquiry, a member of our team will arrange a time to chat. This conversation is all about understanding your needs and how our funding options can best support your business. We value your time, so we make sure this consultation is both comprehensive and efficient.
- Customised Funding Solutions: Using the insights gathered during our consultation, we tailor a funding package that suits your dealership’s needs. Whether it’s a stocking loan, business loan, Merchant Cash Advance (MCA), revolving credit facility, or term loan, we have the flexibility to provide the right solution for you.
- Fast Decisions and Quick Funds: We know how important it is to keep your forecourt stocked and vibrant. That’s why we aim to make decisions and disburse funds as quickly as possible. You won’t be left waiting with First Oak Capital.
- Ongoing Support: Once your funding is in place, our relationship doesn’t end there. We’ll be on hand to offer advice, discuss any changes in your requirements, and ensure our financial support continues to meet your needs.
At First Oak Capital, we see ourselves as more than just a provider of car dealer stock funding. We are your partner, committed to supporting your success in the motor trade. It’s this commitment that drives our approach and makes us a preferred choice for dealerships seeking a trustworthy, flexible, and responsive funding partner. We’re not just here to fund your stock; we’re here to help your dealership thrive.
With First Oak Capital, you’re getting a partner who understands the motor trade inside and out, who’s flexible enough to meet your unique needs, and who’s invested in your success. Start your journey with us today and discover how we can help you keep your forecourt full, your sales high, and your business growing. Choose First Oak Capital—your trusted partner in car dealer stock funding.
- Increased Buying Power: Stocking finance allows dealers to increase their purchasing power, enabling them to buy more vehicles to enhance their stock.
- Better Cash Flow Management: With a dedicated finance facility for purchasing stock, dealers can better manage their cash flow, keeping funds available for other business expenses.
- Expanded Inventory: Dealers can expand their range of stock, providing a wider choice for customers and attracting a broader audience.
- Fast Access to Funds: Stocking finance provides fast access to capital when dealers need to purchase vehicles, helping to seize opportunities quickly.
- Seasonal Flexibility: Dealers can adjust their stock based on seasons or market trends, thanks to the flexibility offered by stocking finance.
- Greater Stock Turnover: With more stock available, dealerships can achieve a higher stock turnover rate, increasing profitability.
- Improved Bargaining Power: Having readily available funds can improve a dealer’s bargaining power at auctions or with wholesalers.
- Ability to Capitalise on Opportunities: Stocking finance allows dealers to act quickly and capitalise on unique opportunities as they arise, such as an exceptional vehicle at a good price.
- Safeguard against Market Fluctuations: Having available funds to maintain stock helps dealers stay resilient against market fluctuations.
- Optimise Profit Margins: Dealers can optimise their profit margins by having the ability to purchase vehicles when prices are low.
- Business Growth: Access to stocking finance can support overall business growth, helping dealerships to expand their operations.
- Focus on Selling: With dedicated funds for purchasing stock, dealers can focus more on selling vehicles and less on financial management.
Q: What is car dealer stock funding?
A: Car dealer stock funding, also known as unit stocking, is a type of loan designed specifically for car dealerships. It allows dealerships to borrow against their inventory, providing the funds needed to purchase vehicles before they’re sold to customers.
Q: How can stock funding benefit my dealership?
A: Stock funding can provide increased buying power, improve cash flow management, enable an expanded inventory, and increase your stock turnover. It also allows you to capitalise on unique buying opportunities, negotiate better prices, and focus more on selling vehicles.
Q: Who qualifies for car dealer stock funding from First Oak Capital?
A: To qualify for secured stock funding from First Oak Capital, a dealership must have been trading for at least 1.5 years and have a requirement for a minimum £250,000 stocking facility.
Q: What types of funding options does First Oak Capital offer?
A: We offer various funding options to suit your needs, including stocking loans secured on vehicles, business loans not secured on vehicles, Merchant Cash Advances (MCAs), revolving credit facilities, and term loans.
Q: Are there any restrictions on the types of vehicles I can purchase with the funding?
A: With our funding, you are free to purchase vehicles that suit your dealership’s inventory needs, including those purchased from auctions, private sales, or part exchanges. Depending on the lender their may be criteria on the vehicle’s age or mileage.
Q: Can I purchase vehicles from auctions or private sales with First Oak Capital’s funding?
A: Yes, our funding allows you to purchase vehicles from any source, be it auctions, private sales, or part exchanges.
Q: What are the repayment terms for your stock funding options?
A: The repayment terms depend on the type of loan you choose. We offer flexible terms and will work with you to determine a repayment plan that fits your dealership’s financial situation.
Q: Are your stocking loans linked to any retail finance targets?
A: No, our stocking loans are not linked to a retail finance target. This leaves you free to introduce your retail finance to any finance company you wish to and negotiate the best commission terms available to you.
Q: What kind of support can I expect from First Oak Capital?
A: First Oak Capital provides ongoing support for our dealerships. We are here to offer advice, discuss any changes in your requirements, and ensure our financial support continues to meet your needs.
Q: What is the minimum and maximum amount I can borrow for stocking?
A: The minimum secured stocking facility we provide is £250,000. The maximum amount would be based on your dealership’s specific needs and our assessment of your financial situation. This can be £5m plus if required.
Q: Who can I contact at First Oak Capital if I have more questions or need assistance?
A: You can reach out to Guy and his team via phone, email, or through the contact form on our website. We are always ready to assist you with any enquiries or support you need.
