Finding the right financing for your business does not need to be a struggle, no matter what industry you are in. While a bank or credit union might be among your first choices, independent financing companies have their own benefits that could be more useful to your business and its goals. If you are a dealership or retailer in need of floor plan financing, there are plenty of reasons to go the independent financing route as opposed to a traditional bank.
Greater Range of Accessibility
While floorplanning is useful for dealerships in a variety of ways, getting the floor plan financing you need can be a challenge. This is especially true if you are starting a new business. Since the Great Recession and now as the COVID-19 pandemic winds down, banks and credit unions are becoming more selective to who they give loans to; of those lucky enough to get any small business loans, those amounts are getting smaller. Coupled with layers upon layers of compliance and regulatory rules, loan accessibility for small businesses is drying up fast.
Independent financing companies are still regulated and have compliance requirements as well, but they have a bit more leeway that allows them greater accessibility and flexibility for those in need of financing. In turn, these kinds of companies and the loans they offer are a better fit for what you might be looking for, especially if you have tried and failed to get financing through your bank.
There are independent financing companies for every type of market, including floorplanning. Though some companies might choose to be generalists, others specialize in a specific kind of financing in order to remain competitive. In doing so, they strive to provide the best services and options to their customers.
Banks may offer floorplanning services but consumer and commercial banks are beholden to their shareholders and boards of directors. While traditional banks offer a wide variety of options, services that are not as profitable as key decisions want can easily be cut. In other words, your bank might offer floorplanning one year then get rid of it the next, cutting off their customers’ lines of credit and leaving them scrambling to secure new funding.
Because an independent floorplanning company is built around floor plan financing, these scenarios are much less likely to happen.
Incentivized to Constantly Improve
Like any industry, good businesses are constantly striving to be the best at what they do. Whether it is offering better customer service, commanding better knowledge in their field, or providing a range of high-quality solutions, the end goal is to be more valuable to the customer. Where traditional banks have to keep a wide group of people in mind to remain competitive, independent floorplanning companies have the advantage of needing to only focus on customers who need floor plan financing. In other words, they are incentivized to be the best in their specific field.
Since floorplanning is their business, these independent companies will change their model and strategies to fit current market trends and industry needs. Because this is all they do, they are much more skilled at determining how to best interpret those needs and solve their customers’ problems. For instance, some companies might adjust curtailment schedules to give more time to dealerships who might be struggling such as during a pandemic, recession, or other large scale event.
In times of uncertainty, it is also important to work with talented experts who best know how to navigate these situations. Who better to ask than those who only focus on solving the problems you need help with?
With that in mind, come talk to Floor Plan Xpress today if you are interested in learning more about our floorplanning options. Whether you are just starting out or have been in business for decades, come work with the best so that we can help your business be its best.