What is the sales process to working with a capital provider?

After a dealership owner or manger evaluates their company’s financial situation and determines that the business model of a capital provider is best - particularly if they can't get traditional business loans - a representative will walk dealership owners through the necessary steps of transitioning the loans into Glenview Financial's care. Prior to signing on the dotted line, we’ll look at several factors that are familiar to anyone who’s applied for a financing before.

We look for dealers who have several years in the business with solid personal credit and background, and operations that are smooth and consistent. We are deeply concerned with how a dealer treats customers and great customer service is very important. Unlike other Capital Providers we don’t need much equity, as your contracts are your equity.

How does using a capital provider create more financial consistency / regularity / reliability?

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.

How does using a capital provider drive more revenue & profits from existing loans?

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.