There are more drivers on the road now than ever before. The need for affordable used cars has led to steady growth within the used car sales industry. Great news for the used car sales companies, however, the need to keep up with demand and competition means it is essential to keep a vast range of cars in stock. To purchase new stock a company may need access to funds at short notice - if cashflow is tight, can the traditional lenders offering commercial loans really step up to meet your lending needs?
Low stock needed replenishing fast
We were recently approached by a Director of a multi-site used car sales company, who faced a similar predicament and was enquiring about business loans in an emergency. The company was running low on stock and needed to replenish it as soon as possible during a period of tight cashflow. The profits from the sale of the stock was needed for the company to trade out of its issues, but with their position worsening, the company’s bank was apprehensive of lending. Other traditional lenders were approached, but a drawn out application process was less than desirable in the circumstances. Unless the company could purchase new stock fast, it risked having to cease to trade as it could not afford to pay staff when there were no cars for them to sell. Furthermore, having next to no cars on the forecourt was turning customers away, causing the company into a downward spiral.
As a small lender we have greater flexibility and can lend quickly
The company was in need of a straight forward, short term business loan to replenish its stock of cars, and having the cash available as soon as possible was of high importance to the Director.
After reviewing the company accounts and cashflow, we were able to agree to lend the amount required over a period of three months. The business loan was transferred to the company’s bank account within 24 hours, meaning that the company could purchase the stock needed and get trading back on the right track.
Unlike traditional lenders we take time to understand the individual needs of each company that approaches us for help, allowing us to tailor our loans to meet their business needs. We do this by looking at the viability of the company, what the money is needed for and whether we can see a business case for the lending. As a small lender we have a greater level of flexibility and will do what we can to lend to businesses we genially believe have potential, and the ability to repay the loan. Cashsolv prides itself on being able to find a solution where others can’t. Offering quick business loans can sometimes be the only help the company actually needs.
With the loan and the business advice also provided by Cashsolv, the Director was able to get back to selling cars and running the business rather than focusing on the temporary cashflow problems. His attention could move from simply surviving to turning the company around and focusing on the future.