There are many reasons why dealers may operate in cash as opposed to credit. Whether it is the way you’ve always done things or because you have had bad experiences with banks or floorplanning companies, we understand why you may be apprehensive to use a line of credit for inventory purchases. For your dealership, we want to provide you with some information that will help you make the most informed financial decisions.
First, we must acknowledge the reasons why many dealers operate in cash instead of credit. Poor internet access and comfortability with using the internet, in general, is the first reason some dealers may bypass floorplanning experiences. If you are apprehensive about the use of computers and modern programs, partnering with a floorplan company and getting a line of credit may seem scary or risky.
At Kinetic Advantage, we try to combat that fear by being transparent with you about our terms, conditions, and plan offerings. We also have an entire department dedicated to serving our dealers, both current and potential. Their sole purpose is to assist dealers and provide impeccable service.
Another reason dealers may choose cash over credit is because of the minimal desire to change long-standing business practices. You may think to yourself, “this is the way we’ve always done things”. And while that may be true, it doesn’t necessarily mean that it’s the best way to do things.
The world is becoming less and less dependent on cash, as digital payment methods emerge offering more flexibility. While the market continues to change, you may not be able to keep your inventory up to date just by using cash. Consider ways you can balance your cash usage with credit usage. Would It be better for the future of your business to have a backup plan or an alternative way of purchasing inventory?
As our economy experiences downfalls and setbacks, some dealers have convinced themselves that it is better to simply survive, as opposed to thriving and focusing on growth. Having access to credit means access to more inventory. Kinetic also goes a step further to offer additional resources to help you succeed. How can your dealership thrive as opposed to just surviving?
With this information, it’s our hope that some of your reservations about floorplanning have subsided. Kinetic Advantage seeks to establish a partnership with our dealers. When they succeed, we succeed. Extending lines of credit to our dealers is a part of that success strategy.
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