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As a specialist SME finance lender, Grow Finance is all about ensuring that they are introducing new finance products to the market that meet the needs of consumers, and have the ability to add value to the market. As a result, Grow Finance has now launched a new product that broadens its stable of asset finance and working capital solutions, Floorplan Finance.
So, what is Floorplan Finance?
Floorplan finance enables the purchase of high-value assets required to be in a showroom to facilitate a sale via a revolving line of credit. The product was created to enable brokers to meet the needs of previously under-serviced small businesses dealers that require up to $3M in finance for new or used showroom assets.
This means that vendors, manufacturers, distributors and dealers can increase their annual sales by offering their clients more stock and better payment terms, through the new Floorplan finance offering.
The main sectors that have historically used floorplan finance are agricultural equipment, industrial equipment, recreational vehicles, marine craft, motorcycles, cars and light vehicles. Floorplan finance also covers replenishment stock, that complement the inventory on the floor.
The sales floor of a car dealership, is one of the more common ways to use Floorplan finance. Credit: Unsplash
What are the benefits of Floorplan Finance?
Firstly, you can draw with ease. Drawdown the fund you need when required with our revolving facility. Floorplan finance means you can receive your funds when you need it most, with same day funding, and be confident with the easy to use Grow Finance online portal.
You can also allow Grow to do the heavy lifting with the new floor plan finance product. Grow can facilitate the FX for overseas purchases, so that you can spend your time on your business. Grow Finance can also organise freight forwarding, shipping and customers for goods. This new product allows clients to purchase stock today, and pay for it up to 180 days later, increasing both purchasing power and cashflow.This way you’ll never have to miss out on another supplier discount or supplier incentive that is being offered again!
Lastly, floorplan finance can help you to increase your margins. Buy your stock in bulk and offer payment terms to your customer to increase your sales and margins, so once again you can take advantage of early payment discounts from suppliers.
So how does it work?
Floorplan finance is facilitated via a revolving line of credit. It is similar to a buy now, pay later model. In lieu of the dealer paying, the lender pays the upfront payments for the goods to the manufacturer or distributor directly. When an item is sold, then you will repay Grow Finance (the lender). This structure releases your SMEs cash flow, enhances efficiency and helps to increase turnover. It also supports individual stock turn cycles, by being able to order stock based on historical or anticipated demand.
Now that you know all about floorplan finance, if your SME is eligible for Grow Finance’s new floorplan finance product, and it sounds like the right finance option for you, then you can apply today.
You can easily enquire online at the Grow Finance website, and if you are eligible, you could have your approval on the same day. Or if you want to find out more, talk to the Grow Finance team today, call 1300 001420, to discuss your eligibility for floorplan finance.