Interest Expense Analysis & Rate Reduction
Consider an Inventory interest expense analysis
and reduce interest rates
For the vast majority of dealerships in the RV, Marine and Powersports industries, one of the largest expenses incurred is inventory floorplan interest charges. Dealerships that have experienced reduced sales, slower turns or fell into the trap of ordering too much inventory, find out very quickly how heavy the burden of floorplan interest expense really is.
Many dealers are under the assumption that the interest rate they are charged by their floorplan lender, is the same rate all other dealers in the industry are charged. That is not accurate. While your floorplan lender may have a standard rate, not all dealers are charged that rate. Some dealers are charged less while many dealers are charged more. There are also many dealers who think they have one interest rate they are charged for floorplanning. Again, that is not accurate as a dealer will be charged a higher interest rate on floorplanned inventory that is considered “due in full”. Most dealers have some level of “due in full” inventory so those dealers who are in that situation, they are being charged 2 different interest rates.
With over 16 years of experience within the inventory finance industry encompassing positions of Senior Account Executive and Branch Manager, we understand how and why floorplan companies charge the interest rates they do. By analyzing various indicators of your business operations and financial performance, we will be able to advise you if you are in a position to present a strong case for your business to negotiate a lower interest rate. We will work with you in these negotiations that can save your business thousands of dollars annually. If it is determined that your business is not currently in a position to qualify or negotiate a lower interest rate, we will provide a report outlining why a request for lower rates isn’t justified and we’ll also provide solutions and suggestions to help your business get into a position where lower interest rates are justified. Our fee for the initial analysis is a very reasonable $350.00. If we do proceed to negotiate a lower interest rate for your business, we would charge a nominal commission only if we are successful. You have nothing to lose and everything to gain… and save.
Take the first step in reducing your operating costs and add profit to your bottom line. Contact us today and we'll send you an application along with terms and conditions to start the process.