The client is a car dealership in Norfolk who has experienced rapid growth since they became
The dealership offers a variety of finance options including part-exchange, as well as MOT and servicing. The average price per vehicle stocked sold for between £5,000 and £10,000.
The business has experienced rapid growth since its inception in 2011 but recently reached a crossroads.
The business was consistently selling approximately two-thirds of their stock on a monthly basis and wanted to increase the amount of stock they held. This would have a significant impact on their turnover and profits. However, they were unable to free up enough capital to do this themselves.
In addition, the business had a very expensive and inflexible motor-stocking arrangement with a competitor, which was affecting their ability to free up cash-flow for other areas of the business.
To continue their impressive growth, the business wanted to enter the commercial market - providing a range of vehicles for businesses. At the time, the dealership was unable to enter this market because they were unable to generate the capital to purchase the stock.
By taking the time to understand the client’s existing financial requirements and issues, as well as working with the client to understand their future business goals and what they needed to do in order to achieve these, Access Commercial Finance was able to provide the perfect solution.
Access Commercial Finance provided a very cost-effective and flexible motor-stocking service, which was perfect for this client’s requirement.
A £50,000 motor-stocking facility was agreed with the client - this was completed within 1 week of the initial alternative finance enquiry.
The motor-stocking facility immediately allowed the business to purchase more stock and, because of their quick turnaround time, their results have dramatically increased. This has had a very positive impact on the business’s bottom line figures both in terms of turnover and profit.
The business has now been able to pay off their existing facility, allowing them to free up cash to invest in the commercial market. The client has now come back to us for additional finance - we have agreed a facility size of £80,000 to further support the business.