1) Diversify your funding sources
Using a variety of funding sources when buying stock is healthy because it keeps your business flexible without the risk of putting all your eggs in one basket. There are loads of options out there including captive and non-captive finance options. Use them all if possible but use them smartly.
2) Keep on top of costs
Make sure you’re not funding your stock in a way that could leave you flat-footed if the market suddenly changes. Always keep your costs at the front of your mind and ensure you have those cash reserves just in case.
3) Keep the cash flowing
When buying stock, make use of the funding options available to you so all your cash isn’t tied up in the metal on your forecourt. Agility and flexibility are key in times of uncertainty so making best use of the funding options available to you will help.
4) Do the basics well
In times like these it’s just as important to make sure your business is secure for the future as much as the present to be in a good position to maximise business when things return to normal. In order to do this, make sure to keep on top of any repayments you have and only fund stock that you are confident you can shift.
5) Ask for advice
Whichever way you choose to fund the vehicles on your forecourt, it’s important to seek out expert advice. We appreciate that you won’t always use funding platforms like NextGear Capital, but we’re part of a large organisation with a view of the whole market and we are keen to help dealers through the good and the bad times.