Stocking finance, also known as stock funding or unit stocking, is a facility given to dealerships relating to its vehicle stock.
Stocking finance, also known as stock funding or unit stocking, is a facility given to dealerships relating to its vehicle stock. As opposed to other finance, it is specifically designed for dealerships buying and selling vehicles.
The primary purpose of stock finance is to release cash tied up in stock and increase the number of vehicles on a dealership’s forecourt to increase revenue and profits.
Stocking finance can be in respect of vehicles, cars, vans, lorries, HGVs, trucks, agricultural vehicles, and other vehicles.
Some of the advantages of using stocking finance are:
Increased inventory levels
One of the main benefits of stocking finance for companies is that it enables businesses to increase their inventory levels without tying up their cash flow. By accessing stocking finance, businesses can purchase larger quantities of inventory and hold it for longer periods of time, without worrying about the impact on their cash flow.
Improved cash flow
Stocking finance can also improve cash flow for companies. By using stocking finance, businesses can hold on to their cash reserves and use the facility to fund inventory purchases. This enables businesses to free up their cash flow and use it for other business operations, such as marketing, advertising, or expanding their product range.
Stocking finance can also give companies a competitive advantage. By having access to stocking finance, businesses can increase their inventory levels and offer customers a wider range of products. This can help businesses stand out from competitors and attract new customers.
Another benefit of stocking finance for companies is cost savings. By purchasing inventory in bulk, businesses can take advantage of volume discounts and save money on purchasing costs. This can help businesses improve their profit margins and increase their overall revenue.
Finally, stocking finance offers companies flexibility. This type of financing is typically short-term, which means that businesses can use it for specific inventory purchases and repay the loan once the inventory is sold. This enables businesses to manage their cash flow more effectively and avoid long-term debt.
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Asset finance allows you to purchase an asset for your business by spreading the cost over monthly repayments meaning you won’t need to use your working capital.
Asset refinancing is a way of raising capital against assets you hold on your balance sheet.
Asset-based lending (ABL) is a type of finance in which a business can use its assets, such as inventory and property to release working capital.
Hire purchase allows your business to buy an asset by spreading the cost over a fixed period of time with regular monthly instalments.
Invoice finance provides early access to the funds owed to you in unpaid invoices if you find your business waiting for customers to pay for your services or products.
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