Automotive Finance is for automobile manufacturers and related suppliers that require working capital to finance production, inventory and trade. Proceeds from Automotive Finance can be used to purchase raw materials or components, cover payroll and operational expenses as well as for acquisitions.
The most common types of automotive funding are:
- Asset Based Lending
- Supply Chain Financing
- Cash Flow Loans
- Invoice Factoring
- Real Estate Finance
The type of funding that is available to your company will depend on operating history and financial performance of the company. Companies with strong performance for the last 3 years may apply for cash flow financing which does not require the submission of borrowing base certificates or active collateral management. Companies that have had negative profits or equity can still receive funding, however, typically on a monitored basis through asset based lending or factoring.
Larger Automotive Finance credit lines are typically syndicated by one or more bank. There will be a lead agent who is responsible for administering the loan and participants who have put money into the transaction. Automotive Finance clients may be audited by the lead agent as well as by the participants individually.
While there are several forms of Automotive Finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your automotive finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies