Business funding for independent car dealerships
Buying inventory, reconditioning it and covering the lot rent while cars sit unsold puts real pressure on cash even when sales are steady. Floor plan financing is a specialized product tied to the vehicles themselves, and it is not something we generally arrange; what we refer for dealerships is working capital, a line of credit or a term loan, unless a lender in our network happens to offer floor plan lines.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Reconditioning vehicles before they go on the lot
- Covering lot rent and payroll between sales
- Buying equipment like a lift or detail bay setup
- Marketing and website costs to move inventory faster
What usually fits
Products that usually fit
- Line of credit for reconditioning and lot costs that come and go with inventory turns.
- Working capital for the gap between buying a car and selling it.
- Term loan for equipment or a lot expansion.
- Equipment financing for shop and detail equipment.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A dealership draws $35,000 on a line of credit to recondition a batch of trade-ins and repays it as the cars sell over about 3 months. At an illustrative 10-20% a year, simple interest for those 3 months runs roughly $875-$1,750, and the limit is available again for the next batch.
Being honest here: this is not a floor plan line against the vehicles themselves. We are referring general working capital, sized to what the lot's cash flow can support.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly bank deposits and how they line up with inventory turns
- Dealer licence and lot size
- Existing floor plan or inventory financing already in place
- Time in business and owner credit
- How reconditioning and lot costs are currently being covered
Honestly
Who this is not for
- A dealership expecting us to arrange a floor plan line: that is a specialized product we do not generally provide
- A brand-new lot with no sales history yet
- Borrowing short-term money to carry inventory that is not turning
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Car dealerships funding questions
Do you arrange floor plan financing?
Not as a rule. Floor plan lines are a specialized product tied to vehicle titles, offered by specific lenders. We can sometimes refer one if a lender in our network offers it, but our main lane for dealers is working capital, a line of credit or a term loan.
Can a new dealership get working capital?
Most lenders want some months of bank deposits and an active dealer licence. Tell us your situation and we will say honestly what is realistic.
What do lenders check for a dealership?
Bank deposits, licence status, lot size, existing inventory financing and owner credit.
Can I finance detail bay or shop equipment separately?
Yes, equipment financing is often a cleaner fit for that than a general line of credit.
Guides
Guides for car dealerships
Related
Similar businesses
Trucking · Auto repair · Towing · Auto body · Limo & transport services
Where we work: all US states · all Canadian provinces
See your options
Two minutes, no credit pull, no fee. We come back with real options from lenders that fit.