Dealer stock
Stocking finance funds the cars on your forecourt, so cash is released for buying and preparing the next ones rather than sitting in unsold stock.
- FOR
- Classic car dealers
- USED FOR
- Holding stock for sale without tying up working capital
How it works
A facility is agreed against your business, then individual cars are drawn against it as you buy them.
Each car is funded for a set period. When it sells, that car is settled and the facility is freed up again.
Lenders look at the shape of your stock: what you buy, how fast it turns and what it sells for.
This is business lending to a company or a business buyer, so it is not regulated consumer credit.
What a lender looks at
- 01Accounts, and a current stock list with purchase prices and days held.
- 02Your sales history by model and by margin.
- 03Where stock is kept and how it is insured.
- 04Title and provenance on each car drawn against the facility.
Not for: Private collectors buying for their own use rather than for resale.
Questions
How long can a car sit on the facility?
Lenders set a maximum funding period per car, and extend it case by case. The period and the cost of holding stock beyond it are part of how the facilities differ.
Does the lender hold the paperwork?
Commonly, yes. Many stocking facilities hold title documents until each car is settled.
Can consignment stock be funded?
Usually not, because you do not own it. Cars you have bought outright are what a stocking facility funds.
Finance on this page is arranged for limited companies and LLPs, for sole traders and partnerships borrowing over £25,000 wholly or predominantly for business purposes, and for individuals borrowing over £60,260 who have signed a high net worth statement. Send us the details either way: cases outside that are handled through one of our regulated partners, and we tell you who before anyone contacts you.
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