When it comes to Stock Funding, misconceptions often deter car dealers from exploring the benefits it offers.
At V12 Vehicle Finance, we want to address some of the most common myths surrounding Stock Funding and show how funding can help your dealership.
Myth 1: Stock Funding is Only for Businesses in Trouble
One of the most well-known myths about Stock Funding is that it's only for dealerships facing financial difficulties. In reality, Stock Funding is a business loan to strategically help dealers who are looking to grow and expand their inventory.
To open an account with us, you must:
- Be a Motor Trader
- Be VAT Registered
- Have a physical trade premises
- Have a positive net worth
- Have filed accounts
Whether you're a well-established dealership or just starting out, Stock Funding can give you the flexibility to invest in more stock without tying up your cash flow. As Craig Mooney, Head of Stock Funding Operations, puts it, "Stock Funding is not a lifeline; it's a launchpad. It's designed to help dealerships grow, not just survive."
*V12 Vehicle Finance does not offer Stock Funding to businesses in financial difficulties, subject to background financial and creditworthiness checks.
Myth 2: Stock Funding is Expensive and Only for Big Dealers
Another common misconception is that Stock Funding is expensive or only accessible to large dealerships. The truth is, Stock Funding can be affordable and tailored to suit the needs of any dealership, whether big or small. At V12 Vehicle Finance, we understand that every business is unique, and that's why we offer flexible funding plans that cater to different sizes and financial situations.
Myth 3: Stock Funding is Restrictive
Some dealers hesitate to explore Stock Funding because they believe it's restrictive or comes with too many strings attached. However, at V12 Vehicle Finance, we offer Stock Funding solutions that are designed to be as flexible as possible.
We can fund up to £65,000 per vehicle, giving you the ability to expand your inventory with high-quality stock. Additionally, our Stock Funding isn't tied to any specific finance product that you must offer to your customers. You maintain full control over your sales process, and we simply provide the financial support to help you grow.
Myth 4: You Must Sell Finance to Access Stock Funding
A significant myth that needs debunking is the belief that accessing Stock Funding requires you to sell V12VF finance products to your customers. This is not the case. At V12 Vehicle Finance, we don't impose any requirements on the financing options you offer your customers. Our Stock Funding product is independent, meaning you can continue to offer your customers the best solutions that suit their needs while still benefiting from our Stock Funding services.
As Craig Mooney aptly says, "Stock Funding is about giving dealers the freedom to grow their business on their own terms. We're here to support your success, not to dictate how you achieve it."
Myth 5: All Funders Have Hidden Facility Fees
Some dealers believe that stock funding comes with hidden costs. At V12 Vehicle Finance, we're transparent about our fees from the outset. We also know that there are quieter times during a dealership's year. This is why we don't charge a facility fee, meaning that we don't charge you for a facility that you aren't using.
Myth 6: You Have to Fund All Your Vehicles
Another misconception is that stock funding requires you to finance your entire stock inventory. The reality is that with V12 Vehicle Finance, you can choose to fund only a portion of your stock and continue using cash for other purchases. This flexible approach allows you to manage your cash flow while still taking advantage of stock funding when it benefits your dealership most.