Outsourcing Dealership Financing

A recreational vehicle dealer may offer financing options through an in-house team; however, it is becoming increasingly popular to streamline the financing process with a partner. When you work with Finance Solution, your dealership receives expert services with the feel of an internal team just a call away.

In this article, we’ll discuss what outsourced and interim finance solutions are, the benefits of a partner like Finance Solution, and how to start the outsourced dealership financing process when time or budget constraints are a factor. Here’s everything you need to know:

Image of two business people reviewing paperwork.

What Is Outsourced Dealership Financing?

Outsourced financing refers to the practice of hiring a third party to handle the financing and funding needs of a dealership. This can include tasks such as seeking out loans, organizing a line of credit, or identifying investors. Outsourced financing can be a useful option for dealerships that need more resources or expertise to handle these tasks internally, or want to focus their efforts on other areas of their operations.

There are several potential benefits to outsourced financing. For one, it can save time and resources that might otherwise be spent on the financing process. It can also provide access to a broader range of financing options and expertise, potentially leading to more favorable terms for the dealership.

What Are Interim or Short-Term Financing Solutions?

Interim financing is the process of providing dealerships with access to funds in a short window. This type of finance solution is often used when dealerships need quick funding, but are facing financial or logistical obstacles. The terms are usually much more flexible than those offered by other lenders, making them ideal for short-term needs.

Quick financing options and solutions can be especially beneficial when budget restrictions are an issue or when a dealership needs access to funds quickly due to unforeseen circumstances. Outsourced partners that offer these types of solutions may require higher down payments and shorter repayment periods, but offer lower interest rates as an incentive to dealerships.

The Benefits of Outsourced Financing Solutions

Outsourced financing solutions, including short-term loans and lines of credit, can be valuable tools for dealerships to meet their financial needs and goals. Here are some of the benefits of using short-term funding by outsourcing dealership financing:

Flexibility

Short-term financing can be more flexible than long-term financing options. For example, a short-term loan may have a more lenient repayment schedule, allowing the borrower to make smaller payments over a shorter period. This can be helpful for dealerships that may experience fluctuations in cash flow.

Reduced Costs

Short-term financing can be less expensive than long-term financing options. This is because the loan period is shorter, so the lender does not need to charge as high of an interest rate to compensate for the longer repayment period.

Quick Access to Funds

One of the main advantages of short-term financing is that it can be obtained quickly and easily. This is especially useful in cases where a dealership needs to access funds quickly to meet a short-term obligation or take advantage of a time-sensitive opportunity.

Improved Cash Flow

Short-term financing can help improve a dealership’s cash flow by providing the necessary funds to meet short-term obligations or take advantage of new opportunities. This can help your operations stay afloat and keep general business running smoothly.

Competitiveness

Dealerships can be more competitive in their industry by using short-term financing to meet their financial needs. This is because they can take advantage of new opportunities and keep their operations running smoothly, giving them an edge over their competitors.

Is your dealership interested in securing quick financing solutions? Check out this article on improving your credit score to qualify for outsourced dealership financing.

Improve Your Credit Score Today

How to Start Outsourcing Dealership Financing

Dealerships are fast-paced environments with many moving parts, making the financing process complex and time-consuming. One way to streamline the process and save time for other tasks is to outsource certain aspects of the operation. Here are some tips for how to start outsourcing dealership financing:

Determine Which Financing Tasks Can Be Outsourced

Some functions suitable for outsourcing include marketing, customer service, and financial analysis. Consider what tasks are taking up the most time and resources, and consider whether these tasks can be delegated to a third party, like Finance Solution.

Research Potential Partners

Many practices specialize in outsourcing dealership financing, so it’s essential to research and choose a reputable and reliable partner. Look for companies with a track record of success and good customer reviews.

Negotiate Terms and Pricing

Once you’ve identified a potential outsourcing partner, it’s time to negotiate the terms of dealership financing. Discuss pricing, timelines, and other important details to ensure a mutually beneficial partnership.

Balance Communications and Expectations

It’s important to set clear expectations and establish open lines of communication with your outsourcing partner. This will help ensure that the partnership runs smoothly and that any issues or concerns can be addressed quickly.

image of two business people shaking hands inside of a car dealership.

Services at Finance Solution

At Finance Solution, we offer funding opportunities for outsourced finance and insurance, RV dealer services, boat dealer services, and other outdoor vehicles.

As a dealership, we know you are regularly asked by recreational vehicle customers if they should finance an RV through a bank or dealership. With Finance Solution as a partner, you’ll never need another option with the best financing, insurance, warranties, and benefits like:

Shorter loan terms
Convenience of having a dealership handle all paperwork and negotiations
Greater flexibility if you have a low credit score

Choose Finance Solution for a Better Future Today

We provide flexible terms and competitive rates while maintaining responsible lending practices for our clients. Whether your dealership is in limbo, experiencing high turnover, or just recently lost a financial manager, we have you covered. With our solutions, your short-term future can be taken care of across various applications. Reach out to our team of experts to learn more about outsourced dealership financing and funding solutions today.