Grow Finance launches SME floorplan finance product
Specialist SME finance lender Grow Finance has announced the launch of its new floorplan finance product that broadens its stable of asset finance and working capital solutions. The product has been created to enable brokers to meet the needs of the previously under-serviced small businesses dealers that require up to $3 million in finance for new or used showroom assets.
Floorplan finance enables the purchase of high-value assets required to be in a showroom to facilitate a sale via a revolving line of credit. “In lieu of the dealer paying, the lender pays the upfront payment for the goods to the manufacturer or distributor directly. This structure releases the dealer’s cash flow, enhances efficiency, and helps increase turnover. It also supports individual stock turn cycles by being able to order stock based on historical or anticipated demand,” said Greg Woszczalski, Founder and Executive Director, Grow Finance.
“Floorplan finance is widely utilised by large corporates with showrooms nationally. Conversely, Grow Finance’s product has been developed to boost the profitability of smaller independent and family dealerships that find it notoriously challenging to raise and manage capital to finance inventory,” continued Woszczalski.
Whilst the facility is predominantly adopted by dealers, it is also available to manufacturers and distributors. The main sectors that have historically used floorplan finance are agricultural equipment, industrial equipment, recreational vehicles, marine craft, motorcycles, cars and light vehicles. Floorplan finance also covers replenishment stock (the spare parts and accessories that complement the inventory on the floor).
“The release of our floorplan finance product is particularly timely as showrooms are getting ready to re-open their doors in many states and capitalise on the expected post-lockdown shopping frenzy, as well as maximise sales in the pre-Christmas rush. We also expect to see sustained demand for leisure goods whilst international borders remain tightly clamped – particularly over the summer months,” concluded Woszczalski.
Businesses can access up to $3 million of floorplan finance from 0.75% per 30 days on drawn funds (loan term of up to 180 days). Grow Finance can also facilitate the FX for overseas purchases and can organise freight forwarding, shipping, and customs for the goods.
Grow Finance is an established non-bank lender that specialises in providing broker access to a broad suite of asset finance and working capital solutions. The company is actively focused on creating new products that provide businesses with funding alternatives that contribute toward efficiencies and growth.