Since the amount of money a typical BHPH customer has available to buy a car and give a down payment has remained steady while wholesale vehicle prices remain high along with repair costs, Buy Here Pay Here dealers are being forced to increase their cash in deal on each sale to keep their business open and continue to serve more customers. When dealers are in need of cash flow, they can turn their receivables into liquid cash in just a couple of days. Let’s take a look at the 3 main advantages any BHPH dealer should take note when considering selling their receivables:

  1. Quick cash flow

Most of us know of or have seen a dealer that has basically sold themselves out of business. Burning through too much cash too quickly can leave a dealer with no funds left to pay bills or replenish inventory. Even the best dealers will occasionally spend more money than anticipated and need an infusion of cash. Selling BHPH notes is an easy way to do this.

  1. Eliminate interest expenses

Many dealers use floor plan lines, credit lines from their banks or loan to fund their operations. Some have had to take on partners to increase the equity in the business. Many of these dealers have decided that selling off notes might be a better alternative to these other funding sources by giving them more control of the process.

  1. Focus on sales

By selling off notes, some dealers believe they can operate more efficiently. Selling a note transfers the collection responsibility, in most cases, to the note buyer. That means that the dealer and his employees can concentrate on selling vehicles and let someone else worry about collecting the notes.
There are many other advantages associated with selling your auto note receivables, and we encourage you to request a consultation today and receive a quick quote for your notes: Get Started