Stock financing is a secure way for Manufacturers and Distributors to finance the supply of product through their dealer network without taking the added risk of credit exposure normally associated with open account sales.
Effectively, once Vendor terms are agreed then we will allocate a dedicated credit limit to our approved dealers. This allows a Vendor to benefit from guaranteed payment terms from one source, allowing them to focus on their core business.
Growth – with dedicated credit limits and extended payment terms dealers are more likely to order increased levels of Vendor product. This gives the ability to offer flexible schemes by season and product such as demonstrator facilities. This can be combined with Hitachi Capital Business Finance retail schemes to “push and pull” product through the distribution channel.
Improved Cash Flow – stock finance takes the pressure off of your cashflow as we will pay the Vendor to pre-agreed terms and the Dealer will only have to repay once the stock has been sold.
Control – we manage the credit risk through regular stock audits. The Vendor has the ability to access the Hitachi Capital Business Finance stock finance operating system (APAK) which can provide for improved stock control and reduce operating costs.
Secure – removes the credit risk from the balance sheet and results in lower Day Sales Outstanding as the dealer non-payment risk is transferred to us and we will manage all of the collections activity.
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