- 13 Mar
Funding For Growth In Body Shop Car Crash Repairs
The body shop car crash repair sector is one that often uses invoice finance to fund their growth. There are specialist funders that deal with the body shop sector and the funding service tends to work in a slightly different way to other sectors.
The most obvious difference with body shop invoice finance is that the prepayment level is often 100% of invoice values (less charges). This high level of prepayments can be achieved because the audit trail - the paperwork underpinning these kinds of transactions - can be very tight, and the end debtor is normally an insurance company, which tend to be of better credit standing than other kinds of debtors.
The second difference is that the finance arrangements tend to be very straightforward and quick to get signed up and funded.
Invoice Finance Supporting A Car Repair Company's Growth
Looking specifically at one of the car repair companies that we have funded, showed that their monthly turnover has increased by some 96% over the last 6 months, an impressive rate of growth. That is where the use of invoice finance comes into it's own, when a company is growing fast. The facility means that the repairer does not need to wait until the insurance company pays before they can get their hands on the money from that transaction. They get the benefit of the value of the invoice immediately it is raised, after completing the repairs on the vehicle.
The cash released can be used for any purpose, including paying staff wages, paying suppliers for parts and supplies, purchasing equipment or to cover regular monthly expenses and garage bills.
Asset Finance For Equipment & Machinery Purchases
Although you can use invoice finance for almost any purpose, including the purchase of new equipment, you might want to consider asset finance to assist with the purchase of machinery and equipment. Asset finance allows the cost of capital expenditure to be broken down into manageable monthly payments, with the initial purchase price paid for the equipment by the asset finance company. You can use both asset finance and invoice finance in tandem to maximise the finance you can access.
If you would like more details please contact Sean on 03330 113622 or apply for body shop invoice finance.