Over the next three days, PointBlank will explore why working capital works for small businesses. Today, we cover applications for the automotive industry.
Trying to drive more sales to your automobile repair or sales shop? Put working capital* in the driver’s seat.
Corny phrases aside, working capital ends up making a lot of sense for small businesses who deal with cars. You can use it to promote your business, helping it stand out in a field of automotive repair shops that stretch from coast to coast. You can use it to make needed repairs or improvements to your business.
But let’s go for a real world example at an auto dealership. You’re Tom Q. Sellcars, and you own a Ford dealership. Your business booms in the summer, but during the difficult winter months you could really use a shot in the arm. So you get a working capital loan that allows you to cover your obligations and invest in marketing and advertising, say radio spots on WCAR, your local station.
If that working capital helps you turn over your inventory over that glacial stretch from November to February. If you should do so a handful of times over the winter and early spring, each dollar you borrow can bring in more than $2 in gross margin. Even after you pull out the costs you incur at your business, you’re still going to be bringing in more than you borrowed.
Honestly, you’re only limited by your imagination. But here’s a couple of additional tangible benefits:
- It helps you stay ahead. The automotive industry is rife with competition. What separates you from your competitors helps you boost your revenue and outlast them. Working capital loans offer quick financing to help you achieve short-term or long-term goals, and to make improvements that will make sure you have the best garage in town.
- It saves you the bank loan process. Let’s face it, you don’t have a lot of time. Cars are always in demand, and they’re always breaking down. You probably don’t want to go through an extended loan process when you need to be at your business, doing the essential everyday work that keeps the revenue coming in. Working capital loans feature a generally easier, quicker process with less papework. How can you not love that?
What would you use working capital loans for if you own/if you did own an automotive shop? Let us know!
Photo credit to pixkit at http://www.sxc.hu/photo/178919
*Working capital not available in the following states: AK, DE, ND, VT