26 Sep Auto Notes Selling: The Major Advantages
There are many companies who are looking for BHPH portfolio to add in their business. But this kind of business has not been considered a long time ago. But dealership has to increase the cash flow in their business and they are looking for ways to do so. That is why they have been selling notes to private lenders or note buyers. Here are the three major advantages of selling your auto notes for your business.
Auto Notes Three Advantages
a. Easy access to cash flow. You can find a lot of dealerships that have sold their business. Expenses from a business which results in getting out too much cash can leave the owner with no funds to pay the bills and restock the inventory. Dealers need more money to spend on business and keep it going. That is why selling auto notes is the best option to have more cash for your business.
b. Don’t need to get a loan. There are many dealers who resort to getting a loan on the bank to fund their business. Some may even ask to get a partner just to increase the equity of the business. But selling your auto note is the best alternative to have funds which give you control over the company.
c. Focus on selling. By selling some of your notes, you can operate more efficiently. You do not need anymore to collect the auto notes payments from time to time which needs effort, time and money to do. The buyer of the note will be responsible for the collection and you just need to focus on selling more cars.
Now it is up to you if you are going to sell your auto notes or not. Even though there are advantages, there are also disadvantages you may experience. One of them is the loss of profit. This is because you are going to sell your notes at a lower price than the overall price of the car. But if you really need cash as of the moment, selling your auto notes is a better alternative than bank loans which have large interest rates.