Independent auto dealerships operate across several connected cash cycles. Vehicles may require purchase, transportation, inspection and reconditioning before a retail sale, while floor-plan interest, curtailments, payroll, advertising and facility expenses continue. This guide explains how to document the funding need, measure inventory performance and compare potential structures without treating unit count or asking prices as guaranteed repayment capacity.
Define the need before choosing a structure
Separate vehicle inventory from reconditioning, transportation, service-department equipment, payroll, marketing, facility work and other operating needs. A specialized floor-plan facility, a revolving line, equipment financing and general working capital can have different permitted uses, security and payment rules.
Build a written budget showing the amount, timing and expected business benefit for each use. Include auction and buyer fees, shipping, inspections, title work, mechanical and cosmetic repairs, parts, labor, photography, advertising and a reasonable contingency.
The CashMigo auto dealership funding page provides a focused starting point. Request an amount tied to verified operations and a conservative repayment source rather than automatically seeking the largest possible approval.
Measure inventory age, turn and gross profit
Prepare an inventory schedule showing each vehicle's acquisition date, cost, current payoff, reconditioning spend, asking price, book or market reference, days in stock and status. Separate retail-ready vehicles from units awaiting title, transport, repair or wholesale disposition.
Review monthly units sold, front-end and back-end gross profit where applicable, days to sale, aged-inventory percentage, discounts, wholesale losses, returns and cash actually collected. Unit volume without gross-profit and payoff information does not explain operating cash flow.
Model a slower-sales case with longer holding periods, lower selling prices and additional repairs. Test whether the proposed obligation remains manageable after ordinary floor-plan interest, curtailments, payroll, rent, insurance, advertising and tax or title expenses.
Tell CashMigo what the business needs, how much and how soon. We will review the request and help identify potential next steps.
Check My Funding Options →Understand floor-plan obligations
Floor-plan financing is a specialized vehicle-inventory facility commonly secured by identified units. The lender may require titles or other security, periodic audits, unit-level payoff after sale and curtailments as inventory ages. Exact rules depend on the agreement and provider.
Prepare current floor-plan statements, available capacity, unit-level payoff amounts, audit results, curtailment dates, interest and fees, aged exceptions and any cross-default or personal-guarantee terms. Explain how sale proceeds are applied and when a unit is considered sold under the agreement.
Do not use a new obligation to hide unresolved sold-out-of-trust issues, missing titles, unpaid payoffs or inaccurate inventory records. Those matters require immediate review with the relevant provider and qualified legal and accounting advisers.
Budget reconditioning and fixed assets
Create a repeatable reconditioning budget by vehicle type and condition. Track inspection, mechanical, body, paint, tires, detailing, keys, emissions or safety work, transportation and days unavailable for sale. Compare forecast cost with actual results and the resulting gross profit.
For lifts, alignment systems, tire machines, diagnostic tools, detailing equipment, security or dealership technology, obtain vendor quotes showing equipment, installation, training, software, service and useful life. Equipment financing may be considered for qualifying identified assets.
For facility improvements, confirm lease rights, landlord approval, permits, code requirements, downtime and ownership of installed improvements. Separate long-lived improvements from recurring operating shortfalls.
Compare potential funding paths
A business line of credit may fit recurring short-term needs for a qualifying established dealership when draw and repayment rules align with the cash cycle. Availability can change, and the line may not permit vehicle inventory purchases.
Equipment financing may fit qualifying service, diagnostic, detailing or technology assets. Compare down payment, payment, term, fees, insurance, equipment security and end-of-term ownership.
Working capital or a term structure may support documented operating, reconditioning, marketing or facility needs when permitted. Compare net proceeds, payment frequency, complete cost and cash-flow impact. Confirm every proposed use before accepting an offer.
Prepare records and protect customer information
Useful starting records may include business bank statements, financial statements, unit sales and gross-profit reports, inventory aging, floor-plan statements, payoff and curtailment schedules, dealer-license information, equipment quotes, payroll and current obligations.
Explain related finance or service companies, owner advances, intercompany transfers, wholesale activity, large deposits and existing liens clearly. Consistent unit-level and financial records help a provider understand the dealership's true operating cycle.
Begin with non-sensitive business information through CashMigo's 60 second funding check or call 1-844-617-CASH. Do not submit buyer Social Security numbers, driver's-license images, credit applications, bank information, deal jackets or other customer records through the short form.
Frequently asked questions
What auto dealership expenses may business funding support?
Depending on the program and final agreement, potential uses may include eligible working-capital needs, reconditioning, transportation, equipment, technology, payroll, marketing or facility improvements. Vehicle inventory requires program-specific review.
Is a business line of credit the same as a floor plan?
No. A floor plan is generally a specialized vehicle-inventory facility with unit-level security, audits, payoffs and curtailments. A general line may have different permitted uses and may prohibit inventory purchases.
Why does a provider review inventory aging?
Inventory age affects carrying costs, curtailments, market-value risk and the time required to convert a vehicle into collected cash. Providers may review unit-level cost, payoff, days in stock and disposition plans.
Can service-department equipment be financed?
Potentially. Eligibility may depend on the equipment, vendor, price, condition, useful life, dealership profile, credit and provider requirements.
What dealership records may be requested?
Common records may include bank statements, financials, monthly unit sales, gross-profit reports, inventory aging, floor-plan statements, payoff and curtailment schedules, licensing, equipment quotes and current obligations.
What information should not be submitted through the funding check?
Do not submit customer names, Social Security numbers, driver's-license images, credit reports, financing applications, banking information, deal jackets or other private customer records through the short form.
