rich89

Partner finance

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I was chatting to a trader that I give some of our part exchanges to and he uses bcas funding. 

He said he had to sign a personal guarantee to secure the credit and didn't seem to phase him. Is that a standard thing? 

I don't think I'd be able to sleep at night if I was borrowing a few hundred grand and my house was on the line. Could get away from you so quickly. 

Do you guys have this?? If so, does it not worry you? 

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I looked into it and they wanted personal guarantee, so I left it at that. Didn’t really need it anyway 

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They will always want collateral - Your stock is not suitable security as you could sell it all and do one very quickly.

In their eyes, if you're not prepared to secure a loan in that way, why should they take the risk.

We're all the same, convinced we can make it work if only we had a spare £500k - when we are asked to back up our enthusiasm, we start to think of all the negatives - just like a funder.

 

 

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I've got them with Next Gear and partner finance, don't know why really as I never use them. Two cars a year if that.

I know of folk who do well with them, I know of one who had to sell up to pay them money owed. Shame because he had a fantastic pitch (now a car wash) with huge potential and all because he wanted fresher newer stock. Then you have Big cars, caralot and a good few more up and down the country I guess. You live by the sword.....

One thing is for sure, they are hugely popular and are the number one factor IMO in what we have seen at the block in recent years. It's not going to happen, but I do wonder how the landscape would look if these products were wound up, quite a bit different I'm sure.

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Not sure I would sleep at night, it does not take much to go from Hero to Zero these days

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I use it to bump alongside my other funding , works ok for me , but I agree people may see it as free money that might as well be spent thus pushing up prices.

 

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Partner Finance is good if you can turn the cars over, just don't get excited and pay too much for stock. Turn stock over with in 120 days and you are home and dry, you can make money out of it.   

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Never got the stock loan facility.  Spoken to a few of the companies that do it but never really took to me.  In my eyes if I wanted to expand or grow quicker I'd just get a 250k business loan, secure it against my house and pay the minimum monthly payment.  More cost effective with less worry, less hassle and you know where you stand.

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