If you are in an auto repair business, you are probably having a hard time with managing your cash flow. Your cash flow is usually affected if you are getting paid by insurance or is dealing with commercial accounts. They affect your cash flow because they demand up to 60 day terms in order to pay an invoice. The problem is that most auto repair business can’t wait that long. There are bills and expenses to pay like salaries, machinery and car parts.
You might think that creating a reserve fund can save you. Yes it is the most cost-effective way but what if you are into expanding? What if the number of clients grew suddenly. Your reserve fund might not be sufficient. Let’s not forget that creating a reserve fund can take time to build.
Another option is to use an Auto Repair Consumer Financing. This is a service which allows your customers to finance their repairs by means of a financing company. The customer will agree to pay the amount over a course of time. The financing company will then pay you in full while they collect the money from your client.
If you are looking for an auto repair consumer financing service you should check if they have the following features:
- Allows no credit check financing – Not all your clients has a good credit history. This allows you to cover more clients.
- Instant approval – With the technology today, everything is fast. A good financing company should be able to offer fast approval.
- No monthly fees – The financing company is already generating profit from the payments by your clients. They should not be getting any monthly payment from you.
Payment is same day – This feature allows you to continue to run your business without waiting for long term payments. Manage your cash flow better by opting for a financing company that has this feature.