Vehicle Body Shop Finance
Why Would You Need Body Shop Finance?
A recent survey produced by the Body shop industry predicts that without the right support, a significant amount of body shops could close in the next 18 months.
The industry and those that support it know that these are difficult and demanding times.
One area, which is vital to the success of a good business, is finding the right funding source which provides you with sufficient amounts of working capital to invest in your body shop. Many body shops typically call on bank overdrafts as the first port of call only to find it not adequate in meeting their needs.
Body shop Finance is a specialist funding and collections solution designed for repairers that carry out work on the instruction of an insurance company, accident management company or motor manufacturer.
What does it mean for your repair business?
An immediate injection of cash into your repair business, and an ongoing supply of funding.
A source of funding, which grows in line with your sales and which when focused in the appropriate areas of your business can increase your profitability. Areas such as purchasing, staff training, recruitment, marketing, workshop planning and loading, estimating and building long term relationships with major customers and work providers.
Our lenders can save you valuable management time by chasing and collecting outstanding invoice payment on your behalf. Their use of the unique Claim Reference Number ensures that the collection process runs smoothly.
This service can be carried out confidentially which means your customers do not need to know of their involvement.
Their specialist bad debt protection provides you with peace of mind that you will get paid even in the event of a customer's insolvency/inability to pay.
How Does it Work?
You raise a repair estimate and send it to the work provider.
The insurance company authorise the repair and send you an authorisation note.
You send a copy of the authorisation and signed satisfaction note along with the associated invoice to our lender.
They will release up to 85% of the value of each invoice you send to them.
They will pay you the remaining 15% less a small service fee, once they receive payment from the work provider.
You will be assigned a dedicated credit controller who will receive these invoices, transfer funds to your account and collect payment of the invoice from the work provider using the unique claims reference number.
A full sales ledger management service will be provided by the lender.
All correspondence, verbal and written with your customers will be handled by a dedicated team. If you make use of our confidential solution your company name will be used ensuring that the facility is kept confidential at all times.
Our lender can provide you with bad debt protection against your outstanding invoices, protecting your business in the event of a customer's inability to pay.
Our lender also gives you 24-hour Internet access to your customer’s accounts so you can keep track of payments received and the amount of funding available to you.
They will also provide you with a Purchase Card, which enables you to make purchases as and when you need to with the funds coming directly from your lender account.
All transactions will be reported on your statement so less administration time is spent checking other financial supplier’s statements. Additional cards can be issued for use by members of your staff.
Call TAL Commercial Today for a no-obligation chat about your vehicle body shop finance needs.
Further Invoice Factoring Solutions & Information Sources
Trade Services Finance
The ultimate financial solution for businesses buying and selling non-perishable goods
The Asset Based Finance Association
(ABFA) website - a source of useful invoice factoring information.
(Coming Soon)
Technical Details - How does factoring work, what are the costs, which invoice factoring solution would benefit your business
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