Are You Ready for BIG Changes in Your Inventory Financing?

I think there is one thing we can all agree on and that is nothing stays static in our industry for very long. 

Sometimes an event comes along that can affect the entire foot print of how you do business and the recent announcement by GE Capital to sell their Finance Division could just be one of those changes. 

Different from most industries the recreational products industry was built on inventory finance through non bank commercial finance companies.  It started back in the 70’s with Borg Warner Finance who became Transamerica Commercial Finance.  In the 80’s ITT Commercial Finance was introduced to the industry who became Deutsche Bank Commercial Finance and the list goes on.

In traditional business applications you would expect owners to finance their inventory through a bank.  However, Canadian banks are not equipped to do monthly floor audits and therefore require significant collateral to secure a wholesale line of credit. 

Most Motorsport and Marine dealers simply do not have the liquid security that banks require, so non bank commercial finance companies are essential to provide the financing you need to purchase the unit inventories you require to sell to your customers.

When you take this into consideration, the recent announcement by GE Capital to sell their GE Capital Commercial Distribution Finance (CDF) division could have a significant impact on the future of our industry.  The last time this became a huge concern was just after the 2008 recession hit and the only finance company left was CDF.

Some of you won’t have to worry about this, because your manufacturers like Honda Canada and Yamaha Motor Canada have their own finance companies to service your needs. 

Jonathan Lee reported in his recent editorial in Boating Business magazine that “CDF remains committed to all of our customers during this temporary transition period”  according to Tara Lambropoulos, Media Relations Manager for GE Capital Americas.  Jonathan goes on to say “I suppose we’ll have to wait and see what happens”.

I don’t know about you, but a wait and see position does not give me a warm fuzzy feeling when the heart of my business is reliant on inventory financing.  The first thing I would do is contact my manufacturer who is financing through CDF and ask if they have or are willing to sign a Repurchase Agreement with the other two finance companies in Canada.  If they have, or will, then you have the option to contact TCF Commercial Finance Canada Inc or Northpoint Commercial Finance Canada and open a dialogue on acquiring alternative financing for your inventory.

It may just happen that GE Capital finds a buyer for CDF and they will continue on seamlessly with the commercial financing of inventory in the recreational products industry.  However, we have seen finance companies close up shop before so I would certainly want to be doing my homework and know what my options are to protect my business.

If you need or want assistance with your inventory financing, contact me for a free consultation.

Comments (19)

  1. BachJohann

How much of an unique article, keep on posting better half gambling payment gateway

  Attachments
 
  1. BachJohann

Good – I should certainly pronounce, impressed with your web site. I had no trouble navigating through all tabs as well as related info ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least....

Good – I should certainly pronounce, impressed with your web site. I had no trouble navigating through all tabs as well as related info ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Nice task. high risk merchant accounts for CBD oil

Read More
  Attachments
 
  1. peterseo

I’m impressed, I must say. Really rarely do I encounter a weblog that’s both educative and entertaining, and let me tell you, you have hit the nail for the head. Your concept is outstanding; ab muscles an element that there are not enough folks...

I’m impressed, I must say. Really rarely do I encounter a weblog that’s both educative and entertaining, and let me tell you, you have hit the nail for the head. Your concept is outstanding; ab muscles an element that there are not enough folks are speaking intelligently about. I will be delighted we came across this within my search for something relating to this. educationaldepartments.com

Read More
  Attachments
 
  1. edward fox    peterseo

Thanks for sharing, this is a fantastic article. Will read on… <a href="https://merrychristmasquoteswallpaper.com/">Merry Christmas Images</a>

  Attachments
 
  1. peterseo

Great goods from you, man. I have understand your stuff previous to and you are just too great. I really like what you have acquired here, certainly like what you’re saying and the way in which you say it. You make it enjoyable and you still take...

Great goods from you, man. I have understand your stuff previous to and you are just too great. I really like what you have acquired here, certainly like what you’re saying and the way in which you say it. You make it enjoyable and you still take care of to keep it sensible. I can’t wait to read far more from you. This is actually a terrific website. Indoor games

Read More
  Attachments
 
  1. edward fox    peterseo

Thanks for sharing, this is a fantastic article. Will read on… Happy New Year Eve

  Attachments
 
  1. edward fox    peterseo

Thanks for sharing, this is a fantastic article. Will read on… Merry Christmas Images

  Attachments
 
  1. BachJohann

This is a good posting, I was wondering if I could use this write-up on my website, I will link it back to your website though. If this is a problem please let me know and I will take it down right away Handbags wholesale

  Attachments
 
  1. BachJohann
  Attachments
 
  1. BachJohann
  Attachments
 
  1. BachJohann
  Attachments
 
  1. peterseo

I"ve perused some well done here. Certainly worth bookmarking for returning to. I shock the amount of exertion you put to make such an incredible instructive site. packers movers in pimple saudagar

  Attachments
 
  1. edward fox

Best Realtors in Surrey to list your home or condo. A Chinese speaking Realtor that can converse in Mandarin, Cantonese, and English. A Top 1% PREC Team Member for over 10 years in a row. A Team that knows how to get the best deal for you...

Best Realtors in Surrey to list your home or condo. A Chinese speaking Realtor that can converse in Mandarin, Cantonese, and English. A Top 1% PREC Team Member for over 10 years in a row. A Team that knows how to get the best deal for you through negotiations and knowledge of Surrey Real Estate Surrey Realtor

Read More
  Attachments
 
There are no comments posted here yet
Load More

Leave your comments

Posting comment as a guest. Sign up or login to your account.
Attachments (0 / 3)
Share Your Location

Free Special Report

Insider Secrets to Achieving the Profit You Want And Deserve

Lisa Marie on Chris Brown, Lifeline Business Solutions

Lisa Marie

free consult

Testimonial

"When it comes to Finance and Commercial Credit, he is one of the most knowledgeable people I know. No one I know has more in-depth experience or understands distribution finance better than Chris"

- Joe Conte, Canadian Counsel, Textron Financial Canada Limited

Money Back

My promise of performance

A guarantee that you will receive a minimum 10:1 return on your investment in my services through a ratio and percentage analysis of your financial statements that will identify realistic adjustments you can make to add profit to your business.

Click here