Introducing High LTV Auto Dealer Financing using Enterprise Value

Unlike conventional lenders, Auto Dealers Capital is able to provide financing against a dealership's goodwill or reputation, also referred to as the Enterprise Value, allowing borrowers to benefit from higher loan amounts which are typically unattainable with traditional financing venues.
This product is ideal for those dealers who are looking to rapidly expand their business by allowing them to obtain loans in excess of 100% of their real estate value. Unlike conventional lenders, Auto Dealers Capital is able to provide financing against a dealership's goodwill or reputation, also referred to as the Enterprise Value, allowing borrowers to benefit from higher loan amounts which are typically unattainable with traditional financing venues.

Why is the High LTV program unique?
  • Enterprise Value takes into consideration a dealership's market penetration, profitability, franchise strength, and future performance to allow loans to be underwritten up to 150% of the real estate value.
  • Ability to generate proceeds in excess of that provided by traditional lenders and/or captive finance companies, who typically will not lend above 85% LTV, even for larger dealers.
  • Individually customized loans for the dealer's specific needs work to unlock the long-term value of their investment without exposure to unreasonable risk. Usually, full personal guarantees are only required for the loan amount portion in excess of the real estate value.
What are the benefits of the program?

High LTV (Loan To Value) Auto Dealer Financing is essential for dealers looking to gain working capital to take advantage of any of the following expansion opportunities:
  • Acquire other dealerships to increase market share, maximize brand awareness and increase profitability along with satisfying other future capital needs as they occur over time.
  • Create Employee Stock Ownership Plan (ESOP) for tax benefit advantages and increased personal liquidity while maintaining operating control.
  • Reduce financial risk by refinancing short-term debt with variable interest rates to long-term debt with fixed interest rates.
  • Eliminate needing or adding partners or to gain control by buying out existing partners.
  • Increase customer satisfaction by improving facilities and providing new services and technologies or even for the purchase of the underlying dealership real estate.
For more information about Auto Dealers Capital High LTV Auto Dealer Financing programs, please visit our website.

By Martin Hayes
Published: 12/14/2007
 
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