phanio
604 posts since
Apr 7, 2009
2.
Re: Funding for motorcycle distributorship Oct 12, 2009 12:49 PM
Can you not work a deal on trade credit with the manufactuer? If they are new, they should be willing to work with you. Tell them you want 90 days to pay them - thus you have time to sell on your side and collect.
Second, can you start smaller - $78K just for inventory is a huge gamble on a new product. Can you cut that down in thirds or fifths - thus less money out now until you can prove the concept. It seems you want 60 bikes to begin - why not start with 20 bikes - if after a month sales are rolling - then get another 20 or more. This way you need much less up front.
Third - have you searched for a floor plan. There are many companies that offer floor plans (you current bank amy even offer one for new vehicles) - thus the bank or floor plan lender pays for the inventory and you pay them back when you make sales.
There are many options for funding - you might have to piece together your funding - get a floor plan or trade credit - then get the rest from a micro-loan or SBA loan.
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