Source: Palmetto, Florida-based DLR Financial
Are you a dealer worried about the future of the dealership you have put your heart, soul and money into to? There are fundamental steps that you should be doing, right now to ensure the future stability of your dealership!
1. Apply for the PPP loan. Even if you were denied due to lack of funds, apply again! Congress approved $300+ billion in the second round of funding. You can qualify even if you don’t have payroll, apply as self-employed. If the bank you have your business accounts with is telling you it is capped, go to the lender that holds your mortgage or auto loans. There are lenders out there still able to fund these loans, check out the lenders that lend the highest dollar amount of SBA loans a year, they will most likely have more funding available.
2. Apply for the EIDL loan. Did you know you can apply for both the PPP and EIDL? Most small business owners didn’t realize this was an option, but it is, if you use the funds for the designated purpose of each loan and they don’t overlap, it is highly recommended to apply for both. In addition, if you apply for the EIDL they will fund $10,000 within three days after a successful application has been submitted. If your loan request is denied, you keep the $10,000 and it is forgiven! Like the PPP, funds ran out quick, however, more funding has been approved so get your application in.
3. File an insurance claim. You may not think this is a covered event as most policies exclude pandemics, but rest assured, there are already litigations taking place and the carriers will be made to pay out on these claims. Get your claim in now, and let the big companies fight on behalf of everyone.
4. Think out of the box. Has your dealership been forced to close their doors? Now, is an excellent time to take your dealership virtual. There are several platforms to use, so research which one best fits your needs. Everything can be done virtually, from sales to closing, on the correct platform.
5. Consider outsourcing. Keeping all your departments employed and paid may not be a fiscally responsible option in order to weather the storm. Think about the areas of your dealership where you can cut overhead, such as your finance department. This is an overhead cost that can be eliminated, and, bring you more of a profit than you are making in house. Take the time to evaluate what you produce in F&I profit every time you finance a deal. This should be the most profitable department in your dealership. If you lean on the right people with the right program, you will create a drastically higher overall net. What a perfect time to bring on that full-service F&I company to take your finance revenue to another level.
—Source: www.dlrfinancial.com