Black Horse
wholesale funding
What is wholesale funding?
Wholesale funding, also known as unit stocking, is a type of loan. It is designed to support dealers in purchasing and managing their vehicle inventory. This includes cars, motorcycles, caravans, motorhomes, and light commercial vehicles.
Wholesale funding provides dealers with a revolving credit facility that allows them to acquire vehicles for resale without tying up their own capital. It typically covers new and used vehicles sourced from manufacturers, auctions, or trade-ins.
Key features include:
- Flexible credit limits based on business needs and performance
- Interest that is charged only on the amount drawn
- Terms that align with vehicle turnover cycles
Benefits of wholesale funding
- You can access funding to buy stock for your forecourt.
- Our expert team will support you in finding the right funding, dependent on your business needs and financial viability.
- We regularly review our funding facilities to make sure we meet your needs.
What can wholesale funding look like?
This is an example of how our stocking facility can be set up. As every business is different, we can work with you to find a flexible solution that works for you and your dealership.
Please keep in mind that this is an illustrative example. Funding requests are based on eligibility criteria and a formal credit process.
Overview
Eligible stock:
- Used vehicles purchased within the last 30 days
- Vehicles up to 10 years old
- Maximum mileage: 100,000 miles
- Maximum advance per unit: £50,000.
Funding terms:
- Loan to Value (LTV):
- 80% for non-VAT qualifying units
- Net of VAT for VAT qualifying units
- Funding duration: up to 150 days
- Funds paid direct to the Dealer's bank account by Bacs credit.
Security and compliance
Finance charge, registered on each funded unit.
Alternative security may be required.
Stock audits are conducted by a third-party service provider.
Fees and charges
Interest:
- Accrued daily, margin over the bank rate
- Collected monthly by Bacs payment.
Unit fees are chargeable per unit.
Capital repayments are structured, based on product.
What is the difference between wholesale funding and unit stocking?
Nothing. Both terms are used interchangeably across the vehicle finance industry.
Apply for wholesale funding
Are you an existing Black Horse retail partner?
Contact your account manager.
Interested in joining Black Horse?
Wholesale funding is only available for existing Black Horse retail partners. If you'd like to join us, fill in our handy form.