Auto Dealers Capital Inc. (ADC), a subsidiary of Principle Commercial Corporation, was created with the goal of servicing the unique lending needs of auto dealers nationwide. ADC is currently working with several leading dealers who require the ability to obtain working capital in excess of their real estate value, in order to assist them with their rapid expansion strategies.
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?
ADC's 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.
Why choose Auto Dealers Capital?
- Our knowledgeable Account Executives will commit their years of commercial loan experience to simplify the financing process. They will tailor each deal to your dealership’s needs and walk you through each step of the loan process.
- Gain the advantage of a having a dedicated in-house Commercial Underwriter to guarantee you fast answers and better control over the decisions you will need to make along the way.
- Using our extensive relationships with leading commercial institutions, rest assured that you are getting the best loan package for your dealership.
Contact Auto Dealers Capital to see how we can assist financing your dealership expansion.
Please contact Matt Hickey, VP of Commercial Lending, at (518) 289-3008 for more information.
Do you have questions about our High LTV Auto Dealer Financing program?
Please
Contact Us and an Account Executive will be in touch with you shortly.