This white paper, commissioned by ECI Advantage, addresses types of financing available to dealers when housing market indicators are down, the cost and risks associated with different kinds of financing, and recommendations for contacting potential financing sources.
Excerpt from the white paper:
Along with a poor financing environment partly caused by the housing market downturn, several other factors contribute to business failures. Exhibit A lists several top reasons. When you, as an owner and/or operator, begin to think critically about your company’s shortcomings, keep in mind that if any of these factors apply to your organization, they will need to be resolved in your business plan. Even if they don’t currently exist, both policies and procedures need to be established to avoid them.
Fundamentally, there are two types of financing: equity financing and debt financing. This white paper will explore the advantages and disadvantages of both types, but before choosing one, you should ask yourself these questions...