NextGear Capital has financed more than $1 billion of non-auction dealer purchases through floorplan tool Rapid Pay since the start of the year.
“We are giving our dealers funding before we have that title in hand,” Sarah Lutey, director of corporate strategy at NextGear Capital, told Auto Finance News. Lutey was referring to a Rapid Pay feature, unveiled in March, that initiates funding requests upon notice of title.
“Anytime a dealer wanted to floorplan inventory that was dealer-owned, a dealer-to-dealer purchase, or a trade, it had been a very manual process,” she said.
That process that historically took days has been reduced to about 90 seconds. Already, 39% of NextGear’s 22,000 dealers use Rapid Pay to floorplan all their non-auction purchases, typically one to five units at a time.