Cash is king – How to improve your cash flow stream
Abstract: Increasing sales and revenue is a top priority at most dealerships, as it should be. But in their drive to boost sales volume, some dealerships lose sight of another aspect of their financial management that’s just as important: cash flow. This article discusses frozen capital, and ways to thaw it out, including taking a hard look at vehicle receivables, vehicle inventory, manufacturers’ rebates and parts and service receivables. A sidebar explores whether a dealer should prepay for expenses, such as insurance, advertising and capital equipment.