A dealership can gross $40K in a month and still miss payroll in it - because dealer cash flow isn't one stream, it's a timing puzzle: floor plan payoffs due in 48 hours, lender funding arriving in 5-10 days (contracts in transit), curtailments on aging units, recon bills on arrival. Every piece is fine; the sequence is what strangles.
The four choke points
- Contracts in transit: you delivered and owe the floor plan NOW, but the customer's lender funds in 4-10 days. Multiply by 6 deliveries in a good week and 'winning' creates a five-figure gap.
- Curtailment clusters: aged units hitting 60/90-day paydowns in the same week - predictable months in advance, ignored until Thursday.
- Recon queue: cash-gated recon means inventory (and its interest clock) waiting on your operating account.
- Tax-season whiplash: Q1 volume spikes demand double inventory exactly when last quarter's slow collections thinned your cash.
The Friday dashboard (15 minutes, four numbers)
Cash available. Contracts in transit (deals delivered, funding pending - with expected dates). Floor plan obligations due in 14 days (payoffs + curtailments per the aging report). Recon spend committed. Lots that track these four see every crunch six weeks out, when the fix is a phone call - not a fire sale of a good unit at auction to make Friday's curtailment.
The structural fix most lots need
A modest working capital line (typically 50-100% of monthly gross) bridges contracts-in-transit permanently - draw at delivery, repay at funding. Interest for 5-8 days per deal costs a few dollars per unit; missing a buy or bouncing payroll costs real money.
60-Second Funding Check
No credit pull. No obligation. Just a straight answer.
What do you need funding for?
Dealer cash-flow triage, free of charge
Bring a Dealerun specialist your four numbers - we'll tell you whether the fix is a line, a floor plan restructure, or just resequencing payments. Sometimes the honest answer is that you don't need to borrow; we say that too.
Bridge the timing gaps
A line sized to your delivery pace - quoted in hours.
FAQ
How big a working capital line does my lot need?+
Rule of thumb: enough to cover your average contracts-in-transit balance plus one month's recon. A lot delivering 20 units at $18K average with 7-day funding lags typically wants $75-150K available - drawn briefly, repaid constantly.
Why not just ask the floor plan for more time instead?+
Extensions cost fees and goodwill, and repeated ones flag your file. A working capital bridge is cheaper per use and keeps the floor plan relationship pristine - which pays off when you want line increases later.
Get a callback from a funding specialist
Real questions, straight answers - no scripts, no pressure.
No credit impact. We never sell your information.
Ready to put this to work?
See what funding your business qualifies for - it takes two minutes and won't affect your credit.