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Distribution Finance

Stimulate sales through advanced product presentation

Distribution finance is a financing solution that is particularly suitable for automobile manufacturers and their trading partners. The dealers’ exhibition models are financed in an intelligent way. It enables trading partners to expand their product presentation in a way that preserves liquidity, so they can present a larger selection to local customers.

This financing solution can be used for all types of vehicles – from private cars to tractors.

Your advantages at a glance

  • Financing of vehicles presented in showrooms
  • 100% risk coverage for loss of receivables
  • Long payment terms possible (up to a maximum of 360 days)
  • Cession of existing trade credit insurance possible
Directly to products                               

An advantage for (automobile) manufacturers and their dealers

Distribution Finance serves the liquidity-saving extension of model presentations and the support of dealers through extended payment terms.

Here the traceability of the product is crucial, which, particularly in the automobile industry, is given by the vehicle registration document.

With Distribution Finance, a 3-party contract is signed between manufacturer, dealer and BNP Paribas Factor. The manufacturer supplies the dealer with the exhibition vehicle, while the vehicle papers initially remain with the manufacturer.
The dealer is invoiced by the manufacturer and, in the context of the BNP Factoring product "Distribution Finance", has a payment target of up to 360 days. The invoice is immediately acquired by BNP Paribas Factor and the liquidity made available to the manufacturer. Only after the due date of the invoice, or after the premature sale of the vehicle, does the dealer pay BNP Paribas Factor and receive the vehicle registration document.

The interest accrued in the meantime is charged to the manufacturer by BNP Paribas Factor. The manufacturer, in turn, generally charges the costs incurred by the extended terms of payment to the dealer.

The cession of an existing trade credit insurance is also possible with this financial instrument. However, beyond the trade credit insurance, BNP Paribas Factor assumes 100% of the risk of payment default by a dealer.

The liquidity-saving solution allows the dealer to present a wider range of products in his showrooms. An increased selection of models can lead to increased sales, benefiting both manufacturer and dealer alike.