In the scope of the BNP Paribas Factor product Distribution-Finance, the dealer is granted payment terms of up to 360 days. The receivable is immediately purchased by BNP Paribas Factor and the liquidity is provided to the manufacturer. Only when the receivable is due or after the early sale of the vehicle, the dealer pays BNP Paribas Factor and receives 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 assignment 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.
This 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.