As part of Distribution-Finance, the dealer 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 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.