You pay suppliers upfront and stock the shelves, then wait 30 to 60 days for garages, fleets and dealer networks to pay. Invoice finance releases the cash tied up in your sales ledger so you can restock and grow.
The specifics that make or break a facility in this sector.
Large dealer groups and OEMs often dictate long payment terms and can dominate a ledger. Lenders will set a concentration limit, but specialist funders can stretch it where the contract and payment history are strong.
Faulty part returns, warranty credits and core exchange charges create dilution against invoices. Lenders factor this credit note history into the advance rate, so clean records protect your funding.
Parts businesses carry heavy stock and pay suppliers upfront. Invoice finance funds the ledger, and a stock finance line can sit alongside it to release cash tied up on the shelves too.
MOT peaks, winter parts demand and model change cycles make sales lumpy. Because the facility flexes with invoicing, funding rises in busy months and eases back in quieter ones.
Move the slider to your typical invoice value to see what would hit your account and what it would cost.
We benchmark your facility across a panel of specialist invoice finance and revolving credit lenders, and match you with the ones whose appetite fits automotive parts & aftersales. You get whole-of-market access from one conversation, at no cost to you.
We're collecting permission to publish a real client story for this sector. Get in touch if you'd like to be one of the first.
No. This is business to business invoice finance for parts distributors, motor factors, component makers and aftersales suppliers who invoice trade customers. It is not for consumer car sales or vehicle hire purchase.
A free, no-obligation conversation with a broker who knows your sector. We do the legwork.
Get a quote →