Will banks stop inventory financing support for dealers?
19 Jul
Banks may stop inventory financing support for some dealers. This is not only to those who faced repayment issues but also to those who are well-capitalised and do not need the bank’s funding. These comprise a minuscule percentage of dealers. Withdrawing these credit facilities will have no impact on customer finance.
Banks are also seeing a deterioration in the finances of several new auto dealerships that have come up recently as the lockdown restrictions continue due to Covid-19.
