According to a report from White Clarke Group, the re-emergence of small and regional banks looking to expand services to existing manufacturers, dealers and retailers is continuing to spur growth in the floorplan finance market. This is providing opportunities for many traditional lenders looking to diversify their businesses and expand into wholesale, with growth expected to continue throughout the year.
Lenders are fast realizing that the necessity for the right system partner to help them get to market quickly with low operating costs is imperative. The key is finding a scalable solution that can provide an economical yet reliable, future-proof system to fit both the current size and growth of their businesses.
New compliance and regulatory requirements are also playing a pivotal role in the emergence of start-ups, small companies and manufacturer captive lenders, which find it easier to raise capital due to their flexibility.