CARMEL, Ind. -

In a move intended to improve cash flow for independent dealers, NextGear Capital on Thursday introduced a new program for its floorplan financing.

The company highlighted its new flex pricing program can reduce the principal paydown rate to .01% per period — what NextGear believes is one of the lowest in the industry — and can simplify the payment process by eliminating certain fees.

“Like most small businesses, cash flow concerns are a common challenge for independent dealers,” NextGear president Scott Maybee said in a news release.

“We listened to our dealers and appreciate that this is a pain point for them and went to work designing a flexible option that gives dealers greater cash flow to invest back into their business,” Maybee continued.

NextGear explained that its flex pricing program offers significantly lower payments and fewer fees when compared to standard pricing plans. The company elaborated on the offering by citing a $10,000 auction purchase as an example.

A standard term plan with a customary 10% principal paydown rate would require a $1,000 payment when the vehicle’s first principal reduction comes due. With flex pricing, the company said the principal paydown rate of .01% produces major savings, resulting in principal reduction payments of only $1.

Additionally, NextGear noted that the flex pricing program can eliminate the standard plan’s records charge and primary monthly audit fee.

NextGear currently provides full-service floor plan financing to more than 22,000 independent dealers nationwide.

“Our goal is to be a resource for these entrepreneurial-minded dealers and a partner in driving their business success,” Maybee said. “Flex pricing joins the full range of products, programs and floor plans we offer, all designed to give our dealers choices that work best for their diverse goals and needs.”

Maybee hinted programs like this one were coming when he appeared on the Auto Remarketing Podcast in February. That episode is available in the window below.