Santander Consumer is expanding its small business offering to all auto dealers using its platform.
The program lets small business owners and entrepreneurs finance vehicles through the lender’s consumer banking division, broadening their available financing options, Santander said in a news release Monday (Sept. 16).
The program is aimed at businesses with under 10 vehicles in their fleet and is designed to address a “significant” market gap, according to the release.
“Dealers have expressed a strong need for more robust financing options, and small business owners have often been limited in their choices,” Santander Consumer President Betty Jotanovic said in the release. “By offering a full spectrum of vehicle financing options, we are making it easier for entrepreneurs to grow their businesses and for dealers to better serve their customers.”
In the last year, Santander Consumer has expanded its partnerships with carmakers such as Mitsubishi, Lotus and Ineos to offer a wider range of financing, per the release.
PYMNTS examined the challenges facing small- to medium-sized businesses (SMBs) earlier this month, noting that these operations deal with a persistent issue: delayed payments.
“For SMBs, delayed payments are not just an inconvenience, but a severe threat to cash flow and operational stability,” the report said.
Close to one-third of SMBs said they still rely on manual processes for ad hoc payments, which make up much of their revenue. Surveys showed that 46% of SMBs without automated accounts receivable (AR) software consider delinquent payments their chief concern.
“Facing manual processing constraints, many SMBs are turning to FinTech solutions,” the report said. “Despite a forecasted 50% surge in payment volumes and a 46% rise in invoicing over the next three years, many SMBs remain saddled with outdated systems.”
Sixty-four percent of SMBs said they are looking into tailored financial services through integrated software platforms.
“The shift toward cloud-based services is notable, with more than 80% of SMBs seeking these solutions to overcome inefficiencies,” the report said.
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