"Many dealers fall into the trap of going on an inventory fast during tough times as a response to cash flow restraints"
Bill Lassiter, of Lynnray Financial Corp

Bill Lassiter, of Lynnray Financial Corp., warns dealers of the many business pitfalls that occur if a dealer fails to properly capitalize a rent to own business. Lynnray Financial Corp provides long term inventory financing to avoid these pitfalls.

"Inventory Fast"
According to Lassiter "Many rent to own dealers fall into the trap of going on an inventory fast during tough times as a response to cash flow restraints." He characterized an "inventory fast" as a change in the original merchandising plan. A dealer begins purchasing only the lowest end or cheapest products available or begins to reduce the SKU’s (stock keeping units) on the floor and buys only the necessary products to cover key RTO product categories. Lassiter states "this is often a natural response to tighter cash flow situations." But he warns, "This strategy can bring on worsening business conditions over time. Dealers in this situation soon risk losing their inventory selection message."

"Your Inventory Selection is a basic component to healthy retail merchandising," said Lassiter. "Without it, RTO dealers soon notice that floor traffic count is down and pick-ups increase along with their associated operational expenses. These conditions can contribute to a downward spiral and the inability to provide high end products most popular with consumers. The dealer can lose the appeal of variety and the allure of quality on the floor. Customers will find a better selection of higher end products at a competitor, usually a "national competitor", who is publicly financed and not as subject to cash flow restraints as the independent Rent to Own dealer."

The solution is financing "a portion" of your inventory for a longer term. This is a sound and healthy strategy that keeps cash flowing and allows the dealer to stay "On Message" with his product assortment plan. Lynnray Financial Corp provides a "long term inventory financing option" and believes it is a major tool to keeping your business on track.

Bill Lassiter of Lynnray Financial Corp. has been helping rental purchase companies find financing solutions for over 20 years. Call him for a free consultation and solutions for your business.
Bill Lassiter, Lynnray Financial Corp., (800) 535-4138 ext. 3