A one-store RTO dealer in his third year of business, should utilize Lump Sum Capital Injections of $35k to $75k for inventory purchases with a 24 month payback
Bill Lassiter, of Lynnray Financial Corporation

Bill Lassiter, of Lynnray Financial Corporation encourages Rent to Own dealers with growing businesses to use a long-term inventory-financing plan to "mix" with traditional short term accounts payable programs received from suppliers.

Lassiter states as an example; "A one-store RTO dealer in his third year of business, should utilize Lump Sum Capital Injections of $35k to $75k for inventory purchases with a 24 month payback." A "long term" capital injection should be used once or twice each year. These lump sum inventory purchases can be received over a 90-day period and will have a dynamic impact on the RTO’s business.

Benefits of these programs occur in two ways.

--Cash Flow
Receiving a sizable capital injection with a 24-month term payout, eliminates the dealer’s need for any additional monthly purchases. The dealer’s cash grows from customer payments and his relief from making any additional monthly purchases with short term due dates.

--Improved Rental Contracts
The dealer can merchandise higher quality contracts with longer terms. The 24 month term money relieves the pressure to produce shorter term rental contracts. Rental contracts will increase in length and value. Dealers often experience a 40% improvement in the monthly average lifespan of their contracts. These two measurements are the core basis of the RTO’s profitability

Lassiter says that RTO operators generally attempt to grow their businesses from monthly receipts. He states, "After the initial investment is made, attempting to grow your business in this way will slow your results down dramatically."

Lynnray Financial Corporation offers 24 and 27-month term payable schedules for financing Rent to Own inventory. Call Bill Lassiter @ 800-535-4138 or e-mail blassiter@lynnrayfinancial.com for details of how Lynnray Financial can assist your company.