Liquidity in automotive dealerships: Why faster incoming payments are crucial

Payment processes in the automotive industry: an often underestimated potential

Liquidity is often a balancing act for car dealers. Vehicles and parts have to be pre-financed while payment flows are delayed. Traditionally, the so-called order-to-cash process - i.e. the period from order to final payment - can take up to two weeks or more. This not only ties up capital, but also causes additional costs in the form of interest incurred for working capital.

This capital commitment period can be significantly shortened by accelerating incoming payments. Many companies are turning to digital solutions that not only automate processes but also optimize payment flows.

Case study: Accelerate liquidity, reduce costs

A look at specific usage data shows impressively how digitalization can impact liquidity. A retailer with 14 locations and an order volume of around 104 million euros over a period of five months in 2024 was able to reduce the order-to-cash period from 15 days to an average of 4.65 days with the help of bezahl.de's digital payment processes. With a working capital interest rate of 6% for the tied-up capital, this corresponds to a saving of EUR 177,053 per year, which means a reduction in working capital costs of around 69%.

Another example: A medium-sized retailer with five locations and an order volume of around 12 million euros over a period of five months in 2024 was able to shorten the process from 15 to 4.79 days and thus save 68% of its financing costs - that's around 20,657 euros.

These figures illustrate how important it is to optimize payment flows and manage liquidity in a targeted manner. While the savings are quickly apparent on a large scale, it is also worthwhile for smaller retailers to review their own payment processes.

bezahl.de: Part of the solution

One way of making payment transactions more efficient is the platform bezahl.de. It was developed specifically for the automotive sector and enables payment processes to be fully digitalized. Seamless integration into existing DMS systems minimizes manual effort and noticeably accelerates incoming payments.

The advantages are obvious: a faster payment process leads to less capital being tied up and enables car dealers to act more flexibly. Whether it is a question of financing new vehicles more quickly or reacting to short-term market developments - improved liquidity creates decisive competitive advantages.

Conclusion: The importance of liquidity in the automotive industry

It is becoming increasingly important for car dealers to secure their liquidity and avoid unnecessary costs. Optimizing payment processes is a key component in streamlining cash flows and gaining financial flexibility. Digital platforms such as bezahl.de offer a tried-and-tested solution for this and help to ensure that retailers can concentrate on their core business - with the reassuring knowledge that their payment processes are running smoothly in the background.

In an industry that thrives on efficiency and speed, reducing order-to-cash times is not only a cost factor, but also a strategic advantage.

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