Any rising company can use more money, and Brammo’s got their fingers on some more of the green stuff, thanks to GE Capital.
Yahoo is reporting GE Capital has supplied Brammo with inventory financing to help them build up their dealer network. There’s no word in the report as to how much the deal is worth.
Inventory financing, according to the interwebs, is when a company secures funding to buy inventory (say, a line of credit or short term loan) using that inventory as collateral. Yahoo didn’t say how much money Brammo was getting from the deal.
This might seem like a bit of an odd move for a company most people would associate with blenders and microwaves, but GE has had their fingers into everything now for decades.
The fleet services branch of GE Capital has committed to buying 25,000 electric vehicles for itself and its customers by 2015, so the company certainly needs to encourage growth in that sector. This could be an important step towards that goal.
GE Capital’s deal allows Brammo dealers to get financing for their inventory of Brammo motorcycles, as opposed to having to buy them outright from Ashland. It’s not like GE just dropped a check off into Brammo’s bank account, as this article seems to suggest.
GE Capital provides this sort of inventory financing for a number of motorcycle OEMs. The concept of “flooring” is pretty standard stuff that has really nothing to do with electric vehicles, and everything to do with how dealerships operate their businesses here in North America.
Yes, I thought that was clearer than it was. As far as I understand it, it’s basically a line of credit.