Applications for Credit by Ford Dealerships
FCE Bank plc provides wholesale funding and certain other facilities exclusively to Ford dealerships; a valid Ford vehicle sales franchise agreement is therefore required as a precursor to any application for credit.
FCE Bank plc will acknowledge receipt of an application for credit within 5 working days of receipt of the application. If FCE Bank plc is unable to make a decision within 15 working days of receipt of an application for credit, FCE Bank plc will inform the applicant of the reasons behind this and the expected timeframe within which a decision will be made. Where this is a result of further information being required from the applicant, FCE Bank plc will inform the applicant of the information required and the timeframe within which the information should be provided.
Any funding is subject to credit committee approval, the approval process is as follows:
1. Assessment of the proposal (based on the information provided);
2. Decision in principle (subject to executive approval and formal offer);
3. Credit Committee decision;
4. Formal offer, documentation and fulfilment of any conditions precedent;
5. Completion and fulfilment of any conditions subsequent.
Applicants are entitled to request a meeting with FCE Bank plc to discuss any proposed application for credit.
FCE Bank plc Ireland will inform the applicant whether the application for credit has been approved or refused. A refused application for credit will not result in a negative impact on the applicant’s credit rating;
The information and supporting documents required to assess an application for credit will vary by applicant, but is likely to include:
1. Confirmation of Henry Ford & Son Franchise Agreement;
2. Last three years of audited accounts, and the most recent full year and year to date management accounts (including profit and loss and balance sheet and comparisons to budget / prior year)
3. Budget or Business Plan (including an integrated profit and loss, balance sheet and cash flow forecast; supported by a profit walk from actual; key trading, working capital and funding assumptions; sensitivities and vulnerabilities considered; and an action plan).
4. Details of group structure (including company numbers, share structure, management positions, and anticipated franchises within the group); Confirmation and details of Commercial Insurance for the ongoing businesses.
5. Copies of all facility letters, loan agreements and similar documentation between you and any lender other than FCE Bank plc; and full details of the security structure underpinning the Company's borrowings;
6. Twelve months of historic daily bank balances, versus any agreed overdraft facility;
7. Current aged stock, debtor and creditor lists and a breakdown of "other" debtors and creditors.
8. Any other information that FCE Bank plc feels is relevant to review as part of your assessment.
FCE Bank plc standard security position is first priority on vehicles assets and second priority on all other assets of the business, typically through an All Asset Debenture regulated by a Priority Agreement. Tangible security, such as a Bank Guarantee or a Fixed Charge over property assets, may also be a requirement for dealers who are deemed to be a higher risk, or where the standard security position is not available