Forms of business financing in car dealers: the case of Cartagena de Indias

Abstract

This paper analyzes the main forms of financing used by car dealers in Cartagena de Indias, exploring their level of access, diversification, and the challenges they face to ensure their sustainability in a dynamic economic environment. The research arises from the need to strengthen the financial analysis skills of future business managers, offering a broad and up-to-date overview of business financing applied to a capital-intensive sector such as the automotive industry. Using an exploratory and descriptive approach, primary data were collected through surveys and interviews with dealership financial managers, and secondary data were collected from official reports and recent academic literature (2018–2023). The results reveal a marked dependence on traditional bank credit, accompanied by a low use of alternative instruments such as leasing, factoring, confirming, and fintech solutions.  Likewise, requirements from financial institutions were identified. The study concludes that to strengthen the competitiveness of automotive companies in Cartagena, it is essential to diversify their financing sources, improve their financial management capabilities, and promote public policies that incentivize credit to SMEs in the sector.