Financing & Capital Strategy
Race team financing
A race team owns more collateral than most small businesses and uses less of it. Financing closes the timing gap between the cost of the season and the sponsorship that pays for it.
Financing structures that work in motorsports
Asset-backed credit lines secured against cars, spares, and transporters. The revolver is drawn in the off-season and paid down as sponsorship arrives. Equipment loans for a new chassis, engine lease buyout, or transporter, amortized over the useful life. Sponsorship receivables facilities that advance a share of a signed sponsor contract so the team is not waiting on the sponsor's payment terms. Partner structures where a supplier takes payment in part from program revenue.
What we do
We define what the team needs to borrow and when, by rebuilding the season as a monthly cash flow. We assemble the collateral file: titles, valuations, contracts. We take the package to lenders who understand the asset class, and we negotiate terms that hold through a bad weekend. The goal is a facility the team can actually draw on in March, not a term sheet that falls apart at diligence.
Why most teams never get financed
Lenders see a sport, not a business. The fix is paperwork: a budget by month, titled assets with values, signed contracts, and an operating history. We have built credit lines for operators that banks initially passed on. The difference was the file, not the business.
Frequently asked questions
Can I finance a race car?
Yes. Competition cars with a clear title and a resale market can secure equipment financing or serve as collateral for a credit line. Lender appetite depends on the series and the car's resale liquidity.
What is a sponsorship receivables facility?
A loan advanced against a signed sponsorship contract, so the team receives most of the money up front and the lender is repaid from the sponsor's installments.
Do I need a business entity to get race team financing?
Yes. An LLC or corporation that owns the assets and holds the contracts. Financing a sole proprietor's hobby is close to impossible.
How long does race team financing take?
Four to eight weeks from a complete file. The file is usually the slow part, and it is the part we build.
Talk to us about it
Tell us what you're navigating. If we can move it forward, we'll tell you exactly how.
Start a conversationOr call 312-806-4575 · info@dandoungroup.com