Yes, there are times when an F1 team also needs a cash advance. An F1 team could face a cash shortfall in months when income is low and expenses are high.
According to Monisha Kaltenborn, Sauber followed Force India and asked Bernie Ecclestone for a cash advance on its Formula 1 championship payments to prevent its competitor from getting an edge.
F1 Team Need Cash Advance?
The request was made by Force India in October and it is thought to have been accepted. Sauber and Manor did the same when they became aware of it.
The other teams will have to give their unanimous consent before Ecclestone can facilitate the requests.
Sauber team leader Kaltenborn said to Autosport that they saw some of their competitors had asked for a cash advance, which could provide a direct competitive edge. They felt it would certainly make their lives easier, so they did it.
If they could improve their liquidity, it would certainly help the firm. They were not in a position where they could say that it made no difference at all.
Monthly payments are received by teams from Formula One Management on the basis of their historic status as well as their constructors’ championship position in the last season.
These payments are made from February to November, resulting in a shortfall of cash in December and January when important production occurs.
According to Kaltenborn, they are coming close to a time when costs are very high and there is no income from FOM, a major income source for teams.
She said she was confident that Sauber’s request would be accepted. She didn’t see why anyone would oppose it since other teams had received it. It would not be nice if one team suddenly refused for no reason.
