Retail floor planning also referred to as floorplanning or inventory financing is a type of short term loan used by retailers to purchase high cost inventory such as automobiles.
Floor plan collateral.
Items commonly financed through a floor plan facility are automobiles trucks recreational vehicles boats construction equipment agricultural equipment manufactured homes.
Another common form of over reaching is maintaining a security interest in paid inventory.
Specialty lenders traditional banks and finance arms of manufacturers provide the.
These loans are often secured by the inventory purchased as collateral.
Floor plan lending is a form of inventory financing for a dealer of consumer or commercial goods in which each loan advance is made against a specific piece of collateral.
Floor planning is commonly used in new and used car dealerships.
The collateral supporting floor plan loans should be limited to equipment actually being financed by the floor plan provider.
With this service clients can have a regularly scheduled accounting of their inventory as often as they desire.