The collateral supporting floor plan loans should be limited to equipment actually being financed by the floor plan provider.
Floor plan collateral.
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.
All too often however floor plan providers will seek to include a blanket lien on all of a dealer s assets.
Specialty lenders traditional banks and finance arms of manufacturers provide the.
Items commonly financed through a floor plan facility are automobiles trucks recreational vehicles boats construction equipment agricultural equipment manufactured homes.
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.
Floor planning is a form of retailer financing for large ticket items displayed on showroom floors or lots.
These loans are often secured by the inventory purchased as collateral.