Specialty lenders traditional banks and finance arms of manufacturers provide the.
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.
Another common form of over reaching is maintaining a security interest in paid inventory.
Floor planning is commonly used in new and used car dealerships.
These loans are often secured by the inventory purchased as collateral.
Items commonly financed through a floor plan facility are automobiles trucks recreational vehicles boats construction equipment agricultural equipment manufactured homes.
Floor plan inspections collateral specialists inc s floor plan inspection service provides financial institutions with an accurate accounting of their floor planned inventory.
The collateral supporting floor plan loans should be limited to equipment actually being financed by the floor plan provider.
Floor planning is a form of retailer financing for large ticket items displayed on showroom floors or lots.