Floor Plan Collateral

Items commonly financed through a floor plan facility are automobiles trucks recreational vehicles boats construction equipment agricultural equipment manufactured homes.
Floor plan collateral. Specialty lenders traditional banks and finance arms of manufacturers provide the. With this service clients can have a regularly scheduled accounting of their inventory as often as they desire. Floor planning is commonly used in new and used car dealerships. 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. These loans are often secured by the inventory purchased as collateral. All too often however floor plan providers will seek to include a blanket lien on all of a dealer s assets. 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.