Floor Plan 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 plan collateral.

Floor planning is a form of retailer financing for large ticket items displayed on showroom floors or lots. 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. Specialty lenders traditional banks and finance arms of manufacturers provide the. Floor plan inspections collateral specialists inc s floor plan inspection service provides financial institutions with an accurate accounting of their floor planned inventory.

These loans are often secured by the inventory purchased as collateral. Another common form of over reaching is maintaining a security interest in paid inventory. Items commonly financed through a floor plan facility are automobiles trucks recreational vehicles boats construction equipment agricultural equipment manufactured homes. All too often however floor plan providers will seek to include a blanket lien on all of a dealer s assets.