All too often however floor plan providers will seek to include a blanket lien on all of a dealer s assets.
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.
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.
Another common form of over reaching is maintaining a security interest in paid inventory.
The collateral supporting floor plan loans should be limited to equipment actually being financed by the floor plan provider.
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.
With this service clients can have a regularly scheduled accounting of their inventory as often as they desire.