What you don t realize is that like most new car dealers a floor plan was used to finance the cars.
Floor plan finance facility.
While some lenders are unable to properly serve independent dealers nextgear capital has proudly served the independent dealer market for over ten years our floor plan financing options allow dealers to finance nearly any.
It plan organizational structure plan a good strategic facility plan integrates all the issues of design location and finance see diagram.
However not all inventory finance companies offer retail and dealership wholesale financing options.
The dealer then receives payment hopefully including a profit and remits the balance to.
The variable discount is for the life of the loan as long as the loan is retained under a variable business term loan product.
Using cash or a bank line of credit to purchase inventory can work for some car dealers but many floor plan financing companies offer a variety of dealer specific benefits.
For those not familiar floor plan is an industry term used to describe short term inventory financing provided by a finance company bank or private equity firm.
Contrary to common perceptions most car dealers do not pay cash for the.
Generally the dealer grants the lender a.
Completing the business case the most thorough strategic facility plan adds two other ingredients to provide the complete business case.
Rather than use your own capital to pay nichibo you utilize our floor plan finance facility.
We provide your dealership a line of credit against stock that is held.
Dealers use floor plan lines of credit to acquire and or refinance inventory for their wholesale retail remarketing operations.
Floor plan finance companies are uniquely attuned to the needs of auto dealers.
Simply it is a way for an auto dealer to use a lender s funds to finance the cars and until each of them is sold the lender holds title to the cars.
In addition to freeing up the cash a dealer has on hand other floor plan financing benefits.
Floor planning is commonly used in new and used car dealerships.
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 these loans are often secured by the inventory purchased as collateral.
Some automobile manufacturers offer dealers their own version of floor plan finance.
Floor planning is a form of financing for large ticket items displayed on showroom floors.
1 discount variable and fixed rate offers only available on new lending with a minimum loan amount of 200 000.
For example automobile dealerships utilize floor plan financing to run their businesses.
Floor plan finance options are popular within the automotive industry.
Proof that the facilities support the.
As the stock is sold the debt is either repaid or new stock is purchased so at all times you can continue buying vehicles.
