Specialty lenders traditional banks and finance arms of manufacturers provide the.
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.
With this service clients can have a regularly scheduled accounting of their inventory as often as they desire.
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.
The collateral supporting floor plan loans should be limited to equipment actually being financed by the floor plan provider.
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.
All too often however floor plan providers will seek to include a blanket lien on all of a dealer s assets.