All too often however floor plan providers will seek to include a blanket lien on all of a dealer s assets.
Floor plan collateral.
Another common form of over reaching is maintaining a security interest in paid inventory.
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 planning is a form of retailer financing for large ticket items displayed on showroom floors or lots.
With this service clients can have a regularly scheduled accounting of their inventory as often as they desire.
Items commonly financed through a floor plan facility are automobiles trucks recreational vehicles boats construction equipment agricultural equipment manufactured homes.
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.
The collateral supporting floor plan loans should be limited to equipment actually being financed by the floor plan provider.