Floor Plan Financining

However not all inventory finance companies offer retail and dealership wholesale financing options.

Floor plan financining.

In many cases floor plan financing is arranged with the financial assistance of a manufacturer s captive lender or the manufacturer itself. These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. How does floor plan financing work specifically to benefit auto dealers. Pulled between consumer buying habits workforce challenges competitors economic trends and other concerns successful independent car dealers want a dependable cost competitive floorplan financing provider also known as floor plan financing.

Loan repayment arrangements under a floor plan loan facility terms are often linked to a pay as sold agreement or according to a specific schedule. Floor plan finance options are popular within the automotive industry. Floor plan financing is also done for large appliances mobile homes and boats among other items and these products are usually sold to consumers with a financing contract. 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.

Floor planning is a form of financing for large ticket items displayed on showroom floors. For example automobile dealerships utilize floor plan financing to run their businesses. The arrangement is most commonly used when large assets such as automobiles or household appliances are involved. 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.

Floor planning is a method of financing inventory purchases where a lender pays for assets that have been ordered by a distributor or retailer and is paid back from the proceeds from the sale of these items. The dealer then receives payment hopefully including a profit and remits the balance to the lender who in turn releases the title to the car to the new purchaser. Let s say you make a profit of 3 000 per car sold.