1. Skip to Menu
  2. Skip to Content
  3. Skip to Footer>

Floor Plan

This type of financing is defined as a revolving line of credit for inventory financing to retailers of large ticket items (mainly vehicles).  A security interest claim is taken on the inventory and the debt is repaid upon the sale of the inventory.  In the case of vehicle financing, the title to the vehicle may be held by the Bank (with lien not recorded) and the title released upon payment in full.  A curtailment schedule is typically established for each item placed on the floor plan.

The generally accepted floor plan finance definition identifies this funding option as a short-term revolving credit solution to managing the costs of unsold inventory. Essentially, floor plan finance companies provide funds secured by the inventory to manage the ongoing costs of operations. Once the inventory has been sold, the loan can be repaid; this makes added funds available for continued management of the ongoing operations of the company. Floor plan finance arrangements are often used by automotive dealerships and large equipment sales companies, as they depend on fewer large sales rather than numerous smaller sales of their products. Most floor plan finance companies specialize in a particular field of enterprise and provide funding specifically for businesses in that industry.

CNF Exchange can provide added options for these financial arrangements for businesses. Companies can submit their floor plan finance proposals directly to lenders through the online interface provided by CNF Exchange, allowing them to obtain the funds they need in less time than with traditional lending methods.


Floor Plan Finance Funding Source Registration