Floor Plan Financing Agreement Form

For example automobile dealerships utilize floor plan financing to run their businesses.

Floor plan financing agreement form. Floor plan financing is a specialized segment of lending where banks provide working capital support for retailers of consumer goods such as automobiles recreational vehicles boats and big ticket appliances. In this agreement we us and our mean regions bank you and your mean the borrower. This agreement means the floor plan financing agreement. Floor plan finance companies are uniquely attuned to the needs of auto dealers.

Let s say you make a profit of 3 000 per car sold. This agreement made this 13 th day of february 2012 by and between avangard auto finance inc. Dealer floor plan and security agreement. Floor plan agreement.

From utilizing auto dealer floor plans to stocking seasonal inventory tips for managing a successful lot are only a click away. The dealer then receives payment hopefully including a profit and remits the balance to. These floor plan finance formulas incorporated with your turn time can help to make or break your dealership s profitability. Capitalized terms used in this agreement and not otherwise defined are used with the meanings set forth in schedule i any undefined terms shall have the meaning as set forth in the alabama uniform commercial code.

And autosource enterprises inc. What you don t realize is that like most new car dealers a floor plan was used to finance the cars. Case studies supplementing working cash with a floor plan is a tried and true method to grow business. Generally the large investment and or slow cash conversion cycle limits a retailer s ability to internally finance its inventory.

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. 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. Avangard a corporation organized under the laws of the state of pennsylvania having its principal place of business at 2708 commerce way suite 300 philadelphia pa 19154. Floor planning is a form of financing for large ticket items displayed on showroom floors.