Floor Plan Financing

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

Floor plan financing. Monthly desired sales divided by how many times your lot is turned per year multiplied by 12. In this situation you would need to stock 80 units based on 60 desired sales per month and a 40 day average turn time. Retailers use a short term loan to purchase inventory items and the loan is repaid as inventory is sold. 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 plan finance options are popular within the automotive industry. Floor plan financing capture more business through engs floor plan finance programs designed specifically for equipment manufacturing companies and dealers. Our floor plan financing options allow dealers to finance nearly any type of remarketed unit. 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.

Increase sales and improve cash flow while also providing your dealers with a quick and easy option to finance inventory purchases. Floor plan finance companies are uniquely attuned to the needs of auto dealers. This floor plan finance formula is essentially the following.