Unit Inventory Financing (Floor Planning) | Practical Law

Unit Inventory Financing (Floor Planning) | Practical Law

This Note describes "floor planning," a financing technique commonly used by dealers of goods to finance individual high value units of inventory. Floor plan finance is an alternative to traditional bulk inventory financing often favored by banks, but it is not suitable for all types of inventory or all borrowers.  This Note explains common terms of floor plan loans and considers commercial considerations underlying this type of financing. 

Unit Inventory Financing (Floor Planning)

Practical Law Practice Note 2-503-5017 (Approx. 18 pages)

Unit Inventory Financing (Floor Planning)

by Practical Law Finance
MaintainedUSA (National/Federal)
This Note describes "floor planning," a financing technique commonly used by dealers of goods to finance individual high value units of inventory. Floor plan finance is an alternative to traditional bulk inventory financing often favored by banks, but it is not suitable for all types of inventory or all borrowers. This Note explains common terms of floor plan loans and considers commercial considerations underlying this type of financing.