What is Wholesale Floor Planning aka Inventory Financing?
Floor planning is an alternative wholesale financing solution that allows a Dealer network the ability to maintain a greater level and variety of inventory ‘on the floor’ provided by the Manufacturer or Distributor (OEM) without having to secure a bank loan to purchase it.
The OEM and Finance Company can put together special programs such as interest participation programs, 'free' financing periods, special off season programs, etc.
What are the Benefits to floor planning?
For the Manufacturer or Distributor (OEM): Making it easier for their Dealers to have access to an entire product line rather than selling from a catalog. Improve sales by offering a sponsored and customized financing program dedicated to improving their Dealer’s sales. Being able to technologically monitor asset level details on inventory, turn times and volume trends, etc.. Floor planning tends to increase the dedication of the Dealers and often attracts new Dealers, possibly, in markets that couldn’t be successful in the past.
For the Individual Dealer: The Dealer can maintain a higher inventory level thus improving merchandising across product lines and increasing sales. By having regular inventory reviews and an end-to-end technology system, the Dealer can adjust their sales, marketing plan and inventory, optimized to their specific market.
How does it work?
First, we set up the OEM as a client and customize financing programs specific to the equipment, turn on inventory and industry, i.e. seasonal programs, long-term or short-term programs, curtailments, free financing periods, etc. to offer to their Dealer network.
Next, with the cooperation of the OEM, we contact the Dealers and make available our financial service. We can establish a credit line and provide end-to-end technology solutions to monitor the success of the program to both the Dealer and the OEM.