Floor Plan Finance Agreement

And autosource enterprises inc.

Floor plan finance agreement.

Floor planning is a form of financing for large ticket items displayed on showroom floors. Floor plan agreement. 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. The dealer then receives payment hopefully including a profit and remits the balance to the lender who in turn releases the title to the car to the new purchaser.

Floor plan finance companies are uniquely attuned to the needs of auto dealers. 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. Like any other financing facility the line must fit the financing needs of the borrower with some restraints to avoid excessive leveraging or over extension. This agreement made this 13 th day of february 2012 by and between avangard auto finance inc.

A good rule of thumb is new car floor plans that allow for 90 days of inventory and used floor plan lines that allow for 60 days of inventory. How does floor plan financing work specifically to benefit auto dealers. Floor plan financing is also done for large appliances mobile homes and boats among other items and these products are usually sold to consumers with a financing contract. In this agreement we us and our mean regions bank you and your mean the borrower.

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