Floor Financing Agreement

This dealer floor plan and security agreement the agreement is made as of september 28 2007 by and among fountain dealers factory super store inc a north carolina corporation borrower regions bank an alabama state banking corporation together with its successors and assigns lender fountain powerboats.

Floor financing 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. Dealer floor plan and security agreement. How does floor plan financing work specifically to benefit auto dealers. An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product.

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. If the same collateral is being used to support more than one loan there is likely a problem that needs to be addressed by changing the collateral description. 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.

Floor plan finance companies are uniquely attuned to the needs of auto dealers. Every time a new dealer agreement new floor plan agreement or new bank agreement is presented a dealer should compare the collateral descriptions with other financing documents. This agreement made this 13 th day of february 2012 by and between avangard auto finance inc. They are most frequently taken out for periods of between 2 and 5 years although this can vary considerably.

Interest rate floors are utilized in derivative. These loans are made against a specific piece of collateral i e. In this agreement we us and our mean regions bank you and your mean the borrower. Floor plan financing is a revolving line of credit that allows the borrower to obtain financing for retail goods.

This agreement means the floor plan financing agreement. Retailers use a short term loan to purchase inventory items and the loan is repaid as inventory is sold. The dealer then receives payment hopefully including a profit and remits the balance to. What you don t realize is that like most new car dealers a floor plan was used to finance the cars.

When each piece of collateral is sold by the dealer the. Floor plan agreement. 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.