I originally wrote this article for Powersportsbusiness.com
Most dealers in the powersports industry use floorplan financing. There are some dealers who are able to use floorplan financing for the free interest terms (if available) and then pay out product. The majority of dealers depend on floorplan financing in order to maintain an adequate level of inventory that allows them to offer and sell a variety of product to their customers. There is very little written about the relationship between a dealership and their floorplan lender. We accept that these lenders are a “necessary evil” in order to do business, but what happens when the relationship becomes strained and why did that happen?