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1. Parties: Identifies the finance provider (lender) and the dealer (borrower), including their legal names, addresses, and any relevant corporate details
2. Background: Sets out the context of the agreement, including the dealer's business nature and the purpose of the floor plan financing arrangement
3. Definitions: Defines key terms used throughout the agreement, including but not limited to 'Inventory', 'Advance Rate', 'Eligible Inventory', 'Floor Plan Loan', and 'Security Interest'
4. Facility and Purpose: Details of the credit facility, including the maximum credit limit, purpose of the financing, and any sub-facilities
5. Advance Mechanics: Procedures for requesting and obtaining advances under the facility, including required documentation and conditions
6. Interest and Fees: Specifies interest rates, calculation methods, payment schedules, and all applicable fees
7. Security Interest: Details of the security interest being granted over the inventory and other collateral, including PPSA requirements
8. Representations and Warranties: Standard and specific representations and warranties from the dealer regarding business, inventory, and compliance
9. Covenants: Ongoing obligations of the dealer, including financial covenants, reporting requirements, and operational covenants
10. Inventory Management: Requirements for inventory control, storage, maintenance, and reporting
11. Insurance: Required insurance coverage for inventory and other insurable risks
12. Events of Default: Circumstances constituting default and consequences thereof
13. Enforcement Rights: Lender's rights and remedies upon default, including inventory liquidation rights
14. General Provisions: Standard boilerplate provisions including notices, amendments, governing law, etc.
1. Multi-Location Provisions: Required when dealer operates multiple locations, specifying location-specific requirements and controls
2. Cross-Border Provisions: Needed for dealers who operate in multiple jurisdictions or import inventory from other countries
3. Floor Plan Audits: Detailed audit rights and procedures, typically included for larger facilities or higher-risk dealers
4. Manufacturer Agreements: Required when specific arrangements exist with manufacturers or suppliers regarding inventory financing
5. Intercreditor Provisions: Needed when there are multiple lenders or existing security interests
6. Environmental Compliance: Required for dealers handling potentially hazardous inventory or operating in environmentally sensitive locations
7. Guarantees: Required when personal or corporate guarantees are part of the security package
1. Schedule A - Eligible Inventory: Detailed description of inventory types eligible for financing and their respective advance rates
2. Schedule B - Borrowing Base Certificate: Form of certificate for calculating available credit based on eligible inventory
3. Schedule C - Advance Request Form: Standard form for requesting advances under the facility
4. Schedule D - Locations: List of approved locations where inventory may be stored
5. Schedule E - Financial Covenants: Detailed financial covenants and calculation methodologies
6. Schedule F - Insurance Requirements: Specific insurance requirements and minimum coverage amounts
7. Schedule G - Fees: Detailed breakdown of all fees, including calculation methods and payment schedules
8. Appendix 1 - Reporting Requirements: Forms and templates for required periodic reporting
9. Appendix 2 - Security Registration Details: PPSA and other security registration requirements and forms
Automotive
Heavy Equipment
Recreational Vehicles
Marine
Agricultural Equipment
Construction Equipment
Manufacturing
Industrial Equipment
Technology Hardware
Home Appliances
Legal
Finance
Treasury
Risk Management
Compliance
Operations
Credit Administration
Asset-Based Lending
Commercial Banking
Dealer Operations
Security Administration
Inventory Control
Chief Financial Officer
Finance Director
Treasury Manager
Credit Manager
Commercial Lending Officer
Dealer Principal
Inventory Manager
Financial Controller
Risk Manager
Legal Counsel
Compliance Officer
Operations Manager
Floor Plan Administrator
Asset-Based Lending Manager
Security Registration Officer
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