Floor planning is a special type of a loan used for financing high-priced inventory like new cars and trucks.

Question

Quizplus · Accepted Answer

Floor planning is indeed a specific type of loan or line of credit used by retailers, especially in the automotive industry, to purchase high-cost inventory such as new cars and trucks. This financing allows dealers to have a variety of vehicles on their lots without having to pay for them upfront, thereby managing cash flow more effectively.

Floor Planning Is a Special Type of a Loan Used