A loan agreement between Ford Motor Credit and a local Ford dealer is an example of

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This is an example of floor plan financing, which is a type of financing used by vehicle dealerships to purchase and manage their inventory. The dealership borrows money from a lender (in this case, Ford Motor Credit) to purchase vehicles from the manufacturer, with the inventory serving as collateral for the loan. As the vehicles are sold, the dealership pays back the loan and the lender releases the associated collateral.

A Loan Agreement Between Ford Motor Credit and a Local