CHANNEL INSIDER: Use Financing to Boost SalesCredit Options for Solution Providers
Floor Plan Financing
You may order the goods from your distributor on Monday, but your customer doesn't want to pay you for those goods until the end of the month or later. Most distributors offer floor plan financingor 30 days or more of free creditto cover the difference. Sometimes distributors or vendors may extend supply chain financing for longer periods. This financing is usually backed by a third-party credit provider. Once a floor plan credit application is approved, you can designate floor plan financing when you place orders with the distributor. The distributor will get approval from the third-party financer, and, once approved, the distributor processes the order for shipping.