Inventory Floor Planning Solutions

When the Small Business Administration announced a new dealer floorplan loan program in early June, it was heralded by industry leaders as a breakthrough in solving the credit crunch plaguing the marine industry.

Since then, many dealers have complained that the program does them no good because they can’t find any SBA-approved lenders that offer floorplan financing.

Industry leaders continue to praise the program, however, and say dealers need to put more effort into educating the banks about floorplan financing and about their business.

“We really do feel the SBA floorplan loan program is a first step in improving access to credit for dealers,” says Cindy Squires, legislative counsel for the National Marine Manufacturers Association. “It is going to be a process of educating a lot of regional banks. “It’s not going to be a matter of just flipping a switch.”

As of July 1, dealer floorplan loans were available for a minimum of $500,000 up to $2 million under the SBA 7 (a) loan program. With a maximum repayment term of five years, the loans will come with a 60 to 75 percent government guarantee.

Jim Coburn, president of the National Marine Bankers Association, says dealers need to develop a game plan.

“Look for those who are SBA-approved, make an appointment to see them and tell them about your business and your industry,” Coburn says. “Have a business plan and have your data with you. Some of these banks don’t really know what floorplan lending is. It does take a lot of work on the dealer’s part to get this done. It is relationship building.”

Source Trade Only Today
- Melanie Winters

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