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Floor Planning Finance
Source:
Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
A form of inventory financing
involving the use of trust receipts; also known as trust receipt financing.
Under floor planning financing, the borrower borrows funds with
which to pay for goods purchased.
The borrower holds the goods in trust for the bank by issuing the
bank a trust receipt. As
the borrower sells the goods, the borrower forwards the proceeds to the
bank.
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