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Floor Plan Financing Agreement for the United Kingdom

Floor Plan Financing Agreement Template for England and Wales

A Floor Plan Financing Agreement under English and Welsh law is a specialized financing arrangement where a lender provides credit to a dealer to finance their inventory. The agreement establishes the terms for the revolving credit facility, security arrangements over the inventory, reporting requirements, and enforcement mechanisms. It is governed by English law and complies with UK financial regulations, including FCA requirements and relevant consumer protection legislation where applicable.

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What is a Floor Plan Financing Agreement?

The Floor Plan Financing Agreement is essential for businesses requiring substantial inventory financing, particularly in sectors such as automotive, agricultural equipment, and recreational vehicles. This agreement, governed by English and Welsh law, enables dealers to maintain inventory without immediate capital outlay. It includes comprehensive terms covering credit facilities, security interests, operational procedures, and default remedies, while ensuring compliance with UK financial regulations and industry standards.

What sections should be included in a Floor Plan Financing Agreement?

1. Parties: Identification of financing party (lender) and dealer/retailer (borrower)

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms including 'Inventory', 'Financing Amount', 'Security Interest', 'Default Events'

4. Facility Terms: Core financing terms including credit limit, interest rates, repayment terms

5. Security Arrangements: Details of security interest over inventory and other collateral

6. Representations and Warranties: Standard declarations by borrower regarding business status and inventory

7. Covenants: Ongoing obligations of the borrower including reporting requirements

8. Default and Enforcement: Events of default and lender's remedies

What sections are optional to include in a Floor Plan Financing Agreement?

1. Insurance Requirements: Optional section detailing specific insurance obligations for inventory when special coverage is needed

2. Cross-Border Provisions: Additional terms for international operations when dealer operates in multiple jurisdictions

3. Manufacturer Relationships: Terms regarding relationships with manufacturers when manufacturer agreements affect financing

What schedules should be included in a Floor Plan Financing Agreement?

1. Schedule of Inventory: Detailed list of financed inventory items

2. Pricing Schedule: Interest rates, fees, and charges applicable

3. Form of Compliance Certificate: Template for periodic compliance reporting

4. Security Documentation: Forms of security documents and registrations

5. Operating Procedures: Day-to-day procedures for inventory management and reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions









































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Industries

Consumer Credit Act 1974: Primary legislation governing consumer credit arrangements in the UK. Relevant for floor plan financing if there's any consumer financing element.

Financial Services and Markets Act 2000: Fundamental legislation establishing the regulatory framework for financial services in the UK, including financing arrangements.

Sale of Goods Act 1979: Key legislation governing the sale of goods and relevant for the underlying assets in floor plan financing.

Bills of Sale Acts 1878 and 1882: Historical legislation still relevant for certain aspects of security over movable goods.

Enterprise Act 2002: Contains important provisions regarding insolvency and enforcement of security interests.

Companies Act 2006: Governs the registration of charges and corporate aspects of secured financing arrangements.

Registration of Charges Regulations 2008: Specific regulations detailing requirements for registering security interests and charges.

FCA Regulations: Financial Conduct Authority regulations governing conduct and compliance in financial services.

PRA Requirements: Prudential Regulation Authority requirements for financial institutions engaging in secured financing.

CONC Rules: Consumer Credit sourcebook rules providing detailed regulations for consumer credit activities.

Money Laundering Regulations 2017: Anti-money laundering requirements applicable to financial arrangements and transactions.

Data Protection Act 2018: UK implementation of GDPR, governing the handling of personal data in financial arrangements.

Unfair Contract Terms Act 1977: Controls unfair terms in contracts, particularly relevant for standard form financing agreements.

Consumer Rights Act 2015: Protects consumer interests and may be relevant if the financing has a consumer element.

Financial Collateral Arrangements Regulations 2003: Specific regulations governing financial collateral arrangements in secured financing.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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