Floor plan lenders aren't looking for a perfect dealer. They're looking for a dealer who can prove three things: you're licensed to sell, you'll pay off each unit when it sells, and you have enough cash to handle curtailments and recon while inventory turns.
Here's exactly what goes into that decision, the documents to have ready, and what to do if one box isn't checked yet.
The core requirements at a glance
| Requirement | What lenders typically want | If you fall short |
|---|---|---|
| Dealer license + bond | Active state dealer license and surety bond | No workaround - get licensed first |
| Personal credit | Around 600+ for many automotive programs; 680+ opens more lenders | Smaller starting line, stronger guarantor or more cash in the bank |
| Time in business | 1-2 years of dealer operations preferred | New dealers start with smaller lines that grow with payoff history |
| Bank statements | 3-6 months showing steady deposits and no repeated overdrafts | Personal statements plus a written inventory plan |
| Industry experience | Years buying, selling or managing at a dealership | Lean on credit, cash reserves and a conservative first line |
| Insurance | Garage liability + dealer open-lot coverage, lender as loss payee | Required before the first draw |
Documents to have ready
- Dealer license and surety bond certificate
- 3-6 months of business bank statements (all pages)
- Most recent business tax return or a year-to-date P&L if you've been operating a year or more
- Government ID for every guarantor
- Certificate of insurance showing open-lot coverage
- Lot lease or proof of ownership for your location
- Auction access credentials if you buy at dealer auctions
Send a complete file the first time
Missing statement pages and an outdated insurance certificate cause most floor plan delays. A complete file on day one is often the difference between a decision in hours and a back-and-forth that eats a week.
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How lenders size your first line
Your line is sized to what you can realistically turn: monthly unit sales, average unit cost, how long cars sit, and your payoff history. Newer independent lots commonly start between $50K and $250K; established high-volume dealers run into the millions.
The line grows the same way it starts - on evidence. Six to twelve months of clean, on-time payoffs and passed audits is usually what opens the conversation about an increase. Use the calculator below to see what line your target inventory actually needs.
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Independent floor plans typically run 9-13%
Floor / draw fee charged on each unit
First curtailment due at
Carry cost per unit as it ages
Amber = past your first curtailment, when a principal paydown is also due.
Carry cost per unit
$319
1.8% of unit cost · $5.42/day in interest
Your average unit sells before its day-60 curtailment - no principal paydown on a typical unit.
Compare floor plan offersEstimates for illustration only - not a loan offer or commitment. Actual rates, terms and fees depend on the lender, your credit and financials, and the specific deal.
What gets a floor plan application declined
- No active dealer license, or a license that's lapsed or under review
- Recent out-of-trust history with another floor plan company
- Repeated NSFs or overdrafts in recent bank statements
- Inventory or sales numbers that don't match the deposits in your statements
- Very thin credit with no guarantor support or cash reserves behind it
Disclose past out-of-trust issues up front
Floor plan lenders share and check history. A past out-of-trust event you explain - what happened and what changed - is survivable. One the lender finds on its own usually ends the conversation.
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Why dealers apply for floor plan through Dealerun
One application reaches funding partners who specialize in dealer floor plans, so a file that doesn't fit one lender's box can still fit another's. Lines from $50K to $10M, decisions in hours, and no credit impact to check your options.
Check your floor plan options in two minutes
No credit pull. See which floor plan structures fit your lot before you send a single document.
Frequently asked questions
What credit score do I need for floor plan financing?+
Many automotive-focused floor plan programs work from around 600, weighing dealer experience and cash reserves alongside the score. Above 680 you'll see more lenders and better pricing.
Can I get floor plan financing without a dealer license?+
No. Floor plan lenders only finance licensed dealers, because the line exists to buy inventory for resale. Get your state dealer license and bond in place first.
How long does floor plan approval take?+
With a complete file, many lenders decide within a day or two. Setup - insurance, auction access and the first audit - can add a few more days before your first draw.
Do I need a physical lot for floor plan financing?+
That depends on your state's dealer licensing rules and the lender. Most expect a licensed location where floored units are kept; some work with online or wholesale dealers using GPS or photo audits.
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