Document background
The Floor Plan Financing Agreement is a specialized financing document used when dealers require funding to purchase and maintain their inventory. This agreement type is particularly suited for businesses in New Zealand that need to finance their stock, such as vehicle dealerships, equipment retailers, or appliance stores. The document establishes a revolving credit facility secured by the financed inventory, incorporating specific provisions required under New Zealand law, including compliance with the Personal Property Securities Act 1999 and relevant financial services regulations. It details the lending terms, security arrangements, operational procedures, reporting requirements, and the rights and obligations of both the financial institution and the dealer. The agreement is structured to provide flexibility in inventory management while protecting the lender's security interest in the financed goods.
