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Installment Loans
Installment financing is designed to underwrite a sales transaction between the
wholesaler and their commercial customer or refinance earlier purchases. Terms range from three months to
three years with monthly payment amounts designed to either fully amortize the loan or a set payment amount
to partially amortize the loan with a final balloon payment depending upon the customer's financial situation.
Installment loans are recourse only and typically qualify for the interest rebate program.
Benefits of Installment Financing:
- Financing current sales transactions provides the wholesaler with sales proceeds
upfront while the customer receives the goods and the time to pay for them.
- Refinancing earlier purchases provides the wholesaler with funding on aged
receivables, reduces DSO, and provides customers with a set payment schedule designed within the
constraints of their cash flow.
- All collections are performed by FMSI.
- The wholesaler improves cash flow, satisfies the customer, increases
working capital, and reduces collection problems.
- Participation in the interest rebate program generates income for the wholesaler.
Floor-Plan Loans
Floor-plan loans enable the wholesaler to supply goods to customers for inventory
purposes. Interest is prepaid for the financing period (typically three months) by either the
wholesaler or the customer. Floor-plan loans are recourse only and typically qualify for the interest
rebate program.
Benefits of Floor-Plan Loans:
- The wholesaler receives the sales proceeds upfront and the customer pays
for the items as they are sold.
- Interest is prepaid on renewable three-month terms.
- The customer is able to keep inventory stocked without hindering cash flow and
without a bank line of credit.
- Particiption in the interest rebate program generates income for the wholesaler.
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