Floorplans are a useful way for boat dealers to increase their inventory through financing. Unfortunately, market fluctuations that reduce the number of interested, qualified buyers or poorly selling boats can leave many dealers facing a curtailment period on some of their boats. During this time, we can work with dealers to get the cash they need to manage their floorplan financing and keep their businesses running.
We Understand the Floorplan System
While we don’t use this financing model for our inventory, we do understand intimately how it works and the disadvantage that dealers can find themselves in with aging inventory. While there are different structures and stages of floorplan loans, it is primarily about time and money. The longer a boat is in inventory, the higher the interest rate to be paid. At some point, the entire loan could become due – both principle and interest. This process of writing down inventory-aged boats means that some dealers are forced to sell a boat for below retail numbers to have cash on hand to pay the loan and to operate the business.
But there is another option.
Work with Global Marine
When dealers reach the point in their floorplan loan where they must sell inventory for a painfully low price to avoid a default, they need to call Global Marine Brokerage. We can purchase the boat, providing you with the cash you need to manage the floorplan and operate your business. But the benefits don’t stop there.
Although the boat is now in our inventory, you can still help Global Marine sell it for, hopefully, at a market-driven price rather than below retail. This becomes a win-win for both companies.
For this process to be successful, it is important for the dealer to be in regular communication with Global Marine regarding the boat’s current market value. This allows the dealer to make the best decision regarding whether or not to cash the boat out now by having Global Marine purchase the boat outright, or keep it with the understanding that it may take 2 to 3 years before a down market returns to some semblance of normalcy.
We understand this industry and the difficult decisions you face, but you don’t have to do everything alone. Please call us at (727) 498-6477 to start the conversation. There are many ways to structure a deal that is a win-win for both of us, and you know our reputation for integrity, so let us be a part of your solution.