Floor Plan Audits
Truman Mox is an industry leader in Floor Plan Audit Services. We service all major banks, independent and captive finance companies in all 50 states and Canada. Managing your floor plan risks is vital to your portfolio quality.
What are the reasons a Floor Plan Audit is needed?
In today’s finance landscape, assuring the quality of your loan portfolio is important. Floor Plan lending creates significant risk as the collateral is mobile and difficult to manage.
In today’s finance landscape, assuring the quality of your loan portfolio is important. Floor Plan lending creates significant risk as the collateral is mobile, difficult to track and difficult to verify. Financial institutions should be utilizing Floor Plan Audits for numerous reasons including:
• Quarterly or Annual Audits to substantiate collateral value. This is imperative to demonstrate that loan to collateral ratios and loan covenants are being met.
• Loan Origination. The most important time to have a Floor Plan Audit complete is at loan origination. Knowing your collateral before closing is a requirement of many financial institutions.
• Workout Situations. Troubled loans undoubtedly need to have a Floor Plan Audit completed, to verify the current status of a potential collateral situation.
• Buy Sell Situations. Transactions between Buy and Sell parties will also require a Floor Plan Audit to ensure that the Assets/Inventory being transferred are inline with representations in the purchase agreement or financial statements.
• Company Initiated. Dealerships and organizations often order Floor Plan Audits to “get their arms around” what their current floor plan inventory contains.
Whether you are a financial institution or private company. Let the experienced team at Truman Mox solve your needs for any type of Floor Plan Audit needs.
Floor Plan Loans are given to numerous types of businesses. Typically associated with Car Dealerships, but floor plan loans have wide uses in many industries including Automotive, Watercraft, Agricultural Equipment, Mobile Home, Manufacturing and Heavy Equipment, etc.
“Our external auditors required an Audit of several of our Floor Plan Loans collateral positions. Truman Mox came in and provided our bank the Audit document that satisfied our external auditors needs and provided faith to our Board that the collateral still met loan covenant requirements” – Regional Michigan Bank
“The loan was near default, and the client had already missed several loan covenants. Truman Mox was sent out and was able to identify the insufficiency in our expected loan collateral” – National Finance Group focused on Watercraft