Channel

Floor-plan financing support

A manufacturer subsidy covering the interest a dealer pays to finance inventory, typically for a defined free-floor period.

Common in equipment and vehicle distribution, where units are high-value and can sit on a dealer lot for months. The manufacturer absorbs the carrying cost for an agreed period to keep the channel stocked.

Because it is calculated from ageing reports that are point-in-time snapshots, recalculating a prior period after a correction is frequently impossible — which makes the number hard to audit and easy to overpay.

Where this term is load-bearing

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