Car Dealer Floor Stock Financing
Fund your car showroom inventory without locking up working capital. Bring in more units, stock the models that move, and turn over inventory faster, all with a credit line that adjusts to your business cycle.
Fund your car showroom inventory without locking up working capital. Bring in more units, stock the models that move, and turn over inventory faster, all with a credit line that adjusts to your business cycle.
Floor stock financing (also called inventory financing or floorplan financing) is a revolving credit facility used by car dealers to fund the purchase of vehicles for their showroom. Instead of paying upfront for every unit, the dealer repays as each car is sold.
For dealers, this means more inventory, healthier cash flow, and the ability to seize opportunities, like bulk purchases or auction lots, without waiting for prior stock to clear.
How dealers typically use it:
Stock up on multiple units without depleting working capital
Buy at auctions or trade-in events where speed matters
Hold stock in showroom for longer sales cycles
Smooth out seasonal demand without juggling cash
Reduce reliance on supplier credit terms
Grow inventory variety to attract more walk-ins
Why Choose Tembusu?
We assess dealerships on commercial performance, not just credit score. Our facilities scale with your turnover, and our team understands the rhythms of the used car trade.
Tell us about your requirements and a specialist will be in touch within the day.
No obligation. Strictly confidential.
Key features
Revolving Line of Credit
Draw down on the facility for each new car. As you sell and repay, the limit replenishes.
Flexible Repayment Terms
Repayment terms are tied to the sale of the financed inventory, meaning dealers repay the loan when the vehicles are sold.
Sector-aware underwriting
We assess your dealership's actual turnover, cash flow, and stock-aging, not just a P&L.
Facility grows with you
As your turnover grows, we'll review and increase the facility limit.
Our process
1
Discovery call
Tell us about your dealership, stock holding, and the facility size you have in mind.
2
Submit financials
Send your latest accounts, bank statements, and stock list. We assess turnover quality and stock-aging.
3
Facility approval
Our credit team approves your facility size, drawdown limits, and pricing. A clear facility letter, no hidden fees.
4
Start drawing down
Draw down per vehicle as you stock. Drawdowns settle within hours, documentation handled by our team.
What you need
Eligibility criteria
Licensed used car dealers in Singapore
Dealerships operating for 12 months or more
Existing showroom or registered trade premises
Active dealer licence from LTA
Demonstrable monthly turnover
Documents required
ACRA business profile and shareholder details
Latest 2 years of financial statements
6 months of business bank statements
Current stock list with purchase dates
LTA dealer licence and showroom tenancy documents
Personal documents for directors and guarantors
What's the typical facility size?
Facility sizes are scoped to your monthly turnover and stock-holding pattern. We work with dealers running anywhere from a small specialty showroom to a high-volume operation. We'll size the facility against what your business actually moves.
How is interest charged?
Interest is typically charged per unit, for the period the car sits on your floor. When a vehicle sells and you repay the drawdown, interest accrual stops for that unit. This aligns the cost of financing with how quickly you actually move stock.
What happens if a unit doesn't sell quickly?
Each drawdown carries a maximum holding period, typically 90 to 180 days, depending on your facility terms. If a unit nears that limit, we'll discuss options: extension, refinance, or repayment from your working capital.
Can I draw down at car auctions?
Yes. We process drawdowns within hours, which is critical for auction settlement. Just let our team know in advance and we'll have the funds ready against your bid limits.
Do I need property as additional security?
Not always. The facility is primarily secured against the vehicles themselves. Additional security or personal guarantees may be requested for larger facilities or new dealerships without an established track record.
How long does approval take?
From submission of full documents to facility letter, expect around 5 to 10 working days. We aim to give an indicative response within 48 hours so you know where you stand early.
Can my facility limit increase over time?
Yes. We review facility utilisation and turnover periodically. As your dealership grows, we'll work with you to scale the limit up so the financing doesn't bottleneck your inventory.
Set up a floor stock facility that scales with your dealership. Talk to our team about indicative terms today.