Term Loans

Term Loans

FMSI partners with Distributors and Manufacturers to provide installment and floor-plan loans. Distributors can use the installment financing program to underwrite a sales transaction with a commercial customer or refinance an earlier purchase. Floor-plan loans are used to provide a Distributor’s customers with a flexible payment program that allows them to keep inventory stocked, without hindering cash flow.

Installment financing is designed to underwrite a sales transaction between the Distributor and their commercial customer or refinance earlier purchases. Terms range from three months to three years, with monthly payment amounts designed to assist the customer in repaying the debt while not unduly hindering their operating cash flow. Loan types vary from fully-amortizing to fixed payments or interest only, with balloon payments depending upon customer needs and Distributor approval. Due to the inherent high risk, installment loans are Recourse only.


  • Financing of current sales transactions provides the Distributor with sales proceeds up front, while the customer receives the goods and has the time to pay for them.
  • Term loans allow the customer to continue purchasing from the Distributor without using up all of their available credit on either their in-house account or their ProPower account, which increases sales for the Distributor.
  • Refinancing earlier purchases provides the Distributor with funding on aged receivables that have likely fallen off their bank borrowing base, reduces DSO, and provides customers with a set payment schedule designed within the constraints of their cash flow.
  • With installment loans, the customer signs a note, security agreement, and a personal guaranty. FMSI files UCCs to affirm FMSI’s position as a secured lender. Although the Distributor must repurchase the note in the event of a customer default, the Distributor benefits from the assignment of the security agreement and assumes the secured position.  FMSI handles all collections and will supervise legal proceedings if necessary.
  • Distributors benefit by improving cash flow, increasing working capital, reducing collection problems, and potentially re-establishing a sales relationship with the customer.

Floor-plan loans enable the Distributor to supply goods to customers for inventory purposes. Interest is prepaid for the financing period (typically three months) by either the Distributor or the customer. Floor-plan loans are Recourse only due to the inherent risk of the program.


  • Increase sales by providing financing solutions for your customer.
  • The Distributor receives sales proceeds up front, and the customer pays for items as they are sold.
  • Interest is typically 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.
  • Variety of floor plan structures.
  • Floor plan statements and inventory information available online.
  • Industry experts who understand your business.
  • Fast, same-day processing for payoffs and inventory additions.


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