Floorplan Finance FAQs

Floorplan finance is one of the most powerful funding tools available to distributor networks and dealers in Australia. However, it is also one of the most misunderstood forms of finance. Whether you operate in construction equipment, marine, caravans, agriculture, automotive, or outdoor power equipment, understanding how floorplan finance works can help you make better decisions about inventory, cash flow, and business growth. Below are the most common questions we get asked by distributors and dealers. Clear answers, no jargon, just simple, effective support to guide you.

What can be funded under a floorplan facility?

A common misconception is that floorplan finance is only available for new stock. In practice, modern floorplan finance facilities can fund a broader range, depending on the structure and nature of the industry.

Most floorplan finance facilities can fund:

• New inventory stock
• Used units and trade-ins
• Demonstrator models
• Imported stock (depending on the structure)
• High-value machinery
• Seasonal stock builds

The exact parameters will depend on the lender’s risk tolerance and the dealer’s stock profile. Tailored facilities are particularly important in industries where inventory turnover varies significantly between product categories or is influenced by seasonal factors. Soda Capital specialises in structuring floorplan finance that reflects the complexity of real dealer inventory including mixed new and used profiles.

For more details on the specific categories that floorplan finance can fund read our guide on What Can Be Funded Under a Floorplan Finance Facility.

What businesses are eligible for floorplan finance?

Eligibility is assessed on a case-by-case basis and largely depends on business performance and stock profile. Floorplan finance lenders will typically assess:

• Finance stability
• Trading history
• Industry experience
• Inventory turnover
• Reporting systems

Soda Capital works with both established dealer groups and growing operators. We structure facilities to suit the scale and maturity of your dealership. If you’re unsure whether you qualify, feel free to contact our team, who will be able to clarify the options available.

How long does it take to get approved?

Generally, approval time depends on documentation readiness. At Soda Capital, approvals are designed to move quickly, often within days of financials and stock details being submitted. Speed matters when supplier stock becomes available. The right funding partner will move at the dealer’s pace.

Our clients benefit from:

• Fast credit assessment
• Clear documentation requirements
• Direct access to decision-makers
• No call centre bottlenecks

What happens if a unit doesn’t sell quickly?

Slow-moving stock can be a risk with floorplan financing and stock age is the single most important indicator with any floorplan facility. It is also the easiest to underestimate or to get wrong. The right lender doesn’t just finance stock; they help you to manage it intelligently.

If units remain unsold:

• Interest continues to accrue
• Facility capacity tightens
• Margin pressure increases
• Strong risk management is essential

Our team works closely with dealers to structure facilities that reflect realistic turnover cycles and seasonal patterns. Clear reporting systems are integral to providing visibility into ageing stock.

You can explore this further in Managing Risk in Floorplan Finance.

How do repayments work?

Repayments are typically triggered when the funded unit is sold. Whilst stock remains in inventory, interest will accrue on the funded amount. Once the unit is sold, the principal is repaid, and the facility becomes available again for new stock. This revolving model creates natural cash flow alignment.

With Soda Capital, Australian dealers benefit from:

• Clear repayment structures
• Transparent interest calculations
• No hidden fee surprises
• Real-time visibility of funded stock

Can a floorplan facility grow as my business expands?

Absolutely, it can, and it should. One of the major advantages of working with a specialist floorplan and distribution lender like Soda Capital is scalability. We design facilities with growth in mind, so your funding doesn’t become a ceiling preventing business growth.

As turnover increases, facilities can evolve to support:

• Higher inventory levels
• Additional branches
• Broader product categories
• Seasonal expansions

Why work with Soda Capital instead of a bank?

Many dealers and distributors assume inventory funding should come from a bank. After all banks provide business loans, overdrafts, and asset finance, so why not floorplan finance as well? The difference lies in specialisation. Traditional banks are structured to provide broad, low-risk lending across multiple industries. Their credit frameworks are a one-size-fits-all approach and are designed for property lending, general working capital, and long-term assets, not always for dynamic, inventory-driven dealership models.

Floorplan finance, when done properly, requires a deep understanding of how dealers actually operate and how inventory moves across industries. A specialist floorplan lender will provide dealer-focused inventory funding.

The difference with floorplan finance lies in:

• Industry specialisation
• Faster approvals
• Flexible limits
• New, used, and demo funding capabilities
• Transparent fee structures
• Direct access to decision-makers
• Facilities built around seasonality and turnover

The result is funding that moves at dealer pace and scales with business growth, rather than a generic lending structure that may limit flexibility. Partnering with a floorplan finance lender that understands how dealerships operate can make a meaningful and significant difference to your business.

What are the benefits of having Soda Capital as my approved distributor supplier?

With Soda Capital as your approved distributor supplier, you can access more than just funding. We provide alignment between your distributor network, your dealerships, and your inventory structure. When a funding partner is aligned with your manufacturer or distributor, the process of acquiring and funding stock becomes significantly more streamlined. Documentation requirements are clearer, approval pathways are faster, and inventory funding is structured around the way your product chain operates.

For dealers, this can mean:

• Faster funding when new stock becomes available
• Simplified on-boarding for approved product lines
• Facility structures tailored to distributor programs
• Clear visibility over funded inventory
• Reduced administration friction

Our Australian floorplan and distribution finance facilities are designed around real inventory cycles, including seasonality, new and used stock profiles, and multi-location dealer operations. Rather than adapting your business to a generic lender’s framework, when you partner with Soda Capital, you gain a funding partner that understands your distributor relationships and structures facilities accordingly. Ultimately, being supported by Soda Capital as an approved distributor supplier means your inventory funding works in sync with your supply chain, giving you the confidence to stock competitively, preserve cash flow, and grow without unnecessary friction.

Have you considered floorplan finance?

When managed and structured properly, floorplan finance provides distributor networks and dealerships in Australia with a powerful balance between growth and liquidity. It enables businesses to:

• Maintain competitive inventory levels
• Preserve working capital
• Improve turnover efficiency
• Scale sustainably

If you are considering a floorplan finance facility, contact our team for more information.