Switching Floorplan Providers: A Dealer’s Guide

Why are more Australian dealers reviewing their current floorplan finance facility?

As businesses grow, many owners start asking, ‘Does our current floorplan facility still suit the way we operate today?’ For an increasing number, the answer is often no. What may have worked previously can begin to create friction as inventory expands, operations become more complex, and dealer expectations evolve. Approval delays, rigid funding structures, poor communication, limited flexibility, and generic bank processes are among the common reasons dealerships begin to reassess their finance arrangements.

The good news is that switching floorplan providers is far more straightforward than many businesses expect. With the right transition process and a lender that understands inventory based financing, Australian dealerships can refinance existing facilities with minimal disruption while improving long-term flexibility and cash flow management.

What motivates dealers to switch from floorplan finance to lenders

Unlike other finance products, the decision to switch floorplan providers is rarely based solely on a lower interest rate. What we tend to find is that dealers often explore switching floorplan providers because the structure itself no longer effectively supports their business. Facilities that once felt adequate can become restrictive as inventory requirements grow, supplier relationships evolve, or dealerships expand into new locations and product categories. In our experience, one of the most common frustrations is the lack of speed. Inventory opportunities move quickly, particularly during seasonal buying periods or supplier allocation windows, and dealers need a lender who can keep up with the pace and act quickly.

Flexibility is another major factor. Dealers often find that their existing lender cannot comfortably accommodate used inventory, demonstrator stock, imported units, or changing stock profiles as their businesses evolve. For dealers experiencing rapid growth, communication is paramount. Many dealers become frustrated with centralised banking structures where relationship management feels disconnected from the realities of day-to-day operations. Over time, these issues can begin affecting more than just funding. They can slow inventory decisions, limit growth opportunities, and reduce operational agility.

Refinancing a facility is not starting from scratch

A common misconception amongst Australian dealerships is that switching floorplan providers requires completely rebuilding their finance structure from the ground up. In reality, refinancing a floorplan facility and switching floorplan providers is typically a structured transition of inventory funding from one lender to another. Existing stock is assessed, eligible inventory is refinanced progressively, and operational processes are transitioned to maintain continuity across the dealership. An experienced floorplan finance provider will guide the process carefully to ensure supplier relationships, stock funding, and day-to-day dealership operations continue running smoothly throughout the transition period.

Here’s what switching floorplan providers typically looks like. Whilst every dealership operates differently, most refinancing transitions follow a relatively similar structure.

Step One: Review of the existing facility

The process generally begins with a review of your current inventory structure and facility floorplan to help determine where your facility no longer aligns with or meets your operational and business needs. This includes assessing:

• Stock profile, mix, and turnover cycles
• Supplier and distributor relationships
• Existing funded inventory
• Limitations of your existing facility and your reporting
• Operational bottlenecks, limitations, and challenges

Step Two: Structuring the new floorplan finance facility

Once your requirements have been established, the new lender can effectively structure a floorplan facility that suits your business. At Soda Capital, we ensure we tailor a floorplan facility that allows for flexibility and long-term business growth. A tailored floorplan facility should effectively support:

• New, used, and demonstrator inventory
• Seasonal stock and sales fluctuations
• Multi-location dealerships
• Timing of imported inventory
• Funding programs that align with distributor operations

Step Three: Credit assessment and approval

Once a tailored floorplan facility has been established, the lender will then complete credit and financial assessments. This includes reviewing:

• Financials and inventory reporting
• Existing supplier arrangements
• Operational processes and trading history

Step Four: Existing inventory is refinanced

Current eligible inventory is refinanced into the new floorplan facility, with the aim of a seamless transition. This stage should be managed effectively to avoid operational interruptions. Your new lender should ensure:

• Preservation of stock availability
• Inventory continuity is maintained
• Supplier payments continue as normal

Step Five: Transition of operational and reporting structures and reporting

Once inventory funding has been transferred to the new floorplan facility, the next step is to transition reporting and operational procedures into the new workflow structure.

The seamless transition will maintain operational flow and prevent any downtime. The movement of the various workflows will likely involve:

• Establishing and setting up reporting requirements
• Transition of supplier payments and inventory reconciliation
• Ensuring facility management processes are structured correctly

Step Six: Support of ongoing business growth

The right floorplan finance facility should be flexible and adaptable, evolving as your business grows and scales. An effective facility should allow for:

• Increases in stock and inventory volume
• Location expansion
• New supplier relationships
• Future business opportunities
• Inventory adaptability

How dealers can minimise disruption during the switch

When switching floorplan providers, preparation and communication are key to ensuring a smooth transition. Dealerships that maintain strong inventory reporting and processes and work closely with the incoming lender throughout implementation will typically experience a smoother transition. The quality of the incoming finance partner also plays a vital role. Specialist inventory providers, like Soda Capital,, will generally have a much stronger understanding of dealership operations, supplier timing, and stock management processes than traditional lenders. This becomes particularly important in industries involving imported inventory, high-value equipment, demonstrator units, or seasonal stock fluctuations, where operational timing is critical. Switching floorplan providers should not cause a disruption to the business;; it should feel like an improvement in how the business operates and is supported.

Why dealers are switching to Soda Capital

Our business focuses exclusively on floorplan and channel finance, supporting businesses across marine, construction equipment, caravans, agriculture, automotive, and outdoor power industries. This specialisation allows facilities to be structured around the realities of inventory-driven businesses rather than broad commercial lending models. In our experience, most dealers who switch floorplan providers are looking for a funding partner that offers greater operational flexibility, faster approvals, clearer communication, and facilities that evolve alongside the business.

Our facilities can be structured to accommodate new, used, and demonstrator inventory, imported stock timing, distributor-aligned funding programs, and multi-location operations where required. Dealers also benefit from direct access to our experienced specialists rather than having to navigate layers of centralised bank processes and automated communication. This human-led responsiveness becomes invaluable when supplier opportunities emerge quickly, or inventory requirements change unexpectedly. For many dealerships, the decision to switch providers is ultimately about more than refinancing debt; it is about partnering with a lender who understands how dealer businesses actually operate and structures funding to support long-term growth rather than restrict it.

When should dealers review their current facility?

For many Australian businesses, the right time to review a facility is before operational pressure becomes a problem. A review is often worthwhile when inventory turnover changes significantly, supplier relationships expand, stock complexity increases, or growth begins placing pressure on existing funding structures. Likewise, if approvals are slowing, communication is more difficult, or the facility is not supporting or adapting to your dealership’s operating model, it might be time to reassess whether the current provider is the right fit.

Better funding structures create better flexibility

Switching floorplan providers should not simply be about replacing one lender with another. It is important to select a lender that tailors a funding structure to support and adapt to your business. The right funding facility should support your inventory as it scales, your dealership’s direction, and the complexity of your operations.

With the right inventory finance partner, refinancing and switching lenders can improve operational flexibility, strengthen supplier relationships, support future growth, and preserve working capital. For dealerships that feel constrained by rigid lending structures or have outgrown their current floorplan facility, switching lenders can provide long-term advantages. At Soda Capital, we work closely with dealers, tailoring floorplan facilities around the reality of their operations and business growth, and ensuring a smooth transition that minimises disruption. To find out how we can better support your dealership, reach out to our team today.