U.S. Floorplan Risk Management

U.S. Floorplan Risk Management Underwriting and Credit Review Process Real Estate Holding Company Dealer Principal Holding Company Personal guarantees from many dealers Secondary Collateral Assets • • • Stocks, bonds, cash Non-dealer real estate Other assets, for example, boat, plane, jewelry and furniture Unfloored used Assets Dealer (Borrower) Secondary Collateral Secondary Collateral Assets Land Buildings . inventory Furniture, fixtures, parts, accessories and equipment Dealer net worth Dealer Structure Dealers vary in size and complexity - from single store to multi-point/multi- franchise organizations Many dealers use a holding company structure similar to the one shown here Collateral The financed vehicles are the primary collateral for dealer floorplan loans For many dealers, Ford Credit also obtains personal guarantees and secondary collateral in the form of additional dealer assets, including dealer-adjusted net worth and real estate equity Dealers have significant "skin in the game," which provides a strong incentive for dealers to repay floorplan loans 80 Ford FORD CREDIT Primary Collateral Financed new and used vehicles

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