U.S. Floorplan Risk Management
U.S. Floorplan Risk Management
Dealer Status Procedures
A dealer status is declared when:
•
Dealer does not satisfy a sold out-of-trust condition (payment not remitted to Ford Credit upon sale of vehicle)
discovered during an audit
•
Dealer fails to pay principal or interest
.
Dealer bankruptcy
•
Other circumstances that warrant immediate action
Once a status is declared Ford Credit may then:
Suspend credit lines
•
Maintain Ford Credit personnel on site
.
Collect titles and keys
.
Secure dealer inventory
•
Issue payment demand letters
Obtain liens on property of guarantors
•
Increase the dealer's floorplan interest rate
Initiate legal action to exercise rights under the floorplan financing agreement
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