Quick definitions used in lender conversations.
| Term | Meaning |
|---|---|
| Advance rate | Percent of vehicle cost financed on the floorplan. Often varies by unit type, age, mileage, and source. |
| Curtailment | Required principal paydown at set time intervals as inventory ages. |
| Audit exception | Inventory/title mismatch discovered during audit (missing unit, missing title, reconciliation gaps). |
| Availability | Remaining credit available after paydowns, curtailments, and holds. |
| Collateral protection | Insurance/coverage requirement to protect floorplan collateral. |