Asked by Crissy Hogue on May 06, 2024

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A floor plan can also be called a(n) :

A) Unsecured accounts receivable financing.
B) Banker's acceptance arrangement.
C) Secured inventory loan.
D) Revolving credit arrangement.
E) Non-committed line of credit.

Floor Plan

In finance, it refers to a type of short-term loan used by retailers to purchase high-cost inventory such as automobiles. In architecture, it's the scale diagram of the arrangement of rooms in a building.

Secured Inventory Loan

A loan that is backed by the borrower's inventory as collateral to reduce the lender's risk.

Accounts Receivable Financing

A type of financing arrangement where a company uses its outstanding invoices or receivables as collateral to secure immediate working capital from a lender.

  • Examine the effects of payment policies on the cash flow cycle.
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LS
Leandro Santana isaacMay 12, 2024
Final Answer :
C
Explanation :
A floor plan is a type of secured inventory loan where the loan is specifically tied to the inventory of the borrower. This means the inventory itself serves as collateral for the loan.