How independent dealers in Ohio, Indiana & Illinois secure floor plan funding — and the insurance required to get approved.

Floor plan financing is the lifeblood of most used car dealerships. Whether you’re opening your first lot or expanding your inventory, a floor plan provides the capital you need to purchase vehicles without tying up your own cash.

But lenders won’t approve you — or fund your first purchase — without the right documentation and insurance package.

This guide walks you through:
✔️ How a dealer floor plan works
✔️ What lenders look for during approval
✔️ Insurance and bonds required before funding
✔️ The top floor plan lenders used by small and mid-sized dealers
✔️ How Catanzaro Insurance helps dealers get approved faster

🔧 What Is a Dealer Floor Plan?

A floor plan is a revolving line of credit that lets dealers buy inventory from auctions, wholesalers, and trades without paying upfront. Think of it like a credit card for vehicles — but secured by the cars you purchase.

Dealers use floor plans because they:

• Free up cash flow

• Make it easier to scale inventory

• Reduce time wasted on auction paperwork

• Provide buying power for better inventory

• Keep money available for payroll, recon, and lot expenses

Most independent dealers in the Midwest use floor plans, especially those stocking 10+ vehicles.

📌 What Floor Plan Lenders Look For

Every lender is different, but nearly all evaluate:

1. Your Credit History

A “perfect” score is not required, but lenders look at:

• Payment history

• Existing credit lines

• Current debt

• Business longevity (if applicable)

Even if your credit isn’t ideal, you can still get approved — but with a lower credit limit.

2. Your Dealership Location

Lenders want to see:

• A visible, accessible lot

• Proper signage

• Secure parking

• A professional office or sales area

They want to know their collateral is protected.

3. Business Documents

Expect to provide:

• Driver’s license

• EIN / business registration

• Copy of your lease or property deed

• Dealer license (once approved by BMV/Secretary of State)

• Bank statements (sometimes)

**4. Mandatory Insurance Requirements

This is where most dealers get slowed down or denied.

Floor plan lenders require:

• Garage Liability (specific for dealers—not garage repair shops)

• Dealer Open Lot (DOL) inventory coverage

• Garagekeepers (if you service vehicles)

• Dealer Bond (state required)

Most lenders also require specific liability limits and loss payee wording.

This is exactly what Catanzaro Insurance handles for you.

🛡️ Insurance Required for Floor Plan Approval

Lenders won’t release funds until your insurance is active and compliant.
Here’s what they expect:

Garage Liability Insurance

Required by state licensing + lenders. Protects you from operations-related lawsuits.

Dealer Open Lot (Inventory Coverage)

Covers your for-sale vehicles against:

• Hail

• Wind

• Fire

• Theft

• Vandalism

You can also add False Pretense coverage — extremely important due to title scams and fraud.

Garagekeepers Liability

Required if you appraise, service, or store customer vehicles.

Dealer Bond

Required by Ohio, Indiana, and Illinois licensing boards.

➡️ Catanzaro Insurance structures all of this into a lender-compliant package and sends your COI directly to the lender and BMV.

🏦 Most Common Floor Plan Lenders We Work With

We frequently assist dealers working with:

• NextGear Capital

• Automotive Finance Corporation (AFC)

• Westlake Flooring Services

• Kinetic Advantage

• CarBucks

• Floorplan Xpress

We know each lender’s insurance wording, limits, and approval process.

⚡ How to Get Approved for a Floor Plan

Here’s the fastest path to funding:

1. Pick your lender

Choose the lender with limits, fees, and terms that match your goals.

2. Get pre-approved

They review your credit, location, and documents.

3. Get insurance in place

This is the step where most dealers get stuck.

We help by:
✔ Structuring your policy
✔ Adding your lender as a loss payee
✔ Sending COIs within minutes
✔ Making sure everything is state and lender compliant

4. Funds released

You can now buy from:

• Dealer-only auctions

• Public auctions

• Trade-ins

• Wholesalers

• Other dealers

📈 Why Independent Dealers Choose Catanzaro Insurance

• Ohio-Based, Midwest Reach: Serving OH, IN & IL

• Fast turnaround — COIs sent in minutes

• Floor plan lender expertise

• Audit-ready documents

• Competitive rates for new or growing dealers

• We help with bonds, BMV compliance, and renewals

You focus on inventory. We handle the insurance.

📞 Get a Dealer Floor Plan–Ready Insurance Quote

Whether you’re opening your first lot or expanding inventory, we’ll get you a lender-approved insurance package fast.

📞 Call 614-489-8383 (Press option 1)
📧 Email info@catanzaroinsurance.com

Or use our Auto Dealership Insurance Quote Request form and we’ll build a package tailored to your dealership.

🔗 Helpful Links

• Auto Dealership Insurance 

• How to Start a Used Car Dealership in Ohio

• Used Car Dealer Insurance