Conditional sales contracts

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Conditional sales contracts

Similar to equipment trust certificates, except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the conditional sales contract.

Conditional Sales Contracts

A sale of an asset in which the buyer assumes possession and may have use of the asset, but the seller retains title until the buyer pays its full price and may repossess the asset if the buyer does not. In exchange for the right to use the asset, the buyer makes payments over an agreed-upon period of time, whether months or years. This arrangement is most common with heavy equipment, machinery, and real estate. See also: Beneficial ownership, Lease.
References in periodicals archive ?
Having no immediate need for construction funds, IBM parks the funds with a subsidiary that makes loans to customers who purchase IBM servers under conditional sales agreements or leasing arrangements.
VeriFone Finance programs include monthly rentals, operating leases, true leases, floor planning, municipal and federal programs, seasonal industry leases, conditional sales agreements and extended-term financing.
Type of financing offered by the leasing companies include tax-oriented finance leasing, short-term operating leases, leveraged leases, conditional sales agreements, off-balance sheet loans and tax-exempt leasing.

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