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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.


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This paper examines how companies can offer repayment programs that satisfy the needs of the market from extended term payments including revolving credit to being able to offer conditional sales contracts and nominal option leases.
The Company has executed conditional sales contracts for sale of the properties it received in connection with two of these credit relationships.
Newcourt originates the financing of a broad range of equipment and capital assets by way of secured loans, conditional sales contracts and financial leases.
 
 
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