In time-sales finance,what do dealers do when they cannot themselves finance installments or conditional sales contracts on a purchased equipment?

Question

Quizplus · Accepted Answer

When dealers cannot finance installments or conditional sales contracts themselves, they can sell and assign the installment contract to a bank. This is called "assignment of contract," where the bank takes over the collection of payments from the buyer, and the dealer receives the full purchase price of the equipment immediately. This allows the dealer to free up capital and avoid the risk of default from the buyer.

In Time-Sales Finance,what Do Dealers Do When They Cannot Themselves