DEFINITION of 'Time-Sale Financing'

A form of indirect dealer lending or financing used by banks or other third parties. Under time-sale financing, the borrower buys installment sale contracts from the dealer and then makes payments to the dealer.

BREAKING DOWN 'Time-Sale Financing'

Time-sale financing deals are usually sold at a discount to face value. In most cases, this is done in tandem with dealer floor planning. Banks are the most common borrowers in these scenarios, but other borrowers use this form of financing as well.

RELATED TERMS
  1. Dealer Incentive

    A corporate sales strategy in which the price a dealer has to ...
  2. Dealer Financing

    Loans that are originated by a retailer to its customers and ...
  3. Purchase and Resale Agreements ...

    An arrangement between the Bank of Canada and dealers whereby ...
  4. Privilege Dealer

    An individual or a securities firm that is registered as a market ...
  5. Dealer Market

    A financial market mechanism wherein multiple dealers post prices ...
  6. Markup

    The difference between an investment's lowest current offering ...
Related Articles
  1. Insights

    What's a Dealer Market?

    In a dealer market, market participants buy and sell through dealers who are designated as market makers.
  2. Investing

    What Does a Dealer Do?

    Dealers possess certain qualities that distinguish them from brokers and traders.
  3. Personal Finance

    Watch the Fees on Your New Car - They Can Add Up!

    If you’re in the market for a new car, the asking price isn’t the only number you should be negotiating. The fees can cost you if you aren’t careful.
  4. Investing

    A Look At Primary And Secondary Markets

    Knowing how the primary and secondary markets work is key to understanding how stocks trade.
  5. Trading

    Understanding The Spread in Retail Currency Exchange Rates

    Understanding how exchange rates are calculated and shopping around for the best rates may mitigate the effect of wide spreads in the retail forex market.
  6. Investing

    How To Get A Good Deal On A Used Car

    Why are prices quoted by dealers and private sellers so disparate? Read on to find out how to use that info to your benefit when buying a used car.
  7. Small Business

    What is Equity Financing?

    Companies that are short on cash may need financing to pay for short-term needs or long-term capital expenditures.
  8. Managing Wealth

    Before You Sell a Work of Art

    A reputable art dealer can help you sell the painting or sculpture you own. How to find the right gallery and what to ask for in a consignment agreement.
  9. Investing

    The Foreign Exchange Interbank Market

    Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you.
  10. Investing

    What Does Finance Cover?

    Finance is the study of banking, leverage, credit, capital markets, money and investments, along with how they are used by individuals and companies.
RELATED FAQS
  1. What are the differences between installment sales and credit sales?

    Determine the differences between credit sales and installment sales, which businesses often offer their customers for deferred ... Read Answer >>
  2. What is the difference between a repurchase agreement and reverse repurchase agreement?

    Learn how a repurchase agreement is a form of collateralized lending and a reverse repurchase agreement is a form of collateralized ... Read Answer >>
  3. What are the benefits for a company using equity financing vs. debt financing?

    Learn what some of the principal advantages are for a company that chooses to utilize equity financing in preference to debt ... Read Answer >>
  4. How does the International Chamber of Commerce define the term 'Free on Board' (FOB)?

    Find out more about the International Chamber of Commerce, Incoterms rules and how the International Chamber of Commerce ... Read Answer >>
  5. How does a credit crunch occur?

    A credit crunch occurs when there is a lack of funds available in the credit market, making it difficult for borrowers to ... Read Answer >>
  6. What are some ways of financing an acquisition?

    Learn about how business acquisitions are financed, from using private equity funds to receiving huge acquisition loans from ... Read Answer >>
Hot Definitions
  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center