Time-Sale Financing

AAA

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.

INVESTOPEDIA EXPLAINS '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. Conditional Sales Floater

    A type of insurance that protects a seller of property that is ...
  2. Dealer Financing

    Loans that are originated by a retailer to its customers and ...
  3. Debtor-In-Possession Financing ...

    Financing arranged by a company while under the Chapter 11 bankruptcy ...
  4. Vendor Financing

    The lending of money by a company to one of its customers so ...
  5. Financing

    The act of providing funds for business activities, making purchases ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Will Corporate Debt Drag Your Stock ...
    Investing Basics

    Will Corporate Debt Drag Your Stock ...

  2. The Importance Of Corporate Transparency
    Investing Basics

    The Importance Of Corporate Transparency

  3. The Essentials Of Corporate Cash Flow ...
    Retirement

    The Essentials Of Corporate Cash Flow ...

  4. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center