ABSTRACT
We are here dealing with the situation where a dealer has an arrangement with a bank or finance company (call it a finance house), whereby the latter is in principle prepared to finance the dealer’s customers so that they can acquire the dealer’s goods. It may be that the finance house makes a loan agreement with the customer, thereby lending money to the customer, enabling the customer to buy the goods. Equally, it could be that the finance house buys the goods from the dealer and then contracts with the customer to supply those same goods to the customer on credit or hire terms. The following table indicates the possible combinations, where FH=finance house.
