Advantages - Benefit of Installment Sales

There are various advantages in installment sale transaction for both the buyer and the seller.In developing countries where people cannot afford asset by making a lump sum payment, this mode of asset acquisition is awesome. Some of them are:

Some of the benefits - advantages are as follows:

  1. Seller can enjoy high gross profit margin because he or she is providing the asset at a very nominal down payment,
  2. Buyer can acquire the possession of the asset by making just nominal down payment which usually ranges from 10 % to 30 %.
  3. Seller keeps the original documents of the asset, that is why the risk of theft and fraud are reduced.
  4. In developing countries where the inflation rate is increasing and people are losing their purchasing power, installment sale is an important tool to acquire the asset.