In-House Financing

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Definition of 'In-House Financing'

In-house financing is a type of financing that is provided by the seller of a product or service. This type of financing is often used when the seller does not want to use a third-party lender, such as a bank or credit union. In-house financing can be beneficial for both the seller and the buyer. For the seller, it can help to increase sales by making it easier for buyers to purchase the product or service. For the buyer, it can help to save money on interest rates and fees.

There are a few different ways that in-house financing can be structured. One common way is for the seller to offer a loan to the buyer. The seller will set the terms of the loan, such as the interest rate, the repayment period, and any fees. The buyer will then make payments to the seller over time. Another way that in-house financing can be structured is for the seller to offer a lease-to-own agreement. Under a lease-to-own agreement, the buyer will lease the product or service from the seller for a period of time. At the end of the lease period, the buyer has the option to purchase the product or service for a specified price.

In-house financing can be a good option for both sellers and buyers. However, it is important to understand the terms of the financing before entering into an agreement.

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