Equine Law Blog

Selling a Horse on Installment Payments: Part 1 - What is an Installment Sale?

Banks do it.  Credit card issuers do it.  Horses can be expensive, and buyers often ask sellers to spread out their payments over months, or even years.  Should you, the horse seller, do it?

Horse sellers, banks, and credit card companies have much in common when they agree to extend financing to someone.  All hope that buyers will make payments faithfully and honor their obligations.

But that is where the similarities end.  Banks and credit card companies protect themselves well, relying on credit checks, financial disclosures, and detailed contracts before they ever agree to extend credit.  Horse sellers, in sharp comparison, often sell their horses merely on a handshake and with only a tiny fraction of the purchase price paid up front – to a total stranger.

The business of extending credit is very risky, and installment payment disputes occur frequently in the horse industry.  Many of these disputes can be avoided when those who act like a bank are more willing to think and act like one, too.  Watch for parts II and III of this series to learn more.

Categories: Sales/Disputes