Deferred Payment Sale

Deferred Payment Sale

This refers to the sale of goods where the buyer pays the seller after the sale together with an agreed upon profit margin, either in one lump or by installment.

Here is how it works:
  • You pick an asset you would like to buy.
  • You then ask the bank for BBA and promise to buy the asset from the bank through a resale at a mark-up price.
  • Bank buys the asset from the owner on cash basis.
  • Ownership of the goods passes to the bank.
  • Bank sells the goods and passes ownership to you at the mark-up price.
  • You pay the bank the mark-up price in installments over a period of time.