Scenario 5

A trucking company in business for 10 years purchased a new tractor through a conditional sale contract. Due to the company’s qualifying credit, the business was able to finance the tractor at 100% (no down payment required). The company made equal monthly payments and interest for the next 60 months. At the end of the 60 months, the trucking company owned the equipment outright. Throughout the duration of the contract, this structure enabled the company to gain profits and build equity.