An outline of the terms of sale offered to customers

1. Terms of Sale
Prepared by Sandrea Butcher

2. Cash
• These are immediate
payments with notes,
coins, cheques, debit
card and credit cards.
• They are common for
small items and routine
purchases

3. CREDIT
• Used to purchase high priced or even
luxury items
• Can be used for business to business
sales
• Customer pays an additional amount
called interest charges.

4. Hire Purchase
• Commonly used to purchase
large appliances and furniture
• Similar to credit however the
goods remain the property of
the supplier until the purchase
price has been paid

5. • Purchaser is normally required to
pay a deposit, and then make
equal monthly installments
• Can be used to buy cars as well

6. Discounts
• Trade discounts are offered to
business customers who buy
regularly or in bulk
• For example
– bookstores would give schools
discounts on textbooks
– Hardware stores offer
tradesmen discounts

7. • Cash discounts are offered to
encourage cash sales

8. Layaway
• Shoppers set a high priced item
aside and pay for it over time.
• A deposit must be made.
• They take the item home after it is
paid for in full.
• There is no interest involved, only
layaway fees.

9. Consignment
• This is an arrangement where goods
are transported to a dealer who pays
the supplier (consignor), only for the
merchandise that is sold.

10. • The dealer (consignee), returns
unsold merchandise to the supplier
without obligation.