Purchase Contracts Two types of credit contracts commonly used to finance equipment purchases

The two most common types of credit contracts are: 1) theconditional sales contract, in which the purchaser does not receivetitle to the equipment until it is fully paid for; and 2) thechattel mortgage contract, in which the equipment becomes theproperty of the purchaser on delivery, but the seller holds amortgage claim against it until the amount specified in thecontract is paid.

Excerpted from Starting a Home-based Business