• The gold standard in equipment financing across Canada

Conditional Sales Contract (CSC)

Affiliated Financial Services offers Conditional Sales Contracts, to help you to acquire vehicles, equipment or various types of machinery quickly and easily.

What is a conditional sales contract (CSC)?

A conditional sales contract (CSC) is an agreement whereby the purchase of equipment is conditional on the fulfillment of certain specific conditions. Until these conditions are met, the seller retains ownership of the property.

Once all conditions have been met, ownership is transferred to the buyer. This enables buyers to acquire expensive equipment while staggering payments.

In this way, the conditional sale contract offers the possibility of acquiring equipment while keeping other sources of credit available. Maintenance costs are treated as current expenses, while the purchase of the asset is treated as a depreciable capital expenditure.

This solution greatly facilitates the immediate acquisition of those assets essential to your business, enabling you to realize your projects without delay.

Conditional Sales Contract - CSC
Conditions in a conditional sales contract

Conditions often included in a conditional sales contract:

  1. This is a purchase agreement to be finalized at a later date between buyer and seller.
  2. All taxes are payable at the beginning of the transaction.
  3. The buyer does not acquire full ownership of the property until it has been paid for in full.
  4. The seller retains ownership of the property until final payment has been made.

Advantages of Conditional Sales Contracts

Conditional sales contracts offer a number of advantages for both sellers and buyers. Here are some of the most common advantages of this type of contract:

  • Affordability: Conditional sales contracts enable buyers to acquire expensive equipment without having to pay the full purchase price immediately.
  • Staggered payments: Payments are staggered, which can make budgeting easier for buyers.
  • Immediate use: Although the seller retains ownership until all payments have been made, the buyer can usually use the property from the outset, which can be particularly important for vehicles or professional equipment.
  • Maintenance and warranty: Maintenance costs and warranties can often be included in the contract, offering the buyer additional peace of mind regarding the purchased equipment.

In short, a conditional sales contract enables you to acquire a vehicle, machine or any important piece of equipment while helping you to manage your finances more flexibly, with full ownership of the asset in sight once all the required payments have been made.

Do you have a purchase project with a conditional sales contract?

Affiliated Financial Services is at your disposal to facilitate the process of obtaining your vehicle, machine or equipment with a CSC. By sharing the details of your project with us, we’ll put you in touch with the right professionals, free of charge. Simply fill in our form, and we’ll put you in touch with experts in the field.