Legal Brief: Beware of Those Tricky Installment Transactions
November 15, 2021
Security Business Magazine
Types : Bylined Articles
Knowing state-by-state laws is key for selling to customers who want to pay equipment off over time
Your company is growing, and you are now selling security services and equipment to customers in many different states. A senior executive in your company tells you that the company now wants to allow those customers to be able to pay for their equipment over a period of months or years. It is thought that this will increase customer growth as the total price for the equipment and service can be paid over time and, therefore, may be more attractive to a wider group of potential customers.
So far, this all sounds good, as plenty of other businesses do this. Motor vehicle leases, for example, expressly allow for payments over time. So, why can’t this be done in the security industry?
The good news is that it absolutely can be done in the security industry; however, in most states, it cannot be done without:
- Using an agreement securing the payments over time (known as an installment agreement); and
- Complying with state statutes governing such consumer installment agreements.
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