Pre-Agreement Proposal – Instalment Sale Agreement
A lender that finances goods (such as computers, vehicles, equipment, office furniture etc) for people on an instalment sale basis may consider using this Pre-Agreement Proposal together with their own instalment sale agreement conditions. This Pre-Proposal Quotation has been drafted with the National Credit Act in mind.
For an Instalment Sale Agreement
(in terms of the NCA)
Summary A lender that finances goods (such as computers, vehicles, equipment, office furniture etc) for people on an instalment sale basis may consider using this Pre-Agreement Proposal together with their own instalment sale agreement conditions. This Pre-Proposal Quotation has been drafted with the National Credit Act in mind.
Why would I need a Pre-Agreement Proposal? The National Credit Act requires a lender to provide a borrower with a pre-agreement proposal before the credit agreement is entered into. This pre-agreement proposal is effectively a quotation that sets out the amount of the credit facility and the terms of the borrower’s repayment. This Pre-Agreement Quotation provides for a loan that is repaid in instalments over a specific period, with regular payment obligations.
Before signing this document, the financier is advised to conduct a comprehensive financial and credit check on the borrower, and get the borrower to complete a separate application form for a credit facility.
Please note that this document does not include the Instalment Sale Agreement. We do also offer an Instalment Sale Agreement bundled with the Pre-Agreement Proposal.
What does the Pre-Agreement Proposal say? The Pre-Agreement Proposal covers the following issues: Description of goods; Finance details; Finance term; Instalments.
How long is the Pre-Agreement Proposal? The Pre-Agreement Proposal can be printed onto three A4 pages.
What do you need to do to use the Pre-Agreement Proposal?
- Read the template document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details in the Quotation.
- Ensure that the document is signed by both the financier and the borrower.
- Ensure that you also have an Instalment Sale Agreement.
This Pre-Agreement Quotation is intended for use in cases where the National Credit Act applies. While it has been drafted in accordance with our interpretation of the legislation, we recommend that you obtain specialist advice before using any document required by the NCA. Agreements Online will not be liable for any damages you may suffer due to your non-compliance with any regulatory requirements.
Also known as: Pre-Agreement Quotation; Quotation/Proposal in terms of NCA
Also viewed: Financial Lease Agreement
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