(Solved): What is the main distinction between a Vendor-Take-Back financing and a Lease-ToOwn financing? a ...

What is the main distinction between a Vendor-Take-Back financing and a Lease-ToOwn financing?

a. The length of the financing arrangement.

b. Rent-to-Own financings require a personal guarantee; Vendor-Take-Backs do not.

c. A Vendor-Take-Back is an unsecured form of financing: Rent-to-Own is secured.

d. Vendor-Take-Back financing generally has a higher rate of interest than Rent-to-Own

e. In a Lease-to-Own, the vendor retains title to the asset until payment is completed, in a Vendor-Take-Back, the purchaser holds title to the asset from the outset of the agreement.