Loans & Consignment

Consignment takes place where goods are transferred from the owner (consignor) to an agent (consignee) for the purpose of sale by the consignee on behalf of the consignor. It is important to understand that the relationship of principal (consignor) and agent (consignee) exists and because of this agency relationship, ownership of the goods does not transfer to the consignee.

The consignee as the selling agent is entitled to a commission for selling the goods: expenses may be incurred by both parties: and periodically or on completion of the consignment, settlement is effected between the parties. If any goods remain unsold then it is generally returned to the consignor. The Loans/Consignment facility also allows goods to be dispatched from a Wholesaler to customers on a Loan or Trial Basis. [Read more…]