Why should you act as the financial institution for the buyer? There are banks and credit unions for just that purpose.[/QUOTE]
If they need a loan to purchase the horse they should get it from the bank, not expect you to play banker.
If they cannot get approved for a loan to purchase the horse, well that’s a red flag for you. If their bank won’t take the risk for them why should you?
If you want to take payments (which seems awful risky doing so for someone you don’t know) spreading them out over a year sounds a bit excessive. A month or three maybe with a contract in place to protect both of you.
I sold a horse on payments once. It wasn’t a disaster but I knew the buyer, knew she wasn’t a flake, was firm about the horse needing to paid off within a short amount of time and didn’t let the horse leave my barn until it was completely paid off. Taking payments from a stranger for a year, hoping and praying they don’t lose their job or horse doesn’t get hurt, or they don’t flake on payments or just up and disappear with the horse? Hell no. I don’t care what their credit score is or if they are willing to put their first born up for collateral. I would not take that risk, not my job.
So many ways this could go wrong for you, and so many horror stories out there from other people who have had exactly the same situation happen.
I think it’s insane for someone to expect a private individual and a stranger at that to finance their purchase over the course of a year. Rather ballsy really. I’d simply tell them no, price is $xxxxx and it must be paid up front before you take possession of the horse. Since they are asking for a whole year to make payments I’m guessing this is a fairly expensive horse…if not that is an even bigger red flag!