If the buyer gets behind on payments, the store can take the furniture back. Under federal and state laws dealing with billing problems, you may be subject to penalties for failing to comply with the required procedures. Typically, you have the customer sign a financing agreement and a UCC Financing Statement. The property in which you have a security interest will be earmarked for your benefit. Obviously, it takes time and requires some paperwork and expense to create a security interest.
Banks routinely obtain a security interest when they lend money to a customer to purchase equipment.
Incidentally, as an alternative to extending credit on larger purchases, one option is to refer the customer to a bank or leasing companyparticularly one with whom you've established a working relationship. These organizations are in business to take credit risks and can absorb losses better than you can. If your bill isn't paid, you can foreclose on your lien. This means the real estate can be sold to pay your bill. Speak to a construction industry trade association or, if necessary, a lawyer about how to do this.