k_c_t - Kenya Credit Traders

When in the market for high value assets, there is no doubt that one will be eager to learn the financing options available to them. In some cases, one might have enough cash to carry out a cash purchase. However, there are instances when one doesn’t have all the cash to spend on a given asset they require for their business or home.

In some instances, a homeowner or a business owner turns to a lending institution to seek cash to fund the purchase. In the case of household items, one can turn to digital lenders to obtain cash and purchase a particular asset. However, the high interest rates charged on the short-term loans only work to increase the total cost of the asset.

Hire Purchase Financing Options With KCT

Hire purchase is quickly becoming a suitable way to pay for assets in modern times. With hire purchase, one acquires an item at just a fraction of the total cost. This initial payment is referred to as a down payment. After one makes the down payment, a hire purchase agreement comes into effect. They hirer has a duty to pay daily, weekly, or monthly installments until they pay the total cost of the item as well as the interest.

One of the best reasons to opt for hire purchase financing is that one is able to acquire assets they need immediately, even when they do not have all the cash to purchase the assets outright. If you are looking for kitchen appliances, you just require paying at least 10% as a down payment. The items will be availed to you by the dealer and you are allowed to use them. However, one can only become the owner after making all the payments.

It is also worth considering hire purchasing financing options with KCT, considering that this is an affordable way to purchase items. In the case of term loans, the interest rates are usually high. The interest rates are also subject to changes depending on the changes by the Central Bank of Kenya. In the case of hire purchase financing, interest rates are fixed. This means that the installments are fixed, and one can thus budget for their income appropriately.

Find more educative content about hire purchase on our blog page. Follow KCT on Facebook for incredible hire purchase deals.

Hire purchase has become one of the best payment methods for electronics in Kenya. More people are opting to find latest designs, models and brands of electronics and pay using the lipa pole pole method. The many benefits that one is set to enjoy by opting to utilize hire purchase motivate more customers to choose it in modern times.

Hire Purchase Agreements

A hire purchase agreement is a sales contract between the dealer and the hire. The primary aim of a hire purchase agreement is to protect the rights of both parties. Before acquiring any electronics from KCT, one needs to sign the agreement. It is imperative to invest time and effort reading through the agreement and ensure that you are making the right decision.

Most people have questions about electronics hire purchase. Here we take a look on frequently asked questions by customers.

Electronics Hire Purchase FAQs

· Is hire purchase a good idea?

Hire purchase is one of the best ways to purchase electronics. When you do not have the cash to purchase a smart TV or a home theater, hire purchase allows you to spread the cost. Hire purchase comes with fixed interest rates and installments, and this allows you to budget appropriately.

· Why is the total cost of electronics higher than cash purchases?

In hire purchase, one hires the assets to use them before they can complete payments and transfer ownership. There is interest charged on the monthly installments, and this leads to an increase in the total cost. However, the increase in the cost doesn’t outdo the many benefits of hire purchase.

· Can a buyer return the goods to the dealer?

The hire purchaser rights are outlined in the hire purchase agreement. One such right is the right to terminate the hire purchase agreement. You are allowed to return the goods to the dealer and stop making payments. However, you are not refunded any installments after returning them. The already paid installments are considered leasing or hiring fees.

· Can the buyer transfer a hire purchase agreement?

It is possible to transfer the hire purchase agreement. This is a process where the hire sells the goods to someone else. The new buyer takes over the payment of the installments to the dealer. However, the original hire will need approval from the hire purchase dealer before processing the transfer.

Learn more about hire purchase here. Follow Kenya Credit Traders on Facebook.

Adding electronics to your home is one of the best decisions you can make. TVs, subwoofers, home theatres and other electronics can make your living space livelier when you add them to your living space. These electronics also make work easier in our living spaces.

While electronics are a crucial addition to your living space, at times their cost can be prohibitive. Quality TVs, such as android and smart TVs, can be expensive and out of reach especially if you intend to purchase them outright.

Payment Options for Electronics

When purchasing electronics, one will be eager to learn the payment options available to them. In Kenya, most sellers only take cash payments for electronics. With cash sales, one needs to pay the full cost of the items they intend to purchase.

In recent times, hire purchase has emerged as one of the best ways to pay for electronics in Kenya. Dealers accepting hire purchase payments mainly brand it lipa mdogo mdogo or lipa pole pole. Hire purchase involves providing a fraction of the total cost to the dealer as a down payment. When one makes the down payment, they acquire the assets for their use. The remaining balance is cleared in the form of installments.

In some instances, people turn to short term loans to finance electronics purchase. In modern times, one can access loans through digital lending platforms. After acquiring the loan, one makes a cash purchase for the electronics, and they keep repaying the loan.

Hire Purchase comparison with Other Payment Options

Hire purchase vs cash purchase

Hire purchase has several benefits in comparison to cash purchase. With hire purchase, one has the chance to spread cost. You will make payment within fixed periods, and this allows you to budget for your cash.

One might miss out on electronics which cost a higher amount if they opt for cash purchase. On the other hand, hire purchase makes it possible to acquire such items, considering that you only pay a fraction of the cost and clear the balance over time.

When compared to cash purchase, the total cost in hire purchase is higher. This is due to interest charged on the installments.

Hire purchase vs digital loans

While these two payment options allow you to pay for an asset over a long duration and thus spread the cost, the main difference is the interest rates charged. Interest rates are fixed in hire purchase, thus allowing you to budget for the payments with ease. With digital loans, the interest rates change depending on central bank rates. This can increase the total cost of the asset.

Read more about hire purchase here. Follow Kenya Credit Traders on Facebook.

Benefits of Hire Purchase on Electronics with KCT: Why it’s a Smart Choice for Tech Lovers

We require electronics in our day-to-day activities. Electronics have become a part of our lives since they enhance quality of life and make our work easier. Almost every home or office has a TV allowing them to get information in a timely manner. We also require computers for our data management, running online marketing campaigns and processing documents in our offices. It is almost impossible to stay without electronics in modern times.

Hire Purchase Agreements for Electronics

With the many benefits that electronics offer to us, one wants to know their choices when in market to spend on them. You might have moved to a new office and you opt to spend on a smart TV to improve the working environment. As a tech lover, you might be looking to upgrade from a subwoofer to a home theater to make your living space more lively. Regardless of the electronics one wants to purchase, cost and payment options is always part of the vital considerations.

Hire purchase agreements are designed to allow one to purchase items that they require even when they do not have all the cash. At Kenya Credit Traders, you can acquire your dream electronics with just 10% of the total cost. One has the chance to clear the balance in the form of daily, weekly or even monthly payments.

Benefits Of Hire Purchase on Electronics

The number one benefit of purchasing electronics on hire purchase terms is the chance to spread the cost. By choosing hire purchase, one gets the chance to spread the cost over a long duration considering that you pay the bigger percentage of the total cost in the form of installments. This not only gives you control over your cash flow, but it also allows you to budget appropriately.

Another benefit of hire purchase on electronics is that you acquire electronics immediately. Tech lovers looking to acquire latest models, brands or designs have a chance to acquire them even when they do not have all the cash. When one makes the down payment, they are allowed to acquire the assets, although the ownership changes hands after one pays the last installment. Hire purchase offers tech lovers the easiest way to upgrade and acquire newest electronics available on the market.

Fixed interest rates are also part of the benefits of hire purchase. You do not have to worry about additional costs after signing the hire purchase agreement.

Find the best hire purchase deals by following Kenya Credit Traders on Facebook.

It is no secret that Kenyans are looking for convenient ways of buying items for their homes and offices. However, most shoppers find a challenge in paying for the items they so desperately need. Some do not even know what hire purchase in Kenya entails. If you are one of them, it is time to open your eyes and see the huge convenience that is staring at you. Read on to understand what hire purchase covers and what it doesn’t. You will also, separate common myths from realities and then benefit from the advantages.

Quick Introduction
Hire purchase in Kenya can loosely be defined as a system of buying goods and products from dealers and traders through regular instalments. In most cases, those instalments are equal and are paid monthly. If you are buying a television set, for example, you spread the purchase over several months instead of paying the whole price upfront. If it goes for Ksh. 50,000 for example, you could enter into a hire purchase agreement and pay five instalments of Ksh.10,000 each.

What Items can you Buy?
You can find numerous traders who offer hire purchase as a payment option. However, it is best to shop with a trusted trader such as Kenya Credit Traders Limited. Avoid the temptation of going for offers that look too good to be true. It is important for you as a consumer to note that you can purchase just any item through this system. The following are examples of popular items for hire purchase in Kenya that you can purchase at Kenya Credit Traders Limited.

Home Entertainment
Household Furniture
Transport i.e Bicycles
Solar Products
Building Materials
Dairy & Agricultural Equipment
Light Commercial Equipment
Kitchen improvement products

Common Terms and Conditions

The terms and conditions of hire purchase in Kenya vary from one trader to another. It is, therefore, prudent to understand the terms at each trader. The last thing you want is to be fleeced of your hard-earned cash in the form of hidden costs and charges.All traders that offer hire purchase in Kenya will require you to make a down payment before you take the item home. This amount varies from one trader to another. Some request for a 50% payment, but others are more flexible. After that, read and sign an agreement that binds both you and the trader, and then take the item away. Usually, the ownership of the item is not expressly transferred to you until you pay all due instalments.

Tips on Hire Purchase

As the item still belongs to the trader during the payment duration, ensure you do not deface it. Tampering with the operation, look or functioning of the item voids the hire purchase agreement.Note that the overall price of the item in the hire purchase agreement is usually a bit higher than the marked price. The extra cost is the trader’s profit. Regardless of this, hire purchase in Kenya remains as one of the most preferred ways of shopping. Head over to Kenya Credit Traders Limited and go home with an item you desperately need.

There are many hire purchase companies and traders in Kenya. However, few are as credible and as convenient as Kenya Credit Traders. If you want to buy an electronic product or an item of furniture, you have come to the right place. It is important to understand the pros and cons before entering into any contract. Read on to know common features and terms of hire purchase in Kenya. After comprehending the technical details, you will have no reason for failing to own life’s best possessions.

1. Possession
Possession refers to the rightful owner of the item being purchased. Hire purchase facilitates you to use the item even before paying its entire price. However, the product belongs to Kenya Credit Traders even when it is in your house. Make the final payment and the company will transfer ownership to you immediately.

2. Installments

It is usually the trader’s discretion to determine the amount and duration of instalments.However, traders such as Kenya Credit Traders are flexible and can listen to your needs. Talk to a customer representative today and have the contract tailored to suit your interests. If the duration of hire purchase is long, the instalments will be smaller. The opposite is true for shorter durations.

3. Down payment

Just as the term suggests, a down payment is an amount of money that a buyer pays at the beginning of the hire purchase agreement. For example, Kenya Credit Traders can request you to pay Ksh. 50,000 for a machine that costs Ksh. 150,000. You will then spread the Ksh. 100,000 over several months depending on your needs and source of income.

4. Constituents of hire purchase instalments

Note that each instalment that you pay for the item consists of a finance charge (otherwise referred to as interest) and a capital payment. That means you will pay a higher overall cost of the item as compared to someone paying the entire marked price of the same item at the same shop.

5. Ownership

You do not expressly own the products just because you have paid a down payment to Kenya Credit Traders. Instead, the ownership of items or goods will be passed to you (also referred to as a hire purchaser) when you pay the last instalment. Some agreements contain additional features especially for high-end products such as heavy machinery.

6. Re-possession

You are encouraged to honour the provisions of the hire purchase agreement. For example, pay your instalments promptly. Failure to pay up or a deliberate delay in payment may void the whole contract.Defaulting payment can lead to the hire vendor exercising his right to take the goods back without making any compensation. You will have little if any grounds to mitigate and obtain ownership of the item again.

Conclusion

As you can see, the provision of hire purchase is not as strict as most people think. What are you waiting for? Visit any Kenya Credit Traders shop near you and start the process of owning your most prized possessions.

Are you looking for the best hire purchase company or trader in Kenya? Search no more, because Kenya Credit Traders Limited has already made your life easy. Read on to understand how to settle for the best vendor.It is true that some hire purchase traders in Kenya have fleeced innocent shoppers. For this reason, we educate you on the process of finding the best hire-purchase trader. When you have found one, you know that your money will go into a fruitful venture.

Research Widely

One of the biggest mistakes that you can make with hire purchase traders is a failure to research. You are highly encouraged to do a thorough homework. The last thing you want is to purchase faulty goods or highly-priced items from a blacklisted vendor.Ask your friends, family members and colleagues for the best hire-purchase
trader in Kenya. If the name Kenya Credit Traders Limited pops up several times, you know that it is a trusted company. Go ahead and do business with them.

Visit the Vendor’s Website

From the comfort of your home or office, browse different items listed on the vendor’s website or social media platforms. However, do not rely on this as the only way to collect information. Note that some traders take pictures of items and then edit them in Photoshop to make the item look newer and glossier hence making it pricier.
People who have used hire purchase in Kenya will tell you its benefits and drawbacks if any.More importantly, visiting the actual brick and mortar shop allows you to have the feel of the item before you take it away.

Go to the Actual Shop

Here is another mistake that people commonly make when buying from a hire purchaser. They rely on the information posted on websites and social media pages too much. Instead, visit the actual shop and chat with the customer representative. Ask as many questions as possible. Do not be in a hurry to buy from the first shop that you visit. Leave your contact details if the vendor asks and head to another shop. If you must, write down the various prices of the goods sold at various shops and then compare them. Be sure to note any varying specifications or features in different items.

Inspect the Ownership and Registration

You will have nobody to blame if the vendor fails to observe the stipulations of your hire purchase agreement. To avoid doing business with conmen, inspect the business licences as well as registration documents. When you visit any shop belonging to Kenya Credit Traders Limited, you will have access to all regulatory permits needed. That is how you know your purchase agreement is in safe hands. Ensure that the company is mandated by the relevant authority to transact hire purchase business.

Warranty and Insurance

Is the product you are buying covered by a warranty? Just like any other mode of payment, hire purchase should provide a generous yet comprehensive guarantee and insurance for items bought. To make the most use of hire purchase options, visit Kenya Credit Traders Limited today.

Most people looking for hire purchase options do not really know the provisions of such agreements. They either make mistakes or fail to capitalise on some very important benefits. Perhaps the most common arrangements are check-off arrangement and straight hire purchase.While both systems have their own advantages and benefits, this article focuses on a check-off system. Read on to understand the benefits and then take advantage of them today. An educated shopper is an intelligent buyer.

Introduction to Check-off Arrangement

Just as the name suggests, this is a hire purchase option that has your paycheck linked to it. In simple terms, installments for the bought item are deducted from your salary. All you need to do is to discuss with your employer and vendor and make a prudent decision. For example, know exactly how much money will be deducted from your salary per month.Traders are known to be mischievous and you do not want to fall into their trap. Once you provide them with a payslip, your identification card and a guarantor, you are ready to purchase.

Affordability and Convenience

A check-off arrangement is perhaps one of the most convenient ways of paying for hire purchase items. As long as you are salaried or you have a stable source of income, you qualify for this arrangement.You will not have to physically go to the shop to pay installment. Instead, your employer or bank will channel the funds to the vendor’s account conveniently. Trusted vendors such as Kenya Credit Traders Limited can facilitate statements so that you know the status of your payment.

Gives Peace of Mind

The fact that you have a salary at the end of each month is great. In addition, buying items straight from your salary offers some peace of mind. In fact, you will work hard at work knowing that loss of employment will mean loss of the goods or items bought under hire purchase.

You have a Guarantor

A guarantor is someone or some organisation that underwrites your ability to pay for the goods needed. These are usually people close to you such as family members, work colleagues and employers. Knowing that you have someone to go to when finances are hard to come by is a welcome relief. However, do not misuse this sense of security to your advantage and at the expense of the guarantor. If you default payments, both of you will lose assets anyway.

Flexible Purchase and Delivery

This advantage does not only apply to a check-off arrangement, but also to other hire purchase options. Anyway we decided to include it here because of the weight that it carries. In addition, leading franchise such as Kenya Credit Traders Limited allows you to pay for an item at one shop and then pick it up at another shop. Having understood the benefits and advantages of the check-off system, is it not the time to start buying items that you need?

KCT Bomet Branch is the newest addition to our extensive branch network. KCT Bomet opened its doors to the public on the 2^nd of October 2017 targeting new and existing customers around Bomet town.

All Categories