The Different Types Of Hire Purchase

When in the market for expensive assets, one of the best options you can make is choosing a hire purchase payment plan. There are many benefits that one enjoys when they opt for hire purchase.

One such benefit is that you will acquire the asset at just a fraction of the total cost. You are allowed to utilize it before you can make the full payment. At the end of the repayments, one will become the owner of the asset, unlike in the case of a lease agreement.

Forms Of Hire Purchase Agreements

There are two main types of hire purchase payment plans. The main difference occurs in how financing is obtained.

• In the first type, the assets are purchased from the dealer by the financier. Afterward, the financier will negotiate with the customer to come up with the agreement. After the agreement, the customer is allowed to utilize the asset. The financier thus becomes the owner of the items purchased until the hire purchaser pays the last installment. The dealer gets the money from the financier. The financing agent in turn recovers the cost of the asset from the customer. In the case the buyer defaults on payment, the financier has the right to recover the asset.
• In the second form of hire purchase, it is the customer that approaches the dealer for the assets they intend to purchase. They will enter into an agreement with the seller. After one pays the deposit, they have the chance to utilize the items purchased. However, transfer of ownership is completed after payment of the last installment. The vendor has the right to seize the assets or items in the case of non-payment.

At Kenya Credit Traders Limited, we have valuable assets in the form of furniture, electronics, kitchenware, and even appliances. Visit our store to place your order.

A hire purchase agreement or contract is a credit agreement. The buyer hires items such as dining sets, double door refrigerators, and mobile phones, among others from credit dealers such as Kenya Credit Traders.

In most cases, such products might be expensive for one to pay upfront. Hire purchase thus offers them the chance to acquire the products by just paying a fraction of the total cost as a down payment. Afterward, one clears the balance in periodic installments. This can be in the form of daily, weekly, or monthly payments. Hire purchase, or Lipa mdogo mdogo, is slowly becoming a popular payment method.

Contents of the hire purchase agreements

1. Most of the hire purchase contracts will have terms and definitions as used in the contract. This helps you understand the contents of the agreement before signing.
2. The duties of both the seller and buyer are also specified in the hire purchase agreements. This includes the disclosure of crucial information by both parties.
3. The rights of the seller and the buyer are also part of the hire purchase agreement. Both parties have their rights, and it is essential to understand them before you sign any hire purchase agreement.
4. Payments and penalties are also part of the hire purchase agreement. The costs of the products as well as the interest charged ought to be part of the contract. One also learns penalties they incur as a result of breaching the contracts. This will include late payments or lack of payments.
5. The exchange of notices information is included in the contract. Both parties will need to issue notices whenever they need to terminate the contract. It is also possible to issue a notice when one requires amending the contract. The mode of exchanging the notices is determined in the agreement.

Benefits of the hire purchase agreement

The primary purpose of the hire purchase agreements is to protect both parties. The buyer is protected from acquiring defective products. They are also protected from abrupt changes in the prices of the products. The seller is protected from losing their products. They are also protected from a lack of payments by the hirer. The steps that one can take whenever there is a breach of the agreement are specified in the hire purchase act.

Learn more about hire purchases by visiting our blog page. Also, follow Kenya Credit Traders on Facebook for great deals.

Adding a Smart TV to Your Living Room

Adding a TCL smart TV to your home is one of the best decisions you will make. Our mind feed on information and TVs serves this purpose. We get access to the latest happenings in our country through news updates.

Apart from access to news updates, choosing to invest smart TV in your home opens the door to a whole entertainment experience. They combine all the benefits that came with free-to-air TV sets, pay TV, and the unlimited potential of the internet.

Streaming content is also part of the primary benefits of smart TVs. You will have access to numerous streaming services and apps such as YouTube, and Netflix, among others, changing your whole TV experience.

Reasons to purchase TCL smart TVs

Affordability

When in the market for a TV, there is no doubt the price is always a primary area of concern. One of the best reasons why TCL takes the market by storm is its affordability. By opting to purchase a TCL smart TV, you will enjoy high-quality displays. When compared to other TV brands on the market such as LG, Samsung, and Sony, TCL is the most affordable option.

TCL Smart TVs come in a variety of sizes. Whether you want a 32” HD smart TV or the 75” 8K QLED TV, the TCL brand is always the best option.

Kenya Credit Traders Limited allows you to purchase Smart TVs on hire purchase. You immediately get possession after paying the deposit.

Quality

If you are looking for a quality TV that adds life to your living room, consider buying the TCL smart TV. These smart TVs come with improved visual quality and acuity, as well as powerful processors, guaranteeing nothing but the most amazing images. The best part about TCL as a brand is that they prioritize audio quality. Some of the models will come with an integrated soundbar.

TCL smart TVs are highly rated by customers. They get the best reviews compared to other TV models.

A hire purchase agreement is a legally binding contract between the buyer and the seller. Its primary purpose is to protect the seller as well as the buyer from exploitation. It is vital for both parties to take their time and understand the terms and conditions in the hire purchase agreements before signing. When you take your time to understand the details in the agreement, it is possible to find out any clauses allowing room for exploitation. The buyer also understands whether hire purchase is the right payment option to utilize.

Things to watch out for before signing a hire purchase agreement

• It is essential to keep in mind that a hire purchase will cost more than the cash price for any given product. This is due to the interest as well as administrative costs that one incurs.
• Always take your time to go through the hire purchase agreement. You should not sign any hire purchase agreement if you are not sure. Ask for a copy, take it home, and read. It is also advisable to seek advice. You can also compare the deal with other dealers.
• When there is information missing on the contract, one might not have to pay all the cost of the credit. The law requires the seller to provide all the necessary information to the hirer.
• Until you have made the last payment, you are not the owner of the products. This means that one cannot sell the products or even use them as security when borrowing. If you do, it will be a breach of the contract, and this can lead to the seller repossessing the goods.

Steps to take when cheated under a hire purchase agreement

The first step when one feels uncomfortable about the hire purchase agreement is to seek an audience with the seller. If the dispute can be settled between both parties, there will be no need for legal action.

One of the best ways to settle disputes that might arise from hire purchase agreements is to seek the services of a qualified lawyer. The lawyers will help you understand your rights. They can also help you draft a consumer complaint. Even in a case where one chooses to file a suit in a court of law, there is an arbitration clause. If arbitration doesn’t work for both parties, the case may be argued in a court of law.

Learn about hire purchase agreements at our website. We have numerous products available on hire purchase terms. Also follow us on Facebook, Kenya Credit Traders.

With hire purchase becoming a popular payment option in Kenya, one might be eager to learn about the hire purchase agreements. In the case of cash purchases, one will only take a receipt home and assume ownership of the product immediately after making the purchase. However, in the case of hire purchase, you are hiring a product to use until you make all the payments. This makes a hire purchase contract necessary to govern the owner of the product as well as the buyer.

Clauses under hire purchase agreements

1.      Nature of the agreement

This is the first clause in any hire purchase contract, and it states the purpose of the agreement. If you are purchasing household items such as TVs, microwaves, or dinner sets, the nature of the agreement will be for personal use. On the other hand, when purchasing items to utilize in your business such as commercial blenders, refrigerators, and other appliances, the nature of the agreement will be for commercial purposes.

It is in this clause that the dates for commencement and termination of the agreement are stated. Payment details are also indicated in this clause. It states how to make payments, when to pay, the name, as well as the address of the owner.

2.      Delivery of goods

It is the duty of the owner to deliver the products to the buyer in the case of hire purchase agreements. This clause defines the date, time, and place of delivery.

3.      Risk clause

This is the clause that defines any damages to the products, and who will bear the costs. If the products are damaged or defective before delivery, the owner bears the cost. On the other hand, after delivery, the hirer owes full responsibility for the damages.

4.      An explanation of the rights of both parties

This clause will explain the rights of the owner, including the rights to repossess products and termination of the contracts. One can understand circumstances under which the owner can repossess the goods.

The rights of the buyers will also be explained under this clause. This includes the right to get the necessary information, and the right to termination.

5.      Charges and total cost of the hire purchase agreement

In this part of the agreement, one learns the costs involved when purchasing a given product. This includes the down payment, interest, monthly installments, booking fees, maintenance, insurance, and other relevant charges. The owner has an obligation to disclose the fees to the buyer.

Visit our website for a variety of essential products available for hire purchase. Also find out the latest deals by following us on Facebook, Kenya Credit Traders.

Commercial blenders are not created equal. You will have a broad variety of blenders to choose from when in the market to find one. Having so many options can complicate the process of finding the best one. Here are some useful tips to guide you and help you make the right decisions.

Types of blenders

Before one ventures into the market to purchase blenders, there is a need to define their use. Identifying what you will be blending makes the process of finding the ideal blender easier. Commercial blenders are usually categorized into two main types; bar blenders and food blenders.

Bar blenders are the ideal option if you are looking to make smoothies or blended cocktails. Most of these blenders come with high enough horsepower for your blending and a simple on/off switch.

Food blenders, on the other hand, handle more functions, unlike bar blenders. The food blenders can emulsify ingredients for dressings or sauce, chop fresh vegetables for salsa and even grind grains into flour.

Types of blender containers

The blender container is a vital part of the appliance, and it can be made of one of these three materials: glass, polycarbonate, and stainless steel. Stainless steel containers are the most durable, considering that they don’t crack with ease. They can also handle a wide range of temperatures. Polycarbonate blender containers are not only lightweight, but they are also virtually indestructible material. The fact that they are also transparent makes them the most popular option in the market.

Blender power

The reason you are purchasing a blender allows you to find the ideal power. For customers looking for large foodservice operations, you need blenders with higher horsepower then in the case of a person buying a blender to use at home.

Capacity

The capacity of the commercial blenders is arguably one of the overlooked factors. The size of the container determines the capacity of drinks that you can make in a single batch. Finding the right size will help minimize waste and even save your time.

At Kenya Credit Traders Limited, we have a variety of blender brands. Visit our website or follow us on Facebook, Kenya Credit Traders, for the best offers.

Credit trading involves a business providing a line of credit to its customers when purchasing goods or seeking services. While credit buying is considered less formal when compared to bank loans, it also comes with terms and conditions that the buyer agrees to follow. This includes penalties in the case of late payments as well as interest. This arrangement is mutually beneficial to both the buyer and the seller. While the businesses use this payment option to drive sales, customers on the other hand have access to acquire different assets even when they do not have the cash at hand. Here are some reasons to choose credit trading.

It helps you to get up and running

Purchasing items on credit can be useful especially when you are looking for assets but do not have the cash to pay upfront. If you are running a new business and you can’t secure loans to fund the purchase of assets, you can opt for credit buying to acquire them through credit buying. If you relocated or recently purchased a home and you do not have all the cash to purchase household furniture, credit buying will be the best bet.

Easy to arrange

Unlike in the case of bank loans or other financing options, credit buying is easy to arrange. When one has a good credit history and documents to prove that they are able to make regular payments, credit trading is easy to arrange and maintain. The formal arrangements and paperwork are few and easy to handle and complete.

Helps fuel business growth

Businesses that opt to utilize trade credit can also expect growth. Acquiring assets even when you do not have all the cash is equivalent to accessing working capital at no cost. You will benefit from the asset while looking for the money to pay for it.

At Kenya Credit Traders Limited, we have a wide variety of products you can purchase for your home or business. We accept hire purchases as a payment method. Follow us on Facebook, Kenya Credit Traders to learn the latest deals and offers.

Purchasing a semi-automatic twin tub washing machine will definitely work to enhance your laundry experience. Investing in one will certainly work to save the time you spend on laundry. You will not lack options when in the market for a washing machine. However, various models are created differently, and they will produce different experiences when you use them.

Top Considerations When Choosing A Washing Machine

Before spending on a washing machine, there is a need to check the following aspects.

1.      Size and capacity

Before you choose to add any appliance to your home, it is essential to check whether there is sufficient space to store it. The size of the washing machine is thus part of the basic considerations. One needs to make sure that the machine can fit in the house comfortably.

The load capacity is considered the most important aspect when choosing a washing machine. Load capacity is measured in kilograms and correlated with the number of family members. One needs to ensure that the washing machine can comfortably clean the clothes in a single wash cycle.

2.      Budget and payment options

The cost of the washing machines is also part of the primary considerations. One is likely to have a budget in place before getting into the market. Choosing cheap washing might mean that you will compromise on the quality or features. However, you do not need to overpay to acquire a washing machine. Always ensure that you get value for your money when purchasing a washing machine.

Some dealers will only accept cash payments for washing machines. However, recent times have seen dealers, such as Kenya Credit Traders Limited, accept hire purchase payments in Kenya, commonly known as Lipa Mdogo Mdogo. You only need to pay a deposit, which is a fraction of the total cost of the washing machine. You can clear the balance later, depending on the contract, after acquiring the washing machine.

3.      Fully-automatic vs semi-automatic twin tub washing machines

Fully-automatic washing machines come with appealing features and technology. One just requires placing the clothes and pressing the start button. The machine will handle the laundry process without any human intervention.

On the other hand, a semi-automatic twin tub washing machine requires some intervention. You need to add water and detergent to the washing tub. After completing the washing cycle, the machine will make a buzzing sound. This alerts you to take out all the clothes to the dryer section. The best part about these models is that they come at affordable prices and also give you more control over the washing process.

Follow us on Facebook, Kenya Credit Traders, for the latest offers and new product updates.

Hire purchase, as well as term loans, are options when one is looking for financing. Whether you are out to buy assets for your home or business, you will be keen to learn about available financing options.

Assets such as Smart and digital TVs, home furniture, smartphones, or a fridge might prove costly. Hire purchase offers you the chance to acquire these items at a fraction of the total cost. The balance is usually paid in monthly installments.

On the other hand, you can obtain a loan from an accredited financial institution such as a Sacco, a bank, or even an online or mobile service lenders such as M-Shwari. In some cases, you will need to provide collateral for the loan. After obtaining the loan, you can use the cash to purchase the item you desire.

Differences between Hire Purchase and term loans

Ownership

When you choose hire purchase to finance assets for your home or business, you will obtain full ownership of the items after paying the last installment. This means that the buyer can resell the items if they run into financial problems. On the other hand, when you obtain a loan and purchase the items in cash, you get full ownership of the items. You will thus have the ability to resell the items whenever the need arises.

While hire purchase doesn’t give full ownership of the items immediately after purchase, it still has some benefits. You will acquire the items immediately and have a chance to use them before making the last payment. If you are looking for a microwave, you have a chance to enjoy warm food while you clear the balance.

The total cost of the asset

The cost of assets to the buyer when they choose to hire purchase is the normal cash price plus the HP interest. The interest charged is usually favorable considering the duration that one is allowed before fully paying for the asset.

On the other hand, loans can be exploitive due to the high interests charged. In most cases, if you are looking for short-term loans, they do not require collateral. However, the loans come with high-interest rates. This will only make an asset more expensive.

Visit Kenya Credit Traders Limited to learn more about the benefits of Hire purchase. You can also view the latest products on offer on our Facebook Page, Kenya Credit Traders.