There are plenty of home appliances that we require in our day-to-day activities. You require a refrigerator to keep farm produce fresh before cooking them. A fridge also ensures that you can benefit from cool drinks, especially during hot summers. A hot and room temperature water dispenser also ensures that your family is hydrated at all times. We also need a washing machine to keep our clothes clean at all times. For your family meals, you need a quality gas cooker. All these appliances improve the quality of life when you purchase them for your home.

When To Purchase Household Appliances

There are different instances when a homeowner will be on the market for appliances. One such instance is when you purchase or construct a new home. You do not want to install old appliances in your new home. Finding the latest appliances on the market allows you to benefit from more features, allowing you to get the best out of each appliance.

One can also be in the market for home appliances when they need to improve their home. When you are spending on kitchen renovations, you will want to find the best appliances for the new-look kitchen. A homeowner can also choose to purchase new appliances if the current ones are damaged.

Purchasing Appliances Using a Hire Purchase Agreement

When in the market for household appliances, you will want to find out payment options available to you. One of the options when looking for household appliances is cash purchases. With cash purchases, one has to pay the price of the appliances in full, to acquire them. The major benefit of this option is that one becomes the owner of the appliances immediately after the purchase.

While one might want to purchase appliances in cash, it is not always possible, especially when one is working on a budget. One of the best options you can utilize is hire purchase agreements. A hire purchase agreement is designed to spread the cost of the appliances over several months.

One of the leading reasons to budget with hire purchase when looking for household appliances is the ability to spread the cost. You do not pay for the appliances outright when paying on hire purchase terms. You only require a fraction of the total cost as the down payment. One clears the balance in periodic payments that can be daily, weekly, or even monthly.

Find top-notch appliances you can acquire on hire purchase terms on Kenya Credit Traders website. Also, follow us on Facebook, Kenya Credit Traders, for the latest products.

Home is where we return almost every day after spending a busy day at the workplace. It is the space where one wants to get rid of the tiredness that comes with every day’s hustle. To achieve relaxation, one might want to spend on the best electronics and gadgets.

The electronics and gadgets market is very dynamic. Every day, there are new electronics that come with the aim of improving home entertainment. For your dream movie nights, you can opt to purchase a smart TV. One can also settle for a digital TV if they have a DVD player. To enhance sound quality, you might want to spend on a quality home theatre.

Using Hire Purchase to Purchase Electronics

If you have been to the electronics market, you can tell that the best gadgets do not come at low prices. A quality smart TV will cost you tens of thousands. Even a home theater requires several thousands to acquire. This means that one requires proper financial planning to acquire the electronics.

Most people settle for low-quality electronics since they find the cost of quality gadgets prohibitive. You will need several months to save enough cash to purchase a good smart TV in cash. However, in modern times, you can acquire almost any gadget even when you do not have all the cash in a hire purchase deal.

How A hire purchase agreement works

A hire purchase agreement is a sales agreement that allows you to acquire household electronics and gadgets immediately and make payments later through installments. Dubbed lipa mdogo mdogo or lipa later, hire purchase agreements are beneficial to customers looking for the best home entertainment gadgets.

With hire purchase agreements, one only pays as low as 10% of the total cost of the TV, subwoofer, or DVD player they intend to acquire. After this down payment, you are allowed to take the electronics with you and even use them. One clears the balance in the form of daily, weekly, or monthly payments, depending on the hire purchase agreement. This not only allows you to spread the cost, but it also ensures that you can enjoy the best electronics in the market immediately without having to wait until you make enough savings.

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Supply chain management involves the management of the flow of services or goods in your company. It involves a variety of tasks, but the main aim is to streamline the business’s supply-side activities and ensure that customers get value. Supply chain management also aims at giving a business a competitive advantage in the marketplace. For manufacturers, it involves the flow of goods and services and involves a variety of processes to transform raw materials into final products. One of the key departments and players in supply chain management is the purchasing department.

The Role Of A Purchasing Department

A purchasing department is tasked with procuring goods and services for resale as well as company use. In established companies, the department is headed by a purchasing manager. The role of a purchasing manager finding the best quality of goods and services for the company. Apart from finding the right quality, a purchasing department also aims at reducing costs. This will involve negotiating contracts and evaluating different suppliers to find the right one for the company.

How A Business Can Benefit from Hire Purchase

One of the requirements of a purchase manager is having excellent financial management skills. The purchasing department wants to keep the business operating smoothly and this involves finding the right assets for business use. Investing in quality equipment enhances productivity in your business. However, equipment can be costly, thus the need to evaluate different financing options.

Hire purchase agreements work to help a business acquire assets and equipment without putting pressure on the financial department. If you purchase assets in cash, you will need to pay large amounts upfront. This takes a lot of money out of the business and hurts your cash flow. It also disrupts the supply chain and flow of goods and services, considering that you do not have the cash to make other purchases.

The Basics of Hire Purchase

When looking for assets to use in your company, hire purchase is one of the best financing choices. Hire purchase agreements will see the business pay only a fraction of the cost of the items and clear the balance plus the interest in installments. This helps spread the cost and allows your business to budget appropriately. The interest rates are flat, and this makes it easier to budget for your business. The best part about hire purchase is that a business owns the assets at the end of the hire purchase contract.

Find out more about hire purchase here. Get the best hire purchase deals at Kenya Credit Traders.

Small business owners want to find ways to keep their businesses thriving. While there are many factors that determine the growth of your business, having control over the finances is the biggest task. A majority of businesses fail as a result of a lack of proper financial management. Budgeting, saving, and managing the cash flow are crucial to keeping the business running.

Cash Flow in a Business

Cash flow is the net amount of money that gets in and out of our business. The success of your business is dependent on the ability to create positive cash flow through business operations. This means that the income ought to be bigger than the expenses.

Managing Cash Flow in Your Business

To ensure that you have control over the operations of your business, there is a need to focus on the cash flow. The first step towards achieving control is creating a budget. Budgeting helps a business owner to determine the monthly income and expenses. The budget also entails how much a business will earn or spend in the future.

Another important aspect that helps you manage your cash flow is building savings. It might be tempting to utilize all the income to pay for expenses or grow the business. However, it is advisable to put aside a little bit of the business income to build savings. The savings can be useful in the future when you require paying for some expenses or even investing in an opportunity.

Managing cash flow with Hire Purchase

Leasing and hire purchases are considered one of the best ways to manage cash flow in a business. Leasing involves hiring assets or equipment and making periodic payments to the owner. With leasing, one requires returning the asset to the owner at the end of the agreement.

Hire purchase is almost similar to leasing. When a business requires assets, it can pay a deposit to the seller and make periodic payments. However, unlike leasing, you will retain the asset at the end of the agreement.

While hire purchase can seem expensive for a business when purchasing assets, it has plenty of benefits. The biggest benefit is that it allows you to have control over cash flow. In the case of a cash purchase, you will need a large amount of money to pay for an asset upfront. Paying a lumpsum amount of cash will certainly hurt your cash flow. Hire purchase on the other hand will help you spread the cost of the items over a specific duration. This not only allows for budgeting, but it also means that you can acquire assets and have cash for other expenses.

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When in the market for high-value assets such as cars, homes, electronics, and household furniture, one will want to determine their options. At times, it is almost impossible to purchase such assets in a cash purchase. Paying a big amount of cash to purchase an asset can mean that one exhausts their savings leaving them no cash to spend on other essentials. The high cost can even prove prohibitive. However, financing makes it possible to acquire assets.

Different Financing Options

You will have a variety of options when looking to acquire high-value assets through financing. One of the common choices among buyers is taking a term loan. In most cases, one will need to provide security to obtain a large amount of cash. Another downside of a term loan is that the interest rates are high. The rates can also change depending on policies from the Central Bank. An increase will lead to an increase in the payments done to the lender. Most lending institutions will also check your credit score before approving financing, and this makes obtaining a term loan harder when your credit score is low.

Hire purchase is also part of the financing options when looking to acquire a high-value asset. This is usually a credit agreement between the seller and the buyer, also known as the hirer. One pays the total cost of the assets in the form of installments. During the repayment period, the dealer remains the owner of the assets. The dealer transfers the title after the buyer completes paying the installments.

Hire Purchase and Credit Score

Hire purchase is considered one of the best ways to purchase items, especially for people with poor credit ratings. The reason why hire purchase works for buyers with low credit ratings is the fact that the assets you are purchasing act as security. Failure to repay the assets will see the dealer repossess the goods. The buyer also has the chance to return the items to the dealer if they no longer need them, and they will not need to make any more payments.

There are high purchase dealers that will check your credit ratings before approving the deal. When one makes their repayments in time, the high purchase dealers will also report to the credit bureau, and this improves your credit ratings. On the other hand, failure to make payments can hurt your credit score.

Learn more about hire purchase on our blog page. Visit our Facebook page, Kenya Credit Traders, for the best hire purchase deals.

When looking to purchase a bunk bed for your home, you will want to find out the various options available. Apart from checking the designs, material, quality, and even price, one also wants to determine the payment strategies one can utilize. A good double-decker bed will cost you tens of thousands, and this means that paying in cash can be difficult at times.

Utilizing Hire Purchase

One of the choices when purchasing a bunk bed is a hire purchase agreement. While not every furniture store accepts hire purchase terms, there are dealers in Kenya such as Kenya Credit Traders, that accept hire purchase contracts for furniture.

How Hire Purchase Agreements Work

A hire purchase contract is a credit agreement between the seller and the buyer. This arrangement will see the buyer pay a deposit to the seller, usually as low as 10% of the total value of the furniture pieces they intend to purchase. After the downpayment, one requires paying installments for hiring the double decker bed.

One acquires the double decker bed immediately after paying the downpayment, but the seller remains the owner. As the buyer, you will be hiring the assets and paying monthly installments to the buyer. However, unlike in the case of leasing, at the end of the hire purchase agreement, one becomes the owner of the bed. The buyer only becomes the owner of the assets after making all the payments.

Guide to Hire Purchase Agreements

Before signing a hire purchase agreement, a buyer wants to ensure that they are getting the best deal. Here are some of the features of a hire purchase agreement.

• Payment is done in installments by the buyer over a specified duration.
• As the buyer, you acquire the double-decker bed immediately after paying the deposit.
• The ownership of the bunk bed is only transferred to the hirer after paying all the installments.
• When the buyer defaults payment to the dealer, the seller has a right to repossess the goods. In such a case, one loses the payments they have made to that point.
• Interest is charged on the monthly installments. This makes the high purchase price higher than the cash price.
• Interest rates are usually fixed and unlikely to change during the entire period a buyer is paying the installments.

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A bed is one of the assets we all require to purchase at some point in life. Beds are our favorite resting spot after all the hassles we encounter during the day. Laying in bed helps you find peace of mind and comfort after a busy day. It is thus vital to find a bed that just helps you achieve this goal.

Double Decker Beds

Double decker beds are one of the best options especially when looking for a bed that can accommodate your family. If you have kids, a double decker bed will come with plenty of benefits. Here are some of the benefits:

·         Saves on floor space

The number one reason why one would choose a double decker bed is that they help you save a lot of space. When you have limited capacity in your home, you want to arrange items in a way that they won’t look congested. In the case of double decker beds, the beds are stacked on each other, saving you plenty of space.

·         Maximizes sleep spaces

Having two beds is always better than having one. Even when you do not intend to purchase the bed for your kids, it is still a useful asset if you have visitors coming to sleep over.

·         Cost effective

Double decker beds can save you money in the long run. At KCT, we have metallic beds, and this makes them durable. When you invest in them, you will acquire beds that will last for years. When you have kids sharing rooms, you do not need to purchase another bed since they can utilize a bunk bed.

·         Easy customization

These beds can also be customized to suit your needs. There are double-decker beds that can also be converted to sofa sets. There are beds that come with drawers. You can also choose from a variety of stairs design.

Is Hire Purchase A Good Option For Purchasing A Bed?

When in the market for a bed, you will realize that quality beds in Kenya cost you tens of thousands. Paying such an amount upfront might prove a difficult task, especially in the current economic times. This makes hire purchase worth your consideration.

With a hire purchase, one only pays 10% of the total cost to the dealer. You will clear the balance within the agreed duration in the form of installments. This helps you spread the cost and leaves you with cash to spend on other expenses.

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Hire purchase is a common way of acquiring assets in modern times. The many benefits of hire purchase make it one of the best ways to finance assets for business and homeowners. In Kenya, hire purchase is also known as lipa pole pole, lipa later, or lipa mdogo mdogo.

How Hire Purchase Works

Before signing a hire purchase agreement, it is crucial that one understands how this financing option works. Hire purchase contracts allow the buyer to acquire high-value assets at just a fraction of the total cost. Leading dealers in Kenya such as KCT require a down payment that is only 10% of the total cost of the asset. One can acquire and use the assets after making the downpayment. The remaining cost of the asset is paid in the form of installments.

Why settle for hire purchase when purchasing assets

There are plenty of benefits that will motivate you to consider hire purchase when purchasing assets. One of the common reasons for settling for hire purchase is that these contracts allow you to spread the cost. One doesn’t pay for the assets up front and this allows them to distribute the cost over a duration. Another good reason to acquire assets on hire purchase is the low-interest rates charged. Hire purchase contracts come with fixed low-interest rates. This makes it easier for you to manage your finances.

Best Practices for Hire Purchase Agreements

When purchasing assets, one will want to get the best possible deal. Here are some negotiating practices that can help you get the best hire purchase deals.

• As the hirer, one can negotiate with the owners about the duration of the hire purchase contract.
• It is also vital to negotiate the interest rates charged on the installments
• The hirer also requires researching other hire purchase dealers selling similar goods. Comparing agreements with two or more hire purchase dealers helps you ensure you are getting value for your money.
• When making a down payment, you can request a special discount from the owner of the goods.
• The hirer can also ask for an extension of time if they fail to pay an installment on time.
• It is also advisable to ask the owner of the goods to offer technical advice free of cost throughout the tenure of the hire purchase contract.

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Every business owner wants to learn the financing options available to them when acquiring assets for their business. Hire purchase is quickly becoming one of the best ways to acquire and own assets, especially in Kenya. Hire purchase, also known as lipa mdogo mdogo or lipa pole pole, allows a business owner to acquire assets at only a fraction of the total cost. This credit agreement requires the buyer to pay as low as 10% of the cost of the asset. One can clear the cost of the asset over a duration of time in the form of monthly installments.

Why consider a hire purchase for purchasing business assets

The number one reason to choose hire purchase financing when acquiring assets is the opportunity to spread the cost. This means that you do not have to pay the lump sum amount to acquire assets. Distributing the cost over several months means that you can have control over the cash flow of the business.

Another benefit of hire purchase is that the interest rates are favorable unlike in the case of term loans. Interest rates are also fixed, and this protects you from an increase in the cost.

Key Considerations Of Hire Purchase

Before signing the hire purchase agreement to acquire any asset, there is a need to keep several factors in mind:

1.      Goods types

Before entering a hire purchase contract, there is a need to assess the nature, condition, quality, and quantity of the assets you intend to acquire. It is also vital to determine whether you even require the assets. Business owners should focus on assets that help them enhance productivity.

2.      The capability to pay the installments

Acquiring goods on hire purchase can be tempting, considering that one acquires the goods before even completing the payments. For business owners, it is vital to check income and frequency to make sure that you can conveniently pay for the goods in installments on time. Late payments can attract penalties while failure to make payments can see the seller repossess the goods. When this happens, you will lose all the payments you have made to that point.

3.      Payments terms

One needs to determine the down payment they need to acquire the assets, the number of installments, and the frequency of making the payments. It is vital to check the interest rates and ensure it is proportionate with the market value of the assets.

4.      Title transfer

A good hire purchase contract also details the date for the transfer of the ownership of the assets to the buyer after meeting the conditions of the contract.

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Investing in quality home décor and furniture is one of the ways to improve your home. The decision to replace your existing furniture with new and better models not only enhances the aesthetic value of your home but also increases its value. Finding the right décor for your home also works to enhance your self-perception, productivity, and confidence. Investing in quality décor means you are creating an environment that allows you to thrive and become the best version of yourself.

Financing Options for Furniture and Home Décor

Quality furniture pieces and décor come at a cost. This means that a homeowner will want to learn different financing options they can utilize when they intend to improve their home. Here are some of the choices:

1.      Cash purchases

One of the options for buying furniture is a cash purchase. This allows you to immediately acquire and own the assets. The high cost of furniture and home décor however makes it impossible to make cash purchases at times.

2.      Term loans

Another option homeowners can utilize is seeking loans from a financing institution. One can acquire loans and purchase furniture through a cash purchase. However, lending institutions will require you to provide collateral and usually charge high-interest rates. Their interest rates are also subject to changes due to Central bank rates and this means that you can end up paying higher than you intended when taking the loan.

3.      Hire purchase

Hire purchase is also a common option among homeowners purchasing home furniture. A hire purchase is a credit agreement where one only pays a small fraction of the total cost to acquire the furniture pieces or home décor. After acquiring the furniture, one can utilize it as they clear the balance in the form of installments.

Why Hire Purchase is the Better Option for Furniture

There are plenty of reasons to consider a hire purchase when buying furniture for your home. The number one reason to utilize a hire purchase agreement is the chance to spread the cost. One can pay for an asset over an extended duration, and this helps you plan your income.

Another reason why hire purchase is the better option for furniture is that the interest rates for hire purchase agreements are fixed, and this allows you to plan ahead. The best part about hire purchase agreements is that one becomes the owner of the items after making the last payment.

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