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Homeowners and business owners can benefit from hire purchase options available in the modern financing market. Hire purchase financing is available for items that we use in our day-to-day lives. Kenya Credit Traders have a wide variety of products available on hire purchase terms.

What Is Hire Purchase?

Have you come across lipa mdogo mdogo deals? Are you wondering how the deals work? Well, lipa mdogo mdogo is another name for hire purchase in Kenya.

A hire purchase agreement allows customers to take home assets without paying the total cost upfront. The cost is divided into two parts. The first part is a deposit that one pays to acquire the asset. The other part involves payment of installments. The deposit can be as low as 10% of the total cost. The remaining cost is paid in equal payments which are spread within a given duration.

What products are available on hire purchase terms?

There is a wide variety of items homeowners and business owners can purchase on hire purchase terms. At Kenya Credit Traders, you can acquire household furniture, home entertainment appliances, Kitchen appliances, and household electronics, among others. In this post, we will discuss refrigeration options available on hire purchase terms.

Fridges and chest freezers on hire purchase

If you are looking to keep your products cool and fresh, there are two main options. Chest freezers and refrigerators are the two main options for keeping food, beverages, and farm produce fresh in your home or business. While they work almost similarly, the two options differ and each has its own advantages and shortcomings.

A fridge is typically designed to keep your food and beverages below room temperature but slightly above freezing. A fridge is advantageous considering that it is easy to access and also energy efficient. Some fridges such as this Haier 172L Fridge come with a freezer compartment for keeping your beverages frozen.

A Chest freezer on the other hand keeps items frozen. It is usually set at temperatures below zero degrees Celsius. One of the benefits of a chest freezer is that it is spacious. It can hold more items than a refrigerator, making it a better refrigeration option for businesses.

Choosing Between a Freezer And a Fridge

Are you torn between the Haier 172l fridge and chest freezers? The primary consideration when choosing is the purpose of the assets. When you need frozen items, a chest freezer is the right choice. Storage capacity is also a major factor when deciding, and a freezer comes with a bigger capacity when compared to a fridge.

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Hire purchase remains one of the options for many customers who are evaluating financing options in modern times. It refers to a purchase agreement that allows a buyer to acquire items by only paying a fraction of product’s cost. It is similar to rent-to-own agreements. The buyer gets the chance to use the assets while paying for the total cost in installments. The chance to spread cost is the biggest benefit of hire purchase deals.

Consumer Behavior and Preference For Hire Purchase

Consumer behavior for hire purchase options is a process influenced by various aspects such as economic conditions, personal factors, and cultural influences among others. Hire purchase is a financial decision. It is thus essential to take time and evaluate options before one signs a hire purchase agreement. While making the decision to opt for a hire purchase deal, here are some of the factors likely to influence consumer preference on hire purchase.

·         Personal factors

There are personal aspects that influence a customer’s buying behavior. The factors differ between customers, but here are some of the major ones.

1.       Age

There is no doubt that age is a major influence on buying behaviors and hire purchase options. There is a major difference between what youths prefer in home electronics and what the elderly choose. It is likely that a youth prefers home entertainment items such as home theaters and smart TVs. On the other hand, a middle-aged person will be looking to furnish their home with quality household furniture and quality kitchen appliances.

2.       Lifestyle

Lifestyle is also a major factor that influences consumer preference on hire purchase options. It is primarily how one opts to stay in the society. When one wants a lavish lifestyle, they will choose high-end furniture and top-notch appliances for their home.

3.       Occupation

Your occupation not only determines your income but also your lifestyle. It also determines the number of hours you spend in your home. This, in turn, affects your decision making with regards to assets to acquire for your home on hire purchase terms.

·         Economic Factors

Consumers’ buying habits are also heavily dependent on the economic situation in the country. A prosperous economy where there is enough money supply will lead to high purchasing power for consumers.

1)      Personal income

The amount a consumer has as disposable income will determine their decisions. When one has enough income to make a cash purchase, they will likely avoid a hire purchase agreement. On the other hand, when the disposable income is low, the customer will adopt hire purchase and spread the cost.

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Financial literacy refers to the ability of an individual to understand and utilize financial skills. It basically involves having a smart relationship with money. It involves learning the financial aspects of life. Just like we say education is the key to a successful future, financial literacy is also vital. The earlier one becomes financially literate, the better the chances for a successful financial future.

Why Financial Literacy Is Important

There are plenty of reasons why financial literacy is essential. One such reason is that financial literacy lays the foundation for various life goals. There is no denying it. Our success in life not only depends on how we can make money but also on how well we can utilize the money. With financial literacy, it is possible to learn important aspects such as planning for education, retirement, running a business, and even using debt responsibly. One also learns how to create a budget and track personal spending.

Financial literacy is also essential in modern days as there are numerous financial products for one to choose from. In recent times, there are exciting financial products that one can consider. Traditional lenders and online lenders have a wide variety of financial products to choose from. Having so many choices can present a headache. However, making the wrong move can cause a huge financial mess. It is thus vital to spend on financial literacy to ensure that you only make correct financial decisions.

It is also vital to spend on financial literacy as it helps avoid financial fraud. With the relevant financial skills, one is less vulnerable to scams and financial fraud.

There are a variety of ways to become financially literate. One such option is reading books. One can also talk to a financial professional. In modern times, online podcasts are a popular way to get insights on financial aspects. Emails subscriptions and blogs are also contributing to financial literacy.

Financial Literacy in Hire Purchase

Hire purchase is one of the leading financial products in modern times. It is a mode of financing where a buyer acquires products by paying a deposit and clearing the balance in equal installments. Kenya Credit Traders is at the forefront of educating consumers about how hire purchase works. Customers looking for insight into financial literacy in hire purchase can visit this blog page to learn from hundreds of articles covering the topic extensively.

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Lipa pole pole in hire purchase deals is becoming a common feature in Kenya. More consumers are choosing hire purchase deals to acquire household items such as furniture, electronics, kitchen appliances, and building materials.

How Hire Purchase Works

Lipa pole pole involves paying a down payment to acquire items. The down payment can be set at as low as 15% of the total value of the assets. The total cost is realized by breaking down the remaining balance into equal installments. The installments attract interest, thus making the total cost higher than a cash purchase. The ability to spread the cost is however the biggest benefit of choosing a lipa pole pole deal.

Managing Payments in Hire Purchase Agreements

The buyer acquires assets immediately they make a down payment and sign the hire purchase contract. However, they do not acquire the title from the dealer immediately. The title is only transferred at the end of the agreement. This is after the buyer pays all the installments. It is thus important to keep up with the payments. Late payments and defaulting on the payments will lead to repossession by the seller. In a case where the dealer repossesses the assets due to default, the buyer loses all the payments they had made to that point.

How To Manage Payments

The first step towards managing payments in a lipa pole pole deal is when one is signing the hire purchase contract. The hire purchase deals are flexible, making it possible to settle for a deal that suits your needs. Finding a hire purchase package that works for your income is imperative. One has the chance to choose a longer contract with lower monthly payments. This will ensure that every month you pay a small fraction of the cost to the dealer, leaving you with enough cash to spend on your other expenses.

To avoid running into a hire purchase debt, you might need to restructure the hire purchase contract with the dealer. Rather than run into late payments or defaulting, you can always contact the hire purchase company and restructure the agreement. In the case where your financial life faces changes, it is imperative to work out the repayment formula with the dealer in advance.

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Technology and technological advancements remain a major driving force across all industries in modern times. It is the same case for hire purchase agreements. Asset financing is now more accessible and efficient due to the incorporation of technology. The best hire purchase companies embrace new technology to give their customers the best shopping experience and make financing more efficient. In this post, we will determine innovative approaches hire purchase companies such as Kenya Credit Traders are taking for the benefit of the customers.

Innovative Approaches To Hire Purchase Processes

Most hire purchase companies rely on the internet to make the process of acquiring assets on hire purchase seamless. In the past, it would take you days to have the hire purchase agreement signed and take home the asset. However, the situation has improved greatly in modern times. Much data is available online as well as information about the hire purchase agreements. With the right approach, it now takes hours to have a hire purchase contract signed.

Apart from acquiring assets, payments are also made easier through innovations in the hire purchase industry. Currently, the emergence of mobile banking services means customers can now easily make payments on time. Hire purchase companies also have online portals that customers access to keep up with the payments. This gives the customer more control over their finances.

New Products As Part Of Innovative Approaches Hire Purchase Companies Are Taking

Another way leading hire purchase dealers are transforming the industry is by widening the scope in terms of products available on hire purchase terms. Land, cars, and other high-value assets were the only items considered for hire purchase in the past. It is not the same case in modern times. There is a wide range of assets available on hire purchase terms. From TVs and mobile phones to kitchen appliances and household furniture, you can get almost any item on hire purchase in modern times. Kenya Credit Traders is even providing construction materials on hire purchase terms. This is redefining how people understand hire purchase.

The technology keeps evolving and this will definitely affect hire purchase contracts. Artificial intelligence is also becoming a common feature across various industries. Will it affect how we handle hire purchase contracts?

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In Kenya, hire purchase deals are becoming a common feature. More people keep embracing hire purchase as a payment method or a financing option. This is mainly due to the many benefits that hire purchase deals offer.

Hire Purchase Deals in Kenya

Businesses and consumers can benefit from a hire purchase deal in modern times. In the past, people only used hire purchase deals for expensive assets such as vehicles or land. However, with the latest technology, hire purchase deals make it possible to acquire valuable items such as furniture, home entertainment devices, kitchen appliances, mobile phones, and construction materials among others.

In Kenya, hire purchase deals are better known as lipa pole pole or lipa mdogo mdogo. They are purchase contracts where a buyer commits to purchasing a given item by paying a deposit. After the down payment, the hire purchase dealer makes the items available for use by the buyer. One can clear the cost in installments, which can be daily, weekly, or monthly payments. Upon completing the payments, one becomes the owner of the assets.

Choosing a hire purchase company in Kenya

The only way a hirer can be sure of experiencing the benefits of a hire purchase deal is by choosing the right hire purchase company. You can never get the best services from an unreliable hire purchase dealer.

One of the first considerations before settling for a particular hire purchase company is whether it has the relevant licenses to provide the services. Licenses mean that a company meets the set requirements by the law. A licensed company will also provide its services within the set laws.

The longevity of a hire purchase company is also a prime consideration before working with them. Hire purchase dealers with many years of service tend to be more reliable than upcoming enterprises.

The reputation of a hire purchase dealership is also part of important concerns when looking to acquire assets on hire purchase terms. Invest time and effort delving into online reviews and ratings to find out whether a certain company can offer quality services.

KCT Benefits On Hire Purchase Deals

In Kenya, Kenya Credit Traders stand out as the leading hire purchase dealers. One of the reasons to settle for KCT is that they have a wide variety of assets. Whether you are looking to furnish your home, your rentals, or business, you can choose from a wide variety of items available at the website and physical stores.

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Are you considering signing a hire purchase agreement? Are you interested in a lipa mdogo mdogo deal? Hire purchase is growing as an option for homeowners and business owners looking to finance assets. However, before you sign a hire purchase agreement, learning about hire purchase is worth investing effort and time.

What Is a Hire Purchase Agreement?

A hire purchase agreement is a payment contract that allows buyers to acquire goods and pay in installments. The buyer needs to first pay a certain amount of money to the dealer as a down payment. The down payment is a fraction of the total cost and can be as low as 10% of the total cost. After signing the hire purchase agreement, the buyer, the hirer, takes home the items. The remaining cost is then split into installments, spread over a given duration.

Features of a Hire Purchase Agreement

There are aspects of hire purchase agreements that make them different from other payment methods. Here are some of the features;

  • One needs to pay a down payment before they can acquire the items from the dealer.
  • You are allowed to receive and use the items after you pay the down payment.
  • You do not assume ownership after acquiring the items. Ownership is only transferred after you pay the total cost of the assets.
  • To pay the full cost of the items, the hirer, or the buyer, pays periodic payments, known as installments.
  • There is interest charged on the installments, and this makes the total cost higher than in a cash purchase.
  • The interest charged is fixed, meaning the total cost doesn’t change or the amount one pays as installments.
  • The dealer transfers ownership to the buyer once they complete payment in full.
  • The dealer can repossess the assets in a case where the buyer defaults on the payments. If there are payments done at the point where the items are repossessed, including the deposit, they will be considered as a fee for using the items.

The amount that one pays in installments depends on several factors. One such factor is the fraction one pays as a down payment. Paying a bigger fraction as a deposit means that you will have a smaller fraction to pay in installments. The duration you choose for the hire purchase agreement also has an effect on the installments. One can choose a long contract, with a smaller fee in installments, or a shorter contract with a high fee in installments.

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Are you planning to purchase items on hire purchase terms? Are you wondering how to manage your finances with hire purchase?

Hire purchase agreements remain one of the most favorable financing options in modern times. When purchasing high-ticket items such as home entertainment devices, kitchen appliances, household furniture, or other items, an outright purchase might be out of reach. However, choosing hire purchase as a financing option allows you to split the cost and pay over several months.

How Hire Purchase Works

Hire purchase financing involves finding a hire purchase dealer selling the items you require. It is worth noting that not all shops accept hire purchase agreements. However, there are dealers such as Kenya Credit Traders that sell almost all household items on hire purchase terms. When you sign a hire purchase deal, you pay a down payment to the dealer and take home the assets you intend to own. However, you do not immediately acquire ownership of the items. The title is only transferred by your hire purchase dealer after the completion of all the installments.

Managing Your Finances with Hire Purchase

Hire purchase allows you to have better management of finances than any other financing option. Firstly, hire purchase allows you to acquire items without purchasing them outright. This means that you only pay a fraction of the total cost. You do not have to deplete your savings to buy household appliances. With hire purchase, you will only pay a fraction and clear the balance in installments.

Secondly, hire purchase deals come with fixed interest rates. This means that the amount one pays as installments does not change throughout the hire purchase agreement. Therefore, it is easier for one to budget and make financial planning when they choose hire purchase considering that installments remain consistent.

Repayment flexibility is also one of the vital reasons to opt for a hire purchase deal. When signing the hire purchase deal, you will have the flexibility to choose the duration of the agreement. This flexibility ensures that you can adjust the monthly payments to suit your income as well as your financial situation.

Hire purchase also ensures that you have enough amount to make savings every month. Businesses that choose hire purchase deals to acquire assets will have a favorable cash flow. Paying only a fraction of the cost every month means you are left with money to spend on other expenses.

 

The electronics and home appliances field keeps experiencing high-tech advancement. The latest home entertainment electronics and kitchen appliances have advanced designs, features, and functionality. The new devices and appliances also focus on saving energy. Investing in them might seem costly at first, but you save much on energy bills when you choose them. In modern times, smart appliances range from Smart TVs, smart microwave ovens, smart washing machines, and even smart air conditioners. Some of these appliances come with voice controls, giving you more freedom and control over them. Artificial intelligence is also part of the latest developments. AI aims to enhance the functionality of the electronics in your home.

Hire Purchase for Home Entertainment and Kitchen Appliances

The initial cost of purchasing modern appliances and gadgets for your home is the main limitation for homeowners. The latest appliances will cost tens to hundreds of thousands to acquire. This has left most homeowners stuck with the old models that are not energy efficient. However, hire purchase is the perfect solution if you do not have the money to upgrade your appliances or electronics outright.

How hire purchase works

Hire purchase aims at making products accessible and affordable by splitting the cost into small affordable payments known as installments. The hire purchase agreements aim at helping the homeowner acquire items that are out of reach in the case of an outright purchase. To get your dream kitchen appliances, all you need is a fraction of the total cost as a down payment. In most cases, the amount is as little as 15% of the total cost. The remaining balance is then divided into equal amounts over a given duration. The duration can be weeks, months, or even years depending on the value of the assets.

Role Of Hire Purchase In Promoting Technological Advancements In Kitchen Appliances And Home Entertainment

When looking to upgrade appliances in your home, hire purchase should be one of your considerations. One of the reasons to consider hire purchase is the fact that it provides an opportunity to spread the cost. You do not pay for assets outright, but the cost is spread over a given duration. During the period when one is making the payments, they will still be utilizing the assets. The role of hire purchase is not only to make assets accessible but also affordable.

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Are you looking to take your home entertainment to the next level? Do you have a renovation or remodeling project? Are you on the lookout for the best kitchen appliance deals?

Home improvement doesn’t always involve spending on new constructions or renovation projects. At times, all that one needs to make their home more functional is looking for quality appliances. You can Improve your kitchen by spending on a cooker, a fridge, or even a dishwasher. Your living room will become livelier when you opt to spend on an Android TV and a home theater.

Cash Purchase

Cash purchases are popular among homeowners in the market to acquire assets or items. In a cash purchase, one pays outright for the items. After the payment, you acquire the items and become the owner. However, the high cost of kitchen appliances and home entertainment electronics means that at times a cash purchase may be out of reach.

Hire Purchase Agreements

Hire purchase agreements are the ideal option for a homeowner without cash to buy assets outright. In a hire purchase deal, after determining the assets to purchase, you will pay the dealer as low as 15% of the cost. This payment is known as a deposit or a down payment. The dealer allows you to take home the items and use them. However, one needs to make installment payments to clear the balance and own the items.

Cash Purchase Vs Hire Purchase for Appliances and Home Entertainment Appliances

Hire purchase and cash purchase differ in various ways. Each option has benefits as well as shortcomings. Here are some cash purchase vs hire purchase considerations.

1.      Payment method

In a cash purchase, the buyer pays for full price of the items outright. On the other hand, hire purchase involves splitting the cost into affordable installments.

2.      Ownership of items

In a cash purchase, one immediately becomes the owner after making an outright payment to the dealer. In a hire purchase agreement, one acquires items after the down payment, but they do not immediately become owners. One only qualifies to own the assets after the last installment.

3.      Total cost of the appliances

The total cost of appliances in a cash purchase is usually lower than in the case of a hire purchase. The difference is brought about by the interest charged on the installments. While the total cost is higher in a hire purchase deal, the affordability and flexibility of the installments make hire purchase a favorable option.

Kenya Credit Traders is your top hire purchase company for appliances and home entertainment.

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