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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.

Learn more about hire purchase deals on Kenya Credit Traders blog. Get the best hire purchase deals by following Kenya Credit Traders on Facebook.

 

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.

Learn more about hire purchase agreements on our blog. Follow Kenya Credit Traders on Facebook.

 

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.

Find the best hire purchase deals for home furniture here. Follow Kenya Credit Traders on Facebook.

Purchasing appliances and electronics for your home is one of the best decisions you can make as a homeowner. We need different appliances in our day-to-day activities. From refrigerators to dishwashers, washing machines to dryers, and air conditioners to water heaters, there are numerous appliances that one can invest in.

Energy Efficient Appliances

In modern times, electronics and appliances come with models and designs that consume less energy. These appliances can maximize small amounts of energy to ensure that they complete tasks. They achieve this by operating under lower temperatures as well as energy settings to sustain their functionality.

Main Benefits Of Energy-Efficient Kitchen Appliances

Here are some of the reasons to consider investing in energy-efficient appliances.

·         Energy savings

The number one reason to settle for new models that are energy efficient is that they save energy by utilizing the minimum amount of energy to complete the tasks. One can utilize the saved energy to handle other tasks in their home or office.

·         Money savings

When you spend on these appliances, they will greatly help you save money by reducing your energy bills. By choosing to replace your old models with energy-efficient models, you can save up to 30% of the cash you spend on energy bills.

·         Environmentally friendly

If you care for our environment, then it is worth considering purchasing energy-efficient kitchen appliances. These appliances help reduce the demand for electricity in our homes, and this will mean that there is less exploitation of natural resources. Electricity is generated from natural gas, oil, coal, or water, and less demand will mean that we can conserve these resources. These appliances also help control pollution and emissions, and this will work towards reducing global warming.

How you can use hire purchase to acquire energy-efficient kitchen appliances

When we are in the market for appliances, we tend to only focus on the initial cost of the products. However, in modern times, you can acquire almost any appliance you need through hire purchase agreements. At Kenya Credit Traders, we have all kitchen appliances and you only require as low as 10% of the total cost to acquire them. We also have flexible installments to allow you to completely purchase the products and become the owner. Our lipa pole pole deals help you upgrade your appliances and save you money in the long run.

Learn about the latest products available on hire purchase by following us on Facebook.

Home improvement is a continuous process, and there is a variety of ways to achieve this goal. One can spend on a remodeling project, repairs, or even find new and better appliances to purchase. Improving your home not only aims at improving its value but also helps enhance functionality and quality of life.

Upgrading Your Kitchen

A kitchen is the heart of your house. We spend a good fraction of our time in the kitchen every day. When you are at home, you spend hours cooking for your family in the kitchen, and you will want the process to be hassle-free. Remodeling a kitchen can help you improve the design, but it is also expensive. One of the ways to improve your kitchen is spending on quality appliances.

Modern Energy Efficient Appliances

If you are still relying on your old appliances in your kitchen, it might be the reason you are still spending a lot on energy bills. Most of the appliances are not energy efficient, and using them only leads to high energy bills. It is advisable to consider upgrading to modern appliances due to the many benefits they provide.

The decision to purchase new appliances to replace the old ones will work to save you cash in the long run. The new generation of dishwashers, refrigerators, dryers, washing machines, and other kitchen appliances has a design that maximizes functionality by utilizing minimum energy. By investing in these appliances, you can expect your energy bills to reduce significantly.

Acquiring Kitchen Appliances on Hire Purchase

When you want to purchase kitchen appliances, their high cost can be a hindrance at times. The hard economic times where inflation is making life hard financially might make it impossible to save enough to purchase these appliances. However, there is a better way to acquire and own kitchen appliances.

One of the best decisions a homeowner can make is finding kitchen appliances on hire purchase terms. Hire purchase dealers such as Kenya Credit Traders only require you 10% of the cost of the appliances as a down payment. You will clear the balance in the form of installments. The good part about a hire purchase is that the interest rates are fixed. One can also negotiate the terms to ensure you get the best deal. When you pay your last installment, you become the owner of the appliances.

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

A kitchen is the heart of any home, and it is one of the spaces where we spend much of our hours every day. It is thus vital to always find ways to improve the kitchen. Kitchen improvement projects also involve finding the best appliances and ensuring that they are functioning optimally. This will work to enhance the quality of life.

Top Appliances to Upgrade in Your Kitchen

There are different instances when one wants to purchase new appliances for their home. One such instance is when they relocate to a new house. You will want to have new appliances especially if the new kitchen has more space.

One can also choose to spend on new kitchen appliances when having a home improvement project. If you have been relying on old appliances, there are chances that they cost you a lot in energy bills. Finding new generation appliances will save you money since they are energy efficient.

Another reason to find new appliances for your kitchen space is if you intend to sell the home. Nobody intends to purchase a home with unsanitary, dated, or malfunctioning appliances. Upgrading your kitchen appliances will work to increase the value of your home. Here are some top appliances you need to consider upgrading.

1.      Refrigerator

Finding a new fridge for our home makes it more functional, comfortable, and cool. New fridges not only save you money, but they also come with better features.

2.      Stove

When you invest in a new stove makes your home look modern and up to date. The new models are sleek and visually appealing.

3.      Dishwasher

It might be time to replace your old, leaky, noisy, and moldy dishwasher with a new model. The new dishwashers come with warranties, increase energy efficiency, and noise reduction and allow for remote operation.

4.      Washer/ Dryer

There are top-notch washers and dryers available at Kenya Credit Traders that are eco-friendly and tech-savvy. They are also quiet, functional, beautiful, and most importantly energy efficient.

Acquiring Kitchen Appliances On Hire Purchase

You do not have to wait until you save enough cash to purchase the latest appliances. You can easily find appliances on hire purchase terms. With as low as 10% of the cost of a given appliance, you can acquire it and pay the rest of the cost in the form of installments. Visit our blog to learn tips and tricks of hire purchase when out to acquire kitchen appliances.

The general rule for the maintenance of your appliances is to keep them clean at all times. Always keep the appliances free from dirt and debris to keep them working optimally.

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We all require purchasing household goods at some point in our lives. When one constructs a new home, one will need to invest in quality household goods. One might also opt to upgrade the existing household goods after relocating to a new house.

Lipa Mdogo Mdogo Options

When out to buy household goods, any homeowner will be eager to learn the available options. Apart from the quality of the assets and the price, one will also want to find out the payment options available to them. There are dealerships that only take cash payments for the items. However, in modern times, lipa mdogo mdogo is becoming a favorite way to pay for assets.

Lipa mdogo mdogo is another name for hire purchase deals in Kenya. In this payment mode, the buyer is only required to pay a fraction of the total cost of the household goods they seek to acquire. After this payment, known as a down payment, one acquires the items immediately for their use. The seller however remains the owner of the assets while the buyer is known as the hirer. You will need to make periodic payments to complete payments for the assets. After the last payment, you become the owner of the goods.

Advantages Of Lipa Mdogo Mdogo

There are plenty of reasons to choose lipa mdogo mdogo options offered by leading companies such as Kenya Credit Traders due to the many advantages of this payment method.

The number one reason to use lipa mdogo mdogo to buy household goods is that you will not need all the cash to buy a given item. You just need a fraction of the total cost of the item you intend to purchase to acquire it. This makes it possible to acquire new models with better features as you do not have to pay in cash.

Another reason to choose lipa pole pole to purchase household goods is that you will own the asset at the end of the agreement. Other hiring options such as a lease do not allow you to own assets but you return them to the seller at the end of the agreement. Lipa pole pole on the other hand allows you to become the owner of the assets immediately after paying the last installment.

Find the best lipa mdogo mdogo deals in Kenya by following Kenya Credit Traders on Facebook.

Every homeowner requires acquiring household goods at some point in life. There are numerous electronics and appliances that we require to make our lives more comfortable in our homes. A refrigerator ensures there is a cold drink available to your family, especially during the hot and sunny summers. It also helps keep farm produce and other perishable foods fresh. We need dishwashers in our kitchen as well as keep our dishes clean. Investing in quality furniture not only makes your home functional but also adds to the value of your home.

What is lipa mdogo mdogo?

Lipa pole pole or lipa mdogo mdogo is now one of the favorite ways to acquire assets or appliances in Kenya. There are plenty of online stores as well as physical shops selling their goods on lipa pole pole terms. You can acquire almost any asset in Kenya using lipa mdogo mdogo, from smartphones to boda boda and cars. But what is lipa mdogo mdogo?

Lipa mdogo mdogo is another name for hire purchase agreements in Kenya. It is a credit agreement where one pays a down payment for an asset they intend to purchase and then clear the balance in the form of periodic payments known as installments.

How to use lipa mdogo mdogo to acquire household goods

Hire purchase is one of the best ways to acquire assets in modern times, especially when everybody is experiencing financial strain. There are plenty of reasons to settle for lipa mdogo mdogo to acquire household goods.

With lipa mdogo mdogo, you only require as low as 10% of the total value of the household goods you intend to buy. Immediately after paying the 10%, you can acquire the asset and use it in your home or office. However, you do not become the owner of the items until you pay the last installment.

Why use lipa mdogo mdogo to acquire goods

The biggest benefit of lipa pole pole deals is that they allow you to spread the cost of the items you are purchasing. You do not have to spend your entire salary or savings on a given household item while you can spread the cost over a long duration. The best part about a hire purchase agreement is that you agree to the terms of the payments with the seller and this allows you to get the best possible deal.

Find out the latest assets available on hire purchase terms by following Kenya Credit Traders on Facebook.

Are you looking for a convenient way to purchase assets in modern times? There is no better option than utilizing malipo ya pole pole. There are plenty of reasons to consider this payment method to purchase a wide variety of items you need to enhance your quality of life.

What is malipo ya pole pole

You might have heard about lipa later products or lipa mdogo mdogo products in the Kenyan market. These are usually marketing names that refer to hire purchase agreements. In these agreements, a buyer looking for assets to purchase pays a deposit which acts as a hiring fee. The buyer then pays for the items they acquired in periodic payments known as installments. In modern times, installments can be daily, weekly, or monthly payments.

Why settle for Malipo ya pole pole with KCT

Kenya Credit Traders, KCT, is one of the leading hire purchase dealers in the country. They offer a wide range of products that buyers can acquire by paying a small amount of cash in the form of a deposit. After making the payment, one acquires the products immediately for their use. However, the dealer remains the owner of the assets until when the buyer makes the total payment for the items.

The number one reason to utilize the lipa mdogo mdogo option when purchasing assets is the chance to spread the cost of the products. At times, an asset that you require might be equal to your monthly salary. If you purchase it in cash, it means you use all your salary to purchase the product. In that case, you will not be left with money to pay for other bills and expenses. With lipa later products, you will only pay a fraction of your salary as the deposit and a smaller fraction as monthly payments, allowing you to spread the cost over a long duration.

Another reason to consider malipo ya pole pole when buying household goods is the chance to enjoy flexible payment terms. In most cases, the hire purchase agreement is formulated by the seller but in consideration of the buyer’s financial status or income. You have a chance to haggle to get better repayment deal and even save money when using a hire purchase to buy assets.

The best part about lipa pole pole is that you acquire the items immediately after paying the deposit. You do not have to wait until you have enough cash to buy a given asset in cash while you can pay a fraction of the total cost and make the payments as you use the items.

Find the best hire purchase deals in Kenya here.

Any business and homeowner will be on the lookout for electronics at some point in life. We need TVs to improve our living rooms and take entertainment to the next level. There is no better way to get rid of stress than watching Netflix with your loved ones or enjoying football matches with your friends. There are a host of appliances that we need in our homes to enhance our quality of life.

Payment options for electronics and appliances

There are several considerations when out to purchase electronics and appliances. One such consideration is quality. It is always advisable to focus on the quality of the products you intend to purchase and ensure that you are getting value for your money. Cost is also part of the vital considerations when purchasing assets. One will be eager to find a deal that saves them some money.

Another essential consideration before acquiring any assets is the available payment options. Some businesses only accept cash purchases while others accept financing or installment purchases. In case you are out to learn the differences between cash purchases and hire purchases agreements, here is the comparison.

Cash payments vs Hire purchase agreement

Cash payments involve paying the total cost of the product at once to acquire it. Hire purchase on the other hand entails paying a fraction of the total cost for the product and completing the payment in periodic payments known as installments. Here are the key differences between the two payment modes.

·         Ownership

When you purchase the electronics in cash, you immediately acquire them and also become the owner. With a hire purchase contract, once you pay the deposit, you acquire the assets, but you only become the owner after paying the last installment.

·         Total cost of the products

In most cases, the total cost of appliances and electronics is lower when one makes cash purchases compared to a hire purchase. The difference is brought about by the interest charged on the installments in hire purchase agreements.

·         Effects on cash flow

While cash purchases might seem a good option for appliances or electronics, the downside is the effect that comes with paying a lumpsum amount. A good smart TV, for instance, will cost several tens of thousands to purchase. Paying such an amount at once might mean that you spend an entire salary and even use some of your savings. With a hire purchase, you can spread the cost of the smart TV over several months. This will free some cash that you can use on other expenses and even allow you to make savings.

Learn more about hire purchases and cash payments on our blog. For the latest hire purchase deals in Kenya, follow us on Facebook.

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