Using Hire Purchase to Invest in Your Future: Opportunities for Growth in Kenya
You will never be short of options when determining investment opportunities in Kenya. The Kenyan economy is experiencing growth across almost every sector. From agriculture, manufacturing, tourism, and infrastructure, there are plenty of investment opportunities.
Investment opportunities are not only a reservation for foreign investors. Even local investors can take charge of the economy by opting to utilize available investment opportunities. Investment can be in a large or small scale.
How financing affects investment in Kenya
The ability to invest in almost any sector depends mainly on the availability of funds. It is not practically possible to execute an investment plan without proper financing. Even a small investment requires one to have a workable financial plan. Purchasing assets, hiring staff, and meeting other expenses is only possible when you have adequate finances.
Financing options available to investors
There are several options one can utilize to fund an investment. Here we analyze various financing options.
In most cases, when one intends to start a business, one of the options they can utilize is savings. This merged with grants from friends and relatives can help one raise funds for an investment opportunity. However, with the hard economic times, it might not be possible to make enough savings to fund your startup.
Loans from different lending institutions offer another way to raise funds. Apart from traditional lending institutions, digital lending platforms also provide access to finances. The major downside of loans is usually the high interest rates charged, especially in the case of short-term loans. Interest rates charged on loans are also subject to changes depending on the regulations from the Central Bank.
· Hire purchase
Hire purchase has become one of the favorite financing options among investors in modern times. It allows investors to acquire assets and pay for them over a long duration. In most cases, the hire purchase dealers allow you to pay for as low as 10% of the total cost. They provide the assets after one makes the down payment.
Reasons To Utilize Hire Purchase Opportunities
There are plenty of benefits of utilizing hire purchase growth opportunities. One such benefit is the chance to spread the cost. Hire purchase allows you to acquire an asset and pay for it over a long duration.
Hire purchase also offers a chance for investors to acquire new assets. Unlike in leasing where one returns the assets to the dealer at the end of the contract, you become the owner of a given asset at the end of a hire purchase agreement.
Flexibility is also part of the reasons to consider hire purchase. After the down payment, one has a chance to negotiate the number of installments and the duration of the contract depending on the income.
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