Hire purchase arrangements remain a favorable financing choice for businesses and homeowners looking to acquire assets. The numerous benefits hire purchase offers are the primary reason to consider this financing option. With a wide variety of assets available on hire purchase terms at Kenya Credit Traders (KCT), we will check some of the KCT payment options.
How Hire Purchase Works
Hire purchase arrangements work for homeowners and business owners who want to acquire items but cannot pay in cash. Unlike a cash purchase where must to pay all the cash before acquiring assets, a hire purchase agreement only requires a fraction of the total cost. When one pays this amount, known as a deposit, they acquire the assets for their use. The balance is spread out into installments.
Flexibility Of Hire Purchase Contracts
Flexibility is one of the biggest perks of a hire purchase agreement when settling for electronics like Vision Android Smart Tv. While there are many benefits of utilizing hire purchase agreements, flexibility is arguably one of the best reasons to settle for a hire purchase. A flexible agreement gives you control over the payment. Here’s how KCT payment options are flexible.
Flexible Payment Schedules
Hire purchase agreements come with flexible payment schedules. The ability to spread the cost is one of the best reasons to choose hire purchase agreements. Depending on the value of the assets, as well as your income, you can choose to make daily, weekly, bi-weekly, or monthly payments. At KCT, mobile money payments through an M-Pesa Paybill account are available. This gives you control over the repayment.
Flexible Deposit Amounts
Before spreading out the cost into installments, one has to make a down payment. The down payment is also known as a deposit. The deposit determines the balance that one has to repay in installments. Making a big amount as a deposit means you have less balance to pay in installments. KCT requires as little as 15% of the total cost from the buyer as a down payment. The buyer chooses the amount to pay as a down payment, making the hire purchase a flexible option.
Flexible Contract Duration
The duration of a hire purchase agreement is not fixed. However, it depends on other factors such as the deposit, payment schedule, and installments. By choosing a higher amount as a deposit or installments, the contract duration is shorter. However, you can also choose lower amounts as deposit and repayments, making the contract duration longer.
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