Hire purchase is one of the oldest payment options in Kenya. In fact, the Hire Purchase Act 1 was enacted in 1968 and was implemented on 2nd November 1970. However, it has evolved in modern times due to new market dynamics. In the past, hire purchases usually focused on business assets, but in modern times, it is possible to even acquire a mobile phone on hire purchase.
Why Hire Purchase Is A Favorable Payment Method
There are a variety of benefits that hire purchase offers to the seller as well as the hirer.
Benefits Of Hire Purchase To The Buyer (Hirer)
If you choose to buy goods on hire purchase, you will enjoy the chance to reap the benefits of the assets even before they own them. Immediately after you pay the deposit, the seller delivers the assets, allowing you to utilize them. Upon paying the last installment, you gain ownership of the item.
The buy also has the chance to plan their finances when they choose this payment method. The best traders such as Kenya Credit Traders Limited will allow you to agree to a fixed term and deposit that is favorable. The interest rate and installments are fixed, thus allowing you to conveniently plan for your finances.
Unlike other financing options such as loans, overdrafts, or credit cards, when you choose to hire purchase, you enjoy lower interest rates. This saves your money in the long run.
Benefits of hire purchase to the sellers
The major benefit of hire purchase to the sellers is that they can enhance sales as well as profits. The convenience that buyers enjoy when they choose this payment method definitely encourages them to make purchases. The interest charged on products also works to increase the profits.
Lipa Mdogo Mdogo, as hire purchase is commonly referred to in Kenya, allows you to purchase assets for your home or even business. At Kenya Credit Traders, we offer a broad variety of products ranging from Dining tables, beds, TVs, Solar panels, and Mobile phones to refrigerators and microwaves.
Head over to our site to view our products. You can also learn about the best deals by checking our Facebook page, Kenya Credit Traders.