Acquiring high-value assets in modern times requires investing effort and time. It is crucial that one determines the best options available to them. Apart from determining the best quality and the right dealer, one wants to focus on getting the best deal. This is not only about getting a discounted price, but it also includes getting the best payment strategy.
Financing is a vital factor when looking for high-value assets. Businesses looking to purchase machinery or expensive equipment will be eager to determine a reliable financing option. One of the leading financing choices for businesses is hire purchase. In modern times, hire purchase is also the leading choice for individuals looking to acquire expensive assets or items for their home.
How Hire Purchase Works
A hire purchase agreement is an arrangement that allows the purchase of big-ticket items by making a deposit and paying the rest of the cost in the form of installments. In Kenya, hire purchase dealers accept daily, weekly, and monthly payments. In most cases, hire purchase agreements require the buyer to pay at least 10% of the total cost of the assets. The buyers pay the balance plus interest in the form of installments.
Hire Purchase Reliability
There are a variety of reasons why hire purchase is one of the most reliable financing options for businesses or homeowners. Here are some of the key reasons to settle for a hire purchase.
1. The ability to spread the cost
Hire purchase allows a buyer to spread the cost of the assets they are purchasing. You do not pay for assets upfront and this means that you do not make a large upfront investment.
2. The chance to acquire assets immediately
With a hire purchase, one does not require all the cash to acquire an asset. You only pay a fraction of the total cost and the dealer delivers you the items. After paying the deposit, the buyer has the right to use the assets.
3. Fixed interest rates
One of the key highlights of hire purchase reliability is fixed interest rates. Unlike term loans, where rates can change at any time depending on inflation and Central Bank rates, hire purchase rates are fixed. This allows for budgeting and planning, considering that you are aware of the amount you are set to pay every month.
4. Higher chances of approval
Hire purchase deals are more likely to get approval unlike loans or other financing options. Even buyers with low credit scores can get hire purchase deals, and when they make payments in time, it will be a chance to improve their credit rating.
Get the best hire purchase deals at Kenya Credit Traders.
