Retail purchases involve sales of products in the form of goods or services to consumers. On the other hand, wholesale purchases involve sales of goods to other businesses that in turn sell to the consumers. When you require items for your home, business, or organization, you will always have options. However, it is important for one to make sure that they make sound financial decisions at all times. This includes selecting the best payment plan.
Payment options available to retail customers
There are two main payment plans available to consumers. One can either make a cash purchase or seek financing. Cash purchase means that one will have to pay all the cash before acquiring the products. On the other hand, financing allows you to seek help from lending organizations to purchase a given product. This is usually in the form of a loan.
Hire purchase
Hire purchase is also one of the payment plans that you can consider when in the market for assets. Retail hire purchase allows you to acquire a variety of assets, ranging from furniture, and electronics, to bigger assets such as cars and houses. It is one of the most affordable payment plans, and it has numerous benefits for consumers.
Reasons to consider retail hire purchase
As a buyer, there are numerous benefits you are set to enjoy when you choose retail hire purchase. Here are some of them.
1. You do not have to pay all the cash upfront
In some cases, when out to buy assets, one might not have all the money. With a hire purchase, you just need a fraction of the total cost of the item. After paying this down payment, the remaining cost will be spread across a given duration, making it the most affordable way to buy assets.
2. Own the assets at the end of the agreement
While hire purchase is almost similar to leasing, there are some differences as well. One such difference is that one becomes the owner of the asset at the end of the hire purchase agreement. Hire purchase is more like a rent-to-own agreement.
3. Fixed interest rates
One of the best parts about a hire purchase is that the interest is fixed for all installments. In a case where one settles for term loans to acquire assets, the loans are subject to changes, depending on inflation, and other banking policies. However, if you choose retail hire purchase, you do not experience these changes, thus saving your cash.
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