Every business owner wants to invest in quality assets that not only enhance the functionality of the working space, but also makes work easier. Finding quality assets can also enhance the aesthetics of your office. Finding the right furniture pieces works to enhance the value of the business. It also makes the right first impression for customer visiting your home.
While a business owner wants to invest in improving the working space for the employees and clients, at times, assets they intend to purchase can prove expensive. In such cases, the business owner is eager to determine the financing options available to them. One such options is a hire purchase plan.
Why hire purchase is the right choice for your business
A business owner is set to benefit from acquiring assets through hire purchase financing. Here are some of the benefits:
1. Improved cash flow
One of the best reasons why you need to consider hire purchase financing when acquiring assets is that this helps you improve cash flow in your business. When you purchase high value assets outright, it might have an effect on your cash flow. The business might be left without enough cash to cater for expenses and other operating costs. With hire purchase, you only need to make a down payment. Afterward, the business makes payment to the dealer on the set date, thus giving them control over the cash flow in the business.
2. Fixed repayments
One of the best parts about hire purchase plans is that the repayments are fixed. The interest rates charged on the installments is fixed and not subject to changes by the Central Bank. This not only makes budgeting straightforward, but it also means that there will be no nasty surprises as a result of changes on interest rates that will cause an increase in the total cost of the assets.
3. Lower interest rates
If you are looking to financing a given asset, one of the options is to approach a lender for a term loan. The major downside of the term loans is that the interest rates are high and thus make the total cost of a given asset high. With hire purchase plans, the interest rates are lower and not subject to changes.
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