Financing is always one of the top considerations when looking to acquire high-value assets. One will want to learn the payment options they can utilize to acquire assets.
In most cases, we use cash payments to buy an asset outright. However, this might not be possible in some cases. There are instances when you need items but you do not have funds for an immediate purchase. In some cases, one might overlook purchasing the items, but in other cases, one might have to compromise and purchase a less effective or low quality asset.
Hire purchase financing
Hire purchase agreements provide homeowners and business owners the chance to acquire items and make payments in installments. Hire purchase agreements need one to make a down payment for the asset. After making the down payment, one requires completing the balance in the form of periodic payments. Some dealers accept daily, weekly or monthly payments.
During the period when one acquires and uses the asset, they are referred to as a hirer. They will be hiring the assets until they make the last payment. The dealer transfers ownership of the assets to the buyer after they pay the last installment.
Digital financing
Technology has plenty of benefits, and its influence can be felt across all industries. In the financial world, there are new and modern financial products available to customers through the internet. When you require cash, one can easily turn to the internet to find loan products.
In Kenya, digital financing has been made more accessible through mobile loan apps. The online lenders offer short term loans or payday loan products that one can utilize to find cash to finance a purchase. M-pesa also makes the process of making repayments easier for the online loans.
Hire purchase vs digital financing
There are plenty of reasons why hire purchase is a viable option in the digital financing age. One of the best benefits of hire purchase is that they offer better interest rates. In most cases, the online loans will charge high interest to the borrowers, and the interest rates can change depending on rates set by the Central Bank. Hire purchase not only offers low interest rates, but the repayments are also fixed.
Leading hire purchase dealers such as Kenya Credit Traders have also embraced technology. One can easily find the assets they need for the business or home on the website and start the process of acquiring them on hire purchase.
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