- February 15, 2020
- Posted by: avantconsulting
In a Hire Purchase agreement, buyers pay a down payment and the remaining amount with interest over installments. Hire Purchase agreements are put down for merchandise and expensive goods. The buyer only officially and legally possesses the good after complete payment is made.
Hire purchases are generally popular among newly established firms who have yet to own much fixed assets that they can use as collateral for secured loans. However, hire purchase buyer also consequently bear higher interest costs.
Hire Purchases is popular amongst businesses that will need certain assets that will cost them quite a bit. So items such as the photocopier, usually will cost you a tens of thousands so such items are usually hire purchased.
For construction or engineering companies, equipments that will help you to complete more heavy lifting will cost quite a bit. But for some company, owning the asset might be more of a cost saver than to always renting or leasing one. So to own the equipment without killing off your cash flow is to do a hire purchase arrangement with the banks or financial institutions. This is also an asset backed loan, thus a secured loan that most people will love to deal in.
Avant Consulting Pte Ltd is a company that assist our customers to find the best deals with their loans in the company. Hire Purchase is one of our favorite instruments that we help our clients with.
Speak to us if you need help with such arragements.