leasing and hire purchase are financial facilities which allow a business to use an assest over a fixed period,in return for regular period. if any of you take lone from a financier it will put interest over the hole lone for hole time except of putting interest from month to month.
if you take loan from bank it will put interest on money form month to month.
origin and development of hire purchase
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Hire purchase can give the good profit,
Hire purchasing helps customers to buy articles at instalments through EMI,instead of paying lumpsum at a time.However, there are chances of pushing inferior articles through hire purchase by sellers. Even the customers may default and/or delay payment of instalments leading to litigation.
One advantage of hire process is that it allows low-income individuals to purchase items that would otherwise be out of their budget. Hire purchase is also known as installment plan.
If a company fails to make it's repayment under the hire purchase agreement then the loan providers can tale the goods bought under the hire purchase as settlement for the loan.
The legal term for hire purchase is a contract. Companies may prefer using hire purchase because it spreads the costs of expensive items over a period of time.
higher purchase
caluculation of intrest under hire purchase system
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The verb to hire has the participle adjectives hiring and hired. For the noun hire, it can be used as a noun adjunct (hire car, hire purchase).
Hire Purchase