SOURCES OF FINANCE SAFARBEK 12-A WHAT IS HIRE PURCHASE ? • Hire purchase is an external source of finance in which the purchaser gets the possession of the goods without paying the full price for them. ADVANTAGES OF HIRE PURCHASE SYSTEM • CONVENIENCE IN PAYMENT • INCREASED VOLUME OF SALES • INCREASED PROFITS • LESSER RISK DISADVANTAGES OF HIRE PURCHASE • HIGHER PRICE • HEAVY RISK • ASSETS OWNED ONLY AFTER THE LAST INSTALLMENT IS PAYED
