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