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1. What is a Hire-Purchase Agreement? 

A hire-purchase agreement is a credit-based agreement where the buyer makes an initial down payment and the balance payment (including interests) is paid later, partly or wholly. It is an arrangement usually done to get expensive products on the latest basis while in order to use the product only when you need it. These kinds of agreements are usually used by businesses to acquire assets. The ownership of products is not transferred in such agreements on the first instalment. 

2. Why are these agreements Needed? 

a. It is a favourable alternative to a lease as you have the option to own the product after making payments. 

b. The product is ready to be used by the purchaser as soon as he pays the first instalment.

c. It is a simple transaction with easy financing.

To access this Sample Agreement / Template, please fill in the details below and it will be emailed to you shortly.