What is hire purchase in business studies
1 answer
Hire purchase is a type of buying goods in which the buyer pays for the goods in regular installments over a period of time. The buyer possesses and uses the goods, but ownership remains with the seller until the final payment is made. Once the final payment is completed, the ownership of the goods is transferred to the buyer. This method of purchasing allows businesses to acquire assets without making the full payment upfront, making it a popular financing option for businesses.