What are the advantages of hire purchase as a source finance?

1. Spreads the cost: Hire purchase allows you to pay for an asset in installments over a period of time, making it more affordable.

2. Offers Tax benefits: Hire purchases can offer tax benefits for some businesses, as the interest payments may be tax-deductible.

3. Builds credit history: Hire purchase can be a good way to build your credit history, as it demonstrates your ability to manage a loan.

4. Repayment Flexibility: Hire purchase agreements often allow for flexible repayment options, such as choosing the length of the repayment term or making additional payments.

5. Ownership at the end of the term: Once you have paid off the hire purchase agreement, you will own the asset.