Hire Purchase is a type of financing arrangement where a business can acquire assets by making regular payments over time. The business hires the asset while making payments, and ownership is transferred to the business once the final payment is made.

Hire Purchase is ideal for businesses that need to acquire expensive equipment, vehicles, or machinery but want to spread the cost over time rather than paying upfront. It’s particularly beneficial for businesses in industries like manufacturing, construction, transportation, and agriculture, where significant capital investments in equipment are often required.