How to use hire purchase as a source of passive income

[Augusta]

Hire purchase is giving out what a person has bought before the completion of the payment but the snag here is that if the payment isn't complete as at when due the item becomes the seller own and no longer for the hirer.

A lot of people are making passive income with this style of business transaction. This is how the business style works.

You can buy a machine maybe like a grinding machine that is quite expensive and give it out to a hirer to use while paying you some amount of money weekly. You would give the amount to be paid with your profit inclusive.

This means that you would also make money off it passively since the hirer will be paying you profit and you don't have to do anything else. You can continue the. cycle by putting aside your profit and using your capital from the previous transaction to buy another one for another person and the chain of Passive income continues.

 

[Suba]

After reading your thread, I conclude, Hire purchase means that rental purchases are made in installments within a certain period of time, because if the payment is not completed by the due date, it will become the property of the seller. Of course it will be difficult to determine the cost of installments/leasing, because if the amount of the installment is the same or larger than usual, then we are better off buying from a dealer by installments or credit. A buyer / renter will certainly compare prices, for example an electric meat grinder for $ 400, how much do I have to pay the hire purchase price every month. because currently there are many marketplaces that offer easy installment or pay later purchases. and the goods will be ours even though the maturity has passed, only subject to fines and interest.

 

[saoussen5765]

@Suba is there any possibility of luck of funds in doing such practice or scam or roberry because I see high risk on such kind of transactions for giving property before being fully paid from the final client unless it is done by getting a bank loan then debt will be between purchaser and bank and you get your full payment?

 

[Etini]

Hire purchase favors the leaser in certain circumstances. But in some circumstances, it seriously does not favor the leaser but the person who leases the product from the leaser. It is a risky business cos the agreement can still be breached and there is nothing much you can do about it.

My uncle bought a car and gave it out for hire purchase. This guy that took the car on hire purchase refused to remit, always giving excuses about one repair or the other. He became incommunicado. Nobody knew his whereabouts. My uncle had to go wait at a popular bus stop almost for a whole day before they saw him offload passengers with the car.

He was arrested though and his family paid off the money. What am I saying in essence? Hire purchase arrangements go sour easily against the person who leases the product out. I don't advocate for it.