Financing Leasing versus Hire Purchase

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Mohammad Hamdan
Russian Federation
🔥NEW At first glance, financial leasing and hire purchase contracts give you (as a manager in a company, businessman or industrial) the impression that they are very similar or even the same; that they are two different names for one contract and have the same effects and the same results. Perhaps this seems so because in both methods "rent" is existent as a main component of the relationship between the parties. However, on a legal and even practical level, that is incorrect. Because the contractual intention in both contracts is completely different, as the intention of the owner in the HIRE PURCHASE contract is directed towards selling the asset; this sale will be completed when the hirer pays the last rent payment in the contract. Whereas the owner's intention in the FINANCIAL LEASING contract is directed towards financing the lessee, who also has "the right of choice" to purchase the asset if she/he expresses her/his desire to do so at a specific price, which takes into account the pe (...) Read more? Sign up for free

  Gandhi Heryanto
Management Consultant, Indonesia

Hire Purchase versus Bank Loan

Another alternative in terms of asset procurement (...)


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