Understand the unit economics
A hire purchase operation acquires or supplies an asset, collects an initial deposit and recovers the financed balance through scheduled installments. The model must cover the asset cost, cost of funds, servicing, defaults, recovery, overhead and a sustainable margin.
Hire purchase, finance leasing and finance business are not interchangeable. CBSL regulates licensed finance companies and specialised leasing companies under applicable legislation. Have a Sri Lankan adviser review your proposed agreements, disclosures, repossession process, taxes and licensing position before launch.
Official references: CBSL finance and leasing supervision and CBSL legislative enactments.
Build the model in the right order
- Select assets and customers.Define eligible products, suppliers, customer checks, useful life and resale risk.
- Set transparent commercial terms.Document cash price, deposit, financed balance, finance charge, term, installment and permitted fees.
- Standardise agreements.Use professionally reviewed contracts, disclosures, receipts, settlement and recovery procedures.
- Control inventory and cash.Reconcile supplier invoices, asset identifiers, deposits, installments and collector balances.
- Monitor portfolio quality.Review arrears ageing, roll rates, recoveries, settlements, write-offs and profitability by product and branch.
Hire purchase calculator
Use this planning tool to test a scenario. Results are estimates and exclude taxes, statutory charges, late fees, declining-balance effects and business-specific costs.
Indicative flat-rate calculation only. Validate pricing, affordability, disclosures and regulatory treatment independently.
Controls that save time as the portfolio grows
One customer record
Keep identification, contacts, accounts, documents and communication history connected.
Schedule accuracy
Generate consistent installments and retain the contractual schedule alongside actual payments.
Receipt trail
Record who collected what, when and against which account, then reconcile daily.
Early arrears action
Use ageing and due lists to prioritise follow-up before missed payments compound.
Move from planning to controlled operations
LendFlow helps hire purchase teams manage customers, agreements, assets, installments, balances and settlements in one traceable workflow. It supports the operation; it does not provide a licence or replace professional compliance advice.
Frequently asked questions
How does a hire purchase model earn revenue?
A business generally recovers the financed balance through scheduled installments plus an agreed finance charge, while controlling acquisition, servicing, arrears and recovery costs.
What should a hire purchase system track?
Track customers, assets, agreements, deposits, installment schedules, receipts, outstanding balances, arrears, settlements and an audit history.
Is the calculator a customer quotation?
No. It is an indicative planning tool. Contract terms, statutory disclosures, taxes, fees and applicable regulation require separate professional review.