A deposit is a sum of money paid upfront for various purposes, such as reserving a purchase, saving in a bank, or as a security in trading.
A finance house is an organization, often owned by commercial banks, that provides finance for hire-purchase or leasing agreements. These institutions play a pivotal role in consumer finance, enabling consumers to purchase expensive items through structured agreements while earning profits from the interest rate differential.
Hire Purchase (HP) is a method for buying goods in which the purchaser takes possession upon an initial installment payment and gains ownership once all agreed subsequent payments are made.
An instalment sale in the USA allows businesses and individuals to acquire high-value goods over time by making regular payments. This is similar to the UK's hire purchase system.
