The term `Lease Purchase` was introduced to describe a Hire Purchase or Conditional Sale contract, but with a payment structure that is similar to a lease, where instead of a deposit being paid, a customer may be required to make `advance payments`.
This means regular repayments are made ‘up front' by the customer.
Lease Purchase agreements are purchase agreements that can be regulated, exempt or unregulated. This all depends on the type of customer, the amount borrowed and the purpose of the lending.