ADVANTAGES AND DISADVANTAGES MORTGAGE Advantages: You get to acquire a property without saving the purchase price.

You get an income tax deduction in the US. You build credit history. You get to hold what is historically an appreciating asset without fully paying for it. Disadvantages: You pay intesest charges, discount points , taxes and other fees. The tax deduction is only about 25% costs above. Without faithful payment you can be evicted. The mortgage holder controls various facets about the house and can prohibit you from selling small parcels or doing modifications to the structure and the like. http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_mortgage

Tax Break
Your mortgage may be the biggest tax break available to you. You can generally deduct any interest you pay on your mortgage loan, which is especially important during the early years of the loan, when most of your monthly payment consists of interest. If you purchase points, which is the process of paying an additional percentage of your loan up front in exchange for a lower interest rate, you can also deduct their purchase price.

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HIRE PURCHASES The advantages and/or disadvantages of hire purchase can be summed up as relative to the length of time you need to have the repayment done. An advantage is that a hire purchase is a medium term funding facility that cannot be withdrawn if the business makes the payments on time. One disadvantage is that a hire purchase is not easily removed. The penalties for early removal may far outweigh the benefits of the purchase. http://www.reference.com/motif/business/advantages-disadvantages-of-hire-purchase
Choose your asset We can provide Hire-Purchase solutions for a large variety of equipment, such as: vehicles, on-site equipment, agricultural and forestry machinery, generators, forklift trucks, IT equipment and photocopiers. Flexibility We will offer you a Hire-Purchase that is suited to your specific needs. We offer flexible repayment options that suit you or your companys needs best (weekly, monthly, seasonal etc.). The tenor of a Hire-Purchase is typically between 12-72 months. No downpayment required We can provide financing at 100% of the value of the asset. In other words, a down payment is often not required. Leasing offers you an instrument to advance your business, without having to make a large investment. Ownership At the end of the lease tenor, you will automatically become the owner of the asset. Tax benefits ALIOS Finance can inform and advise you on tax benefits that are applicable to you or your company.

http://www.alios-finance.com/site/en/hirepurchase.99.html
the advantages of hire purchase :

can save the business money you can set your own rates the disadvantages are : many people may not want to hire but to buy instead http://wiki.answers.com/Q/Advantages_and_disadvantages_of_hire_purchase
The Advantages of Hire Purchase Agreements to the consumers Spread the cost of finance. Whilst choosing to pay in cash is preferable, this might not be possible for consumer on a tight budget. A hire purchase agreement allows a consumer to make monthly repayments over a pre-specified period of time; Interest-free credit. Some merchants offer customers the opportunity to pay for goods and services on interest free credit. This is particularly common when making a new car purchase or on white goods during an economic downturn; Higher acceptance rates. The rate of acceptance on hire purchase agreements is higher than other forms of unsecured borrowing because the lenders have collateral; Sales. A hire purchase agreement allows a consumer to purchase sale items when they aren't in a position to pay in cash. The discounts secured will save many familiesmoney; Debt solutions. Consumers that buy on credit can pursue a debt solution, such as adebt management plan, should they experience money problems further down the line. The Disadvantages of Hire Purchase Agreements to the consumers Personal debt. A hire purchase agreement is yet another form of personal debt it is monthly repayment commitment that needs to be paid each month; Final payment. A consumer doesn't have legitimate title to the goods until the final monthly repayment has been made; Bad credit. All hire purchase agreements will involve a credit check. Consumers that have a bad credit rating will either be turned down or will be asked to pay a high interest rate; Creditor harassment. Opting to buy on credit can create money problems should a family experience a change of personal circumstances; Repossession rights. A seller is entitled to 'snatch back' any goods when less than a third of the amount has been paid back. Should more than a third of the amount have been paid back, the seller will need a court order or for the buyer to return the item voluntarily.

TRADE CREDIT Advantages of Trade credit Reduced capital requirements, this means that if a new business setting up hastrade credit, they will obviously require less money in capital to start up the business. This is a major advantage to someone who has very little money but has a good idea about starting a new business. Trade credit with improve the cash flows and therefore provide smoother operation for the business Businesses can buy now and pay later which means even if they don't have the money at first they can purchase items, sell them as a business and then make the payments at the end of the month when the

products have been sold and a profit has been made. Businesses can look to grow without having to worry of needing to make immediate payments which may set them back. With trade credit, the business can focus on other areas such as sales, marketingand research rather than worrying about meeting targets just to have enough money to pay the bills. Disadvantages of Trade credit If repayments are not made by certain deadlines, the business will receive a poor credit history which will be a big blow to any business as they will not trusted in the future if they require any loans, trade credit, credit cards or leasing. Only companies with a good credit history will get trade credit and these can often be hard to build up, especially for new businesses.

You can buy the stock and pay later when you have sold the stock and made enough money to pay them back Eases the cash flow as you can pay after 28-30 days Disadvantages

If you do not pay them back on time you can build up a bad credit history Only companies with good credit history can be accepted the trade credit grant http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_of_trade_credit
Trade credit is offered by many suppliers to trade channel buyers to encourage more frequent and higher volume purchases. Smaller companies with limited cash on hand often rely on trade credit to make inventory purchases on a regular basis. Trade credit has benefits to both the buyer and seller, but it also has some disadvantages. Sponsored Link

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More Sales
From the perspective of the creditor, or supplier, trade credit should induce more sales over time by allowing customers to make purchases without immediate cash. This flexibility in purchasing methods also encourages customers to make larger purchases when prices are right than they might if they had to pay cash upfront. Along with higher sales volume, trade credit often produces interest fees and late payment fees for creditors, which increases revenue.

No Cash
From the resellers perspective, the ability to buy on credit makes it possible to buy needed inventory even when cash balances are low. Having cash to pay off long-term debt and other more urgent and immediate expenses is critical. The ability to delay cash requirements for supplies and inventory helps preserve cash

for these purposes. Buyers may want to ramp up the volume of purchases at a time when demand is higher, and a trade account makes it more feasible to do so.

Bad Debt
The potential risk to the supplier when offering trade credit is bad debt. If buyers do not pay off their debt, and in a timely manner, it has negative cash effects on the supplier. Companies eventually have to write off unpaid accounts as bad debt, which lowers their profits. Accounts that remain unpaid for a long period of time still have negative effects, though. This means the supplier has to wait to collect cash which it needs to pay its own bills.

High Costs
If buyers are not careful in the way they use trade credit, they can end up paying much higher costs for inventory. Many companies offer a 2-percent discount if you pay within 10 days, but payments received after 30 days usually include late-payment fees and interest that begins accruing. In its overview of trade credit, "Entrepreneur" notes that purchases on account can cost between 12 to 24 percent extra in interest fees if the business does not pay within the typical 30-day net payment term.

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BANK LOAN

Advantages:
The main advantages claimed for long term loans are as follows: (i) Long term loan provides an opportunity to the state to under-take large projects like constructions of canals, hydro-electric projects, buildings, highways, hospitals, etc. As these loans are not to be repaid at a short notice, so the government safely spends them on productive projects. (ii) Long term loans are also unavoidable for preparing and fighting of a modern war. (iii) The long term loans provide a very good opportunity for the commercial banks and the insurance companies to invest their surplus funds. As the rate of interest in long term loan is higher than on the short-term loan, therefore, they earn large profits. (iv) Another merit of the long term loan is that it can be repaid by the government by the time which is favorable or convenient to it. It can also convert these loans at a lower rate of interest later on. (v) If at any time the rate of interest is low, the government can contract a long-term loan and

with the amount thus raised, some public works programs can be undertaken at a lesser cost.

Disadvantages/Demerits of Long Term Loans:

(i) Long term loans are mostly incurred for financing war or for undertaking big public works program. If a country has to meet an external aggression, these long-term loans are unavoidable and so are justified. But if it wages a war to expand its territory, then they cannot be justified because there is very likelihood' that the waging country may suffer losses. In such cases, the present generation as well as the posterity suffers. (ii) In times of an emergency, the government has to undertake long-term .loans even though they are at a higher rate of interest. The burden of the public debt is thus too much increased. (iii) If a government embarks upon a big project by having a recourse to long term borrowing and miscarries it, then the future generation is burdened with a losing concern. (iv) If the government has accumulated large capital through long-term loans and no real assets exists to pay off such debts, then it resorts to excessive taxation. Heavy taxation reduces the profits of the businessmen and discourages the new industrialists to take up new enterprises. We cannot deny this fact that long-term loans have some disadvantages but when an emergency arises, they become absolutely unavoidable. The government should, however, see that they should be incurred mostly on those projects which give return so that the present generation as well as the posterity benefit from them. http://wiki.answers.com/Q/Advantages_and_disadvantages_of_long_term_bank_loan

Purchasing Power
Because a long-term loan's repayment period spans a greater period of time than a short-term loan's, you can borrow a greater amount. Borrowing more money from the bank gives you far greater immediate purchasing power than borrowing a small amount and saving up the remainder required to make a large purchase. This is particularly beneficial for businesses that need an influx of cash quickly to stay afloat.

Qualification Requirements
Long-term bank loans require applicants to meet strict financial and credit criteria that are not always necessary with short-term loans. The application process is often lengthy and the applicant must prove his ability to repay the loan through thorough financial documentation before the bank will consider approving the application. Depending on the type of long-term loan an individual or business applies for, the bank may require collateral in the form of a security interest in the applicant's assets. Should the applicant fail to repay the loan, the bank may then seize the asset by calling due its security interest.

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Lower Payments
A long-term bank loan provides an applicant with lower payments than a short-term bank loan for the same amount. Thus, while the applicant could feasibly pay off her liability more quickly with a short-term loan, the lower payments she enjoys via the long-term loan make incorporating loan payments into her budget an easier task. Barring interest charges, a short-term bank loan of 6,500 repaid over a six-month period leaves the borrower with payments totalling over 975 a month. A four-year bank loan for the same amount, also barring interest, leaves the borrower with more manageable payments of approximately 130 a month.

Interest Charges
Interest rates vary depending on the type of loan the applicant applies for and whether the applicant meets the bank's qualifications for the best rates. What does not vary, however, is the fact that the longer the loan term, the more interest the borrower pays over the life of the loan. In general, interest rates are slightly higher for long-term bank loans than for short-term bank loans. Borrowers can often reduce their interest rates by providing the bank with collateral. This reduces the bank's risk of loss and allows the borrower to take advantage of lower rates. http://www.ehow.co.uk/info_8196955_longterm-bank-loans-advantages-disadvantages.html