• When you lease, cash is not tied up in equipment. Instead, money is available for opportunities such as marketing, working capital, investment or seasonal cash flow needs.
• You save 30% corporate tax because of leasing as the lease is an expense against your operating profit.
• You concentrate on the core business of your organization.
• No heavy assets on your balance sheet
• Assets can be bundled with auxiliary services such as insurance, service, fuel, software thus focus on use of asset as opposed to raising working capital after purchase of asset.

In the lease program we do not offer interest rates but charge a rental amount that is determined by the nature of the asset, tenure of the lease, cost of capital to purchase the assets and residual value where the facility is an operating lease. The information we would require to enable us give the customer a lease rental would be type of asset (model, supplier etc), cost of the asset, desired lease tenor and expected action at the end of the lease.

You shall then have three (3) option upon giving written notice:

No, the lease is non-cancellable. However we may offer you an early termination option where you will be required to pay the present value of the outstanding rentals and return the equipment when a minimum tenor of 12 months is remaining on your contract.

• Last 2 years audited accounts and latest management accounts (for requests above 3 million)
• Latest management accounts (for requests above 3 million)
• 12 months bank statements and/or mpesa from all your active accounts
• Cash flow projections for investment on new projects
• Copy of certificate of incorporation, company pin, Memos and articles of association and directors pin and ID’s.
• Comprehensive company profile with bios of directors and key management staff
• Copy of trading and/or sector specific license
• Aged debtors and creditors listing for the last 6 months (for requests above 3 million or tied to projects)
• Latest CR12
• Latest tax compliance certificate

An operating lease is a contract where the lessee (user of the asset) pays for partial cost of the asset while a finance lease is a lease where the lessee pays for the full cost of the asset over a given period of time. In the finance lease contract, the intention of the lessee is to retain ownership at the end of the lease term.

When evaluating the lease rentals from an absolute basis this may appear the case. However as lessors, we are providing an asset with today’s money upfront but to be repaid with future cash flows and so the time value of money has to be considered and which will always show the lease rentals are lower than the cost of the asset.

The client signs a lease agreement and rental schedules. The Master Lease Agreement covers all the leases of all the assets that the client will lease and a Rental Schedule for each asset the client leases. The documents are to be executed in doubles.

There is no security required for in the lease since the assets remain fully owned by the lessor. However we may ask for personal guarantees on the lease payments from directors who are also shareholders in the business.

This depends with the type of equipment being leased and its life span. The operating lease covers a shorter term than the useful life of the asset so the number of years must not be equal to or exceed the useful life of the asset. The minimum lease tenor is however 12 months. Where equipment is required for retention under a shorter period we can offer you our differed credit facility.

We charge a lease documentation fee that is a percentage (3%) of the approved lease facility and a refundable rental deposit equivalent to 2 months rentals, which we hold for the full duration of the lease.