Leasing is a powerful product to provide Small and Medium Enterprises (SMEs) with much needed term-financing to invest in assets. It enables SMEs to leverage an initial cash deposit with the inherent value of the asset being purchased acting as collateral
Leasing is a form of access to finance, and is a contract between two parties where one party (the lessor) provides an asset for use to another party (the lessee) for specific period of time in return for specified payments.
The key benefits of leasing include:
• Providing reduction of tax liabilities. Lease payments are fully tax deductible from a lessee’s profit before taxes figures. It allows lessees to accelerate their depreciation.
• Improving the financial ratios through elimination of the leased assets and obligations from the lessee’s financial statements.
• Improving the cash flow of the lessee as lease payments can be tailored to match the lessee’s cash flow pattern. Thus, clients can pay for the asset while accommodating grace periods.
• Provide a faster, more convenient and less expensive financing tool. No mortgage expenses, stamp duty or other hidden costs.
We are involved in the arranging financial leasing where legal ownership remains with the lessor, whilst the lessee (client) enjoys the right to usage of the asset.
We can arrange leasing for a wide range of assets such as commercial vehicles; machinery and equipment; IT assets (hardware and software) and real estate