The Effect of Equity Contribution!
Do you know that equity contribution connotes ownership. If I have N1 share in any company, it means I am part owner of that company and this negates the true essence of leasing that recognises the lessor’s full ownership of the leased asset. A key solution is to take advance rentals. Advance Rentals have two implications: to reduce risks and increase yield. For instance if you take 2 advance rentals for a 12- month lease, it means…