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DO YOU DESIRE SUCCESS IN YOUR LEASING BUSINESS?
March 23, 2018
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| Best Practices

To succeed in leasing business requires consistent search for skills and techniques required for success. Succeeding with leasing provides the operators with template for lease practice and is designed to enhance professional development of lease practitioners. There is need for a broad-based education in leasing for all personnel, regardless of level of expertise or function, intended to facilitate better understanding of the industry and fundamental principles of leasing that are critical not only to the success of the organisation,…

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14 GUIDES TO SUCCESSFUL FLEET MANAGEMENT OPERATIONS
March 22, 2018
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The fleet business will succeed when the following guiding principles are put in place: Fleet Management companies must have a clear cut Fleet Management Policy. This function must not be outsourced. It is the rules and regulations that guide fleet operations. The policy will provide clear directions in terms of fleet management, fleet management responsibilities, mode of financing, direction on maintenance, driver management and self drive policy, insurance, de-fleeting and re-fleeting. It will facilitate and encourage accountability, monitoring of…

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ELAN JOINS LAGOS CHAMBER OF COMMERCE AND INDUSTRY (LCCI)
March 21, 2018
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| Latest News

ELAN JOINS LAGOS CHAMBER OF COMMERCE AND INDUSTRY (LCCI) In pursuit of its objective of promoting the business of leasing in Nigeria, Equipment Leasing Association of Nigeria (ELAN) has continued to strengthen partnership with the organised private sector and recently joined Lagos Chamber of Commerce and Industry (LCCI). This is to further the Association’s value proposition, increase robust business networking/references and enhance the visibility of the leasing industry. It is our mandate to continue to make equipment leasing the…

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TAX IMPLICATIONS OF LEASING IN NIGERIA
March 21, 2018
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| Tax

The Federal Inland Revenue Service (FIRS) adopted the treatment of leasing by the International Accounting Standards on Leases SAS 11, and accordingly classifies leases for tax purposes as either finance or operating leases, together with other variants of leasing such as leveraged leases, sale and lease back and sale – type lease. At this point, it is important to explain some general principles as background to the specific tax issues in leasing to be discussed. Capital Allowance granted in…

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UNDERSTANDING KEY ISSUES IN LEASE CREDIT ASSESSMENT
March 20, 2018
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| Lease Advice

As a lessor (the owner of the asset), leasing business can be sourced through the  following are the ways: By direct marketing of the Lessor’s services; the Lessor can approach a potential Lessee (the customer that needs the asset) for business; The Lessee initiating the approach to a Lessor for lease facility; Through sales-aid leasing whereby the supplier of equipment makes initial enquiries, and Through financial intermediaries e.g. brokers, consultants  acting on behalf of either the Lessor (owner of…

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SPOTING THE RED FLAGS IN A LESSEE’S PROPOSAL FOR A LEASE
March 16, 2018
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| Best Practices

There are several factors that portend danger in the performance of a firm. If a  potential corporate lessee comes up with a proposal for a lease transaction, it is  important to properly analyse the books and ensure the following signs are not available before venturing into such business.  These can make the difference between success and failure of a lease transaction.  Some of these factors include: Overtrading – which is a situation whereby a firm takes on more business…

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MAJOR ISSUES THAT AFFECT LEASE VERSUS BUY DECISIONS
March 15, 2018
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| Lease Advice

There are some factors and variables, both qualitative and quantitative, that affects a person or firm’s decision either to buy or lease an asset. It is imperative as a lessee (user of an asset) to critically analyse these issues to arrive at a better decision. The following are some of the qualitative factors that imply an obvious advantage of leasing over buying an asset. (1)       Flexibility and convenience:  due to the nature of leasing, lessors (owner of an asset)…

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OVERCOMING COMMON OBJECTIONS IN LEASING
March 13, 2018
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| Best Practices

In other to succeed as a lessor (owner of asset), it is important to identify objections to leasing and find a way to overcome them to win the deal. Some of the most common objections include: Leasing is more expensive The person or entity wants to acquire through cash Leasing is complex The person or entity believes in ownership Non cancelable leases are a concern The person or entity is seeking tax benefits The following suggestions could help in…

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LEASE AND OTHER EQUIPMENT FINANCING OPTIONS
March 12, 2018
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| Lease Advice

Leasing is similar to other forms of equipment financing. However, it has distinct nature from the other methods. i. Hire Purchase – the assets are delivered to a person who agrees to make periodical payments by way of hire with an option to purchase. There are two transactions i.e. Hire and purchase combined into one. A lease is technically a hire contract without more. So when a lease contract gives the lessee an option to purchase, it takes the transaction…

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HOW TO TREAT TAX AS A LESSEE (USER OF ASSET)
March 9, 2018
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| Tax

All lessees, especially a business entity, must treat their taxes appropriately in its books, and this should comply with the provisions of the latest circular “Guidelines on Tax Implications of Leasing” issued by the in Federal Inland Revenue Services (FIRS) in April 2010. The following specifies how  taxes should be treated by a lessee (user of asset): Finance Lease Treatment for Lessee The Companies Income Tax Act (CIT) regards the interest portion of the periodic lease rental and other…

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