OVERCOMING COMMON OBJECTIONS IN LEASING
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…
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LEASE AND OTHER EQUIPMENT FINANCING OPTIONS
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…
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HOW TO TREAT TAX AS A LESSEE (USER OF ASSET)
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…
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MAJOR GUIDES TO PROFITABLE LEASE STRUCTURING
Structuring a lease involves determining the periodic lease payment based on the terms of the lease, in such a way as to cover all costs associated with the lease investment and the target rate of return, while remaining competitive in the market. Our focus is to consider the various…
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FG SEEKS ELAN INTERVENTION TO DEVELOP THE MINING SECTOR
FG SEEKS ELAN INTERVENTION TO DEVELOP THE MINING SECTOR The Federal Government has recently contacted Equipment Leasing Association of Nigeria (ELAN), to partner with it on the implementation of Nigeria’s national economic strategic plan – the Economic Recovery and Growth Plan (ERGP). Part of this plan is the focus…
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ELAN MOBILISES SUPPORT FOR HEALTHCARE DEVELOPMENT
ELAN MOBILISES SUPPORT FOR HEALTHCARE DEVELOPMENT In its quest to further develop the healthcare sector in Nigeria as well as enhance value propositions, ELAN had entered into partnership with Swiss Biostadt Limited, one of its members and a renowned vendor of medical equipment, to promote and facilitate investment under…
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BENEFITS OF VENDOR LEASING ARRANGEMENT
The term vendor leasing refers to any programme in which an equipment manufacturer, distributor, dealer or makes use of leasing as a means of selling its products. Vendor leasing, sometimes called “Sales aid Leasing” can be divided into two forms: i. Captive lessors – is when the manufacturer/dealer decides to…
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WHY WOULD YOU INVEST IN LEASING BUSINESS?
Just like there are advantages of leasing to a lessee (the user of an asset), so are there benefits of leasing to a lessor (owner of an asset). The factors that encourage a lessor to provide leasing facilities include: Leasing widens the market for a manufacturer/dealer of equipment. Thus,…
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6 WAYS TO MITIGATE RISKS IN LEASING
Lease structuring is done after the lessor has established the risk profile of a particular transaction. Sometimes the lessor might not be sufficiently certain that the lessee will meet his rentals as they fall due. To overcome this uncertainty, it may be necessary to require some form of credit…
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TIPS ON ASSET MANAGEMENT (Continued)
Asset Register: maintenance of an up to date register of leased assets is very vital to the management of the lease portfolio. The asset register is better maintained by a computer program and should contain information such as name of the leased asset, serial number, tag number, location of…
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