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…
Read MoreFG 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…
Read MoreELAN 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…
Read MoreBENEFITS 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…
Read MoreWHY 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,…
Read More6 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…
Read MoreTIPS 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…
Read MoreTIPS ON ASSET MANAGEMENT
Apart from checking the standing of the lessee, you also have the responsibility of ensuring that the asset under lease is well managed. This is fundamental to the overall achievement of your business objective, because the lessee will only be motivated to pay if the asset under lease is…
Read MoreTECHNIQUES TO HELP STRUCTURE OFF BALANCE SHEET FINANCING
In the course of your operations, if a lessee insists on off balance sheet financing, you must first of all ensure that the lease does not meet any of the 5 criteria including: i. Automatic ownership transfer ii. Bargain purchase option iii. Lease term equal to or greater that…
Read MoreSTEPS INVOLVED IN MONITORING YOUR LEASES
When servicing your customers, there are series of activities that you must perform to ensure that you are monitoring your investments. From the beginning of the lease to termination, these activities must be well coordinated, to ensure that the transaction is managed efficiently and effectively in line with the…
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