April, 2018
12 April
UNDERSTAND YOUR RISKS BETTER (PART 1)
In leasing, lessors (owner of an asset) are faced with two major types of risks: credit and asset risks. Before you as lessors commit into any lease transaction, it is imperative to conduct a proper analysis of the lessee (user of an asset) on these two types of risk. Lessor. having assessed the credit…
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9 April
TIPS ON RESIDUAL VALUATION
In leasing, a key activity that must not be taken lightly is how to value your residuals. (Residual value is the value of the leased asset at the end of the lease transaction). Residual value analysis is a comprehensive process aimed at determining the future value of equipment at specified times during the lease…
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8 April
SUMMARY OF PROCEDURES IN BOOKING OF LEASE
What are the steps involved in the booking of lease? It has become necessary to detail the steps involved in the booking of leases as guide to lessors (owners of asset) who may not have had any experience in the business. In doing so, however, this rely on the approach used by a major…
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7 April
OVERCOMING FUNDING CHALLENGES IN LEASING
Players in the leasing industry has been facing the challenge of funding for lease transactions for over the years. Despite the fact that leasing has been contributing greatly to the Nigerian economy and creating wealth, there still exists this challenge. This particular challenge has hindered its capacity to effectively participate in big-ticket leases, thereby…
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6 April
MANAGING YOUR ASSET IS KEY (cont.)
Usage Terms and Conditions: Another simple technique of asset management is to simply specify the usage terms and conditions of equipment in the main lease agreement. For instance, it may be stipulated that the equipment should be operated for a specified number of hours per day and that only certain category of persons should…
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5 April
MANAGING YOUR ASSET IS KEY
Apart from checking on the standing of the lessee (user of asset), the lessor (owner of asset) has the responsibility of ensuring that the asset under lease is well managed. This is fundamental to the overall achievement of the lessor’s business objective, because the lessee will only be motivated to pay if the asset…
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2 April
DO YOU KNOW THE CURRENT MARKET FOCUS IN LEASING BUSINESS?
In the recent times in the leasing business, there is a gradual shift from finance leasing to operating leasing in Nigeria, partly as a strategy to mitigate default risk and in response to market dictates especially to meet the demands of corporate clients. This was revealed through a recent survey conducted by the Equipment…
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1 April
HOW TO IMPROVE LEASING BUSINESS CLIENTELE BASE
Having a good customer base is very important to all business transactions. Changing a prospective lessee to a customer and retaining him requires a whole lot of systematic approach, appropriate intelligent gathering, planned programme of actions on your part as a lessor (owner of an asset). A specific time should be set aside each…
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28 March
HOW TO MANAGE YOUR DRIVERS IN OPERATING LEASE
The success of operating leases (leases that the lessees do not intend to own the asset at the end of the lease) where vehicles are the assets involved, depends on variety of factors and most essentially the driver. Therefore it is important to fully understand how to manage drivers in operating lease business and…
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27 March
HOW TO INCREASE YOUR YIELD AND PROTECT YOUR PORTFOLIO THROUGH ADVANCE RENTALS
A lessor (owner of asset) can take a number of the rentals at the beginning of the lease and the others taken in arrears e.g. in a 12 month lease, the lessor can take 2 month rentals in advance and the remaining 10 rentals in arrears. One of the implications of this is that,…
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