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 an “Equipment Leasing Scheme”. This…
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 establish a wholly –owned subsidiary…
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, a manufacturer/dealer can offer lease…
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 enhancement. However, credit enhancement should…
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 the asset, name of lessee,…
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 in existence and functional. The…
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 75% of the asset’s economic…
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 agreements reached between the parties….
Read MoreHOW TO COUNTER COMMON OBJECTIONS IN LEASING
It is not uncommon in the course of marketing your leasing business, whereby you come across stiff objections from prospective lessees, either real or perceived. This equally applies to all types of business. More importantly, you should know how to counter each objection keeping in mind that real objections do not really have a…
Read MoreHOW EQUITY CONTRIBUTION CAN IMPLICATE YOUR BUSINESS
It has become imperative to bring to the fur the negative impact of equity contributions in leasing transactions and to alert you of its consequences on your investment. Perhaps to have the commitment of the customer, many lessors ask for equity contribution from the customer, while this is not illegal, it connotes a different…
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