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VARIOUS ASSETS THAT YOU CAN LEASE
April 14, 2018
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As a lessee, it is important to understand that leasing can help you acquire any type of asset you desire. Any asset, cutting across the various sectors of the economy can be gotten through leasing. Whether you desire assets for business or comfort can be acquired through leasing with ease, convenience and flexible payment pattern. See some various aspects: ¨ Transportation equipment including vehicles, trucks, tractors, heavy duty vehicles, Garbage trucks, Tankers, Trailers, Buses etc ¨ Agriculture equipment including Ploughing machine,…

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UNDERSTAND YOUR RISKS BETTER (PART II)
April 13, 2018
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The assessment of the various risks confronted by a lessor (owner of an asset) continues with these: ADDITIONAL RISK ELEMENTS Several other risks may impact the credit decision but may not be apparent at the time of initial risk assessment. These risks are equally important and need to be fully considered. i. Funding Funding mismatch is a major risk that may affect the lessor’s operation. A lease may be financed on a fixed or variable rate basis. It is…

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UNDERSTAND YOUR RISKS BETTER (PART 1)
April 12, 2018
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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 worthiness of the lessee, it is equally imperative to assess the other risks, which may confront the lessor. These include: (1)       OWNERSHIP RISK The lessor…

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TIPS ON RESIDUAL VALUATION
April 9, 2018
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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 term and at expiration. The issue of residual value is very crucial in leasing. In operating lease (this is lease whose intention is not to…

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SUMMARY OF PROCEDURES IN BOOKING OF LEASE
April 8, 2018
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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 bank and lessor in Nigeria. Before a lease is booked, the following minimum steps must be taken by the potential lessor: Request for a lease…

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OVERCOMING FUNDING CHALLENGES IN LEASING
April 7, 2018
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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 limiting players in the domestic leasing terrain to the provision of supporting equipment such as vehicles, generators, computers, air-conditions etc, while reducing its capacity to…

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MANAGING YOUR ASSET IS KEY (cont.)
April 6, 2018
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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 be allowed to operate the equipment. It should be noted that many lessees, especially in the oil industry prefer operating leases since they expect to…

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MANAGING YOUR ASSET IS KEY
April 5, 2018
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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 under lease is in existence and functional. The fact that the lessor has little or no control on the usage of the equipment makes this…

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DO YOU KNOW THE CURRENT MARKET FOCUS IN LEASING BUSINESS?
April 2, 2018
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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 Leasing Association of Nigeria (ELAN), and also that operating lease is growing at a faster rate. Operating Leases (leases intended not to own the asset…

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HOW TO IMPROVE LEASING BUSINESS CLIENTELE BASE
April 1, 2018
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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 week for prospecting with a catchy corporate message on why leasing is the most appropriate form of financing for the prospective lessee. It is important…

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