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FACTORS TO CONSIDER BEFORE FINANCING AN ASSET
February 23, 2018
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| Lease Advice

As a lessor, there are certain factors you need to put into consideration before you finance any asset. This will enable you determine whether an asset is worth financing or not and thereby enhance your profitability. They include: What is the purpose for the lease? Does the lessee have sufficient cash flow to make payment? Does the lessee have sufficient capital to provide a financial cushion in times of stress? Does the owner provide support for the company and…

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OPERATING LEASE: THE FUTURE OF LEASING BUSINESS
February 22, 2018
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| Lease Types

In the recent times, it is imperative to fully understand as a lessor that the business of leasing has tilted towards operating leases, due mainly to the operators’ response to market changes. This arises from the dictates of market by corporates willing to divest from other ancillary duties thereby contracting it out to firms that specialises in such duties, this gives them the priviledge to focus squarely on their core business. Equipment Leasing Act (ELA 2015) Definition of Operating…

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10 ENDS OF LEASE STRATEGY
February 19, 2018
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| Lease Advice

Generally, the stronger your position as a lessor, the stronger your stands in the negotiation process, Amembal&Halladay (1995) gives the following 10 key steps to developing a successful end-of-lease strategy, maintain positive environment during negotiation process and promote a favourable outcome: You should always look for win-win situations. If the lessee has the perception that you have made certain concessions, it will feel more satisfied with the final outcome. You should always start negotiations by asking for more than…

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REQUIREMENTS FOR LEASE AGREEMENT
February 18, 2018
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| Industry Laws

FINANCE LEASE i. Statement to the effect that the lease is Finance  Lease ii. Description of the asset to be leased iii. Total rental or instalmental lease rental payable by the lessee iv. The date which rental is payable v. The estimated price of the equipment vi. Statement as to the knowledge of the supplier of the asset that it is for a lease transaction. vii. A clause affirming the title of the lessors viii. On termination by expiry…

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PROTECTIVE MECHANISM UNDER EQUIPMENT LEASING ACT
February 17, 2018
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| Lease Advice

  The Equipment Leasing Act 2015 provides that: i. The lessee shall not remove the leased asset from Nigeria without the written consent of the lessor ii. The lessee shall be liable for repairs to damage caused by his act, agent or servant or any third party to a leased equipment (s, 24) iii. Lessor is generally not liable for any defect in fitness for purpose of leased asset, except the lessee suffers loss as a result of reliance…

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MARKETING TIPS FOR LESSORS
February 16, 2018
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| Lease Marketing

  Sales promotion and prospecting Who are your prospects? i. Every vendor ii. Every vendor sale person iii. Manufacturer iv. Every retailer, professionals, Service firms v. Every lessee active or inactive vi. Every one Prospects Management & Strategy i. Categorisation ii. Cold or warm prospects iii. Geographical concentration iv. List building v. Sources for general prospects: trade associations, business directories, news story lead etc vi. Direct mail vii. Lessee follow up viii. Speaking engagement ix. Convention& Trade shows x….

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MAJOR BAITS TO AVOID IN LEASE DOCUMENTATION
February 15, 2018
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| Documentation

  Succeeding in the leasing world require lessors to guide against certain pitfalls while documenting their transactions. Some of these pitfalls include: ¨ Equity Contributions — The word equity connotes ownership. Therefore asking for equity contribution in a lease transaction no matter the percentage gives the lessee a proprietary interest in the leased asset and in the event of default, the lessor will not be able to repossess since the asset is deemed to belong to both parties. The same…

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2018 OUTLOOK:THINGS ARE LOOKING UP
February 13, 2018
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| Latest News

In the second quarter of 2017, the Nigerian economy witnessed positive momentum which marked the beginning of the recovery process from a grueling economic recession in 2016 with its attendant impacts felt in 2017. The Gross Domestic Product (GDP) grew for the first time since Q3 in 2015 by 0.55percent in Q2, 2017 and 1.4% by Q3, 2017. Higher oil output and positive dynamics from the agricultural sector helped the economy exit recession. The Oil and Gas recorded its…

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OPPORTUNITIES FOR LEASING IN THE MARITIME SECTOR
February 12, 2018
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| Lease Advice

  The robust activities in the sector and continuous growth premised on the above developments, present enormous opportunities for investors. For instance, the deregulation and liberalisation of the port sector has given additional impetus for private initiatives in terminal operation. Investment in the provision of: i. Terminal facilities for container operation is available for private interest through different public–private sector interest such as leasing; Build Operate and Own (BOO); Build Operate and Transfer (BOT) in the different segments of the…

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KEY SUCCESS FACTORS IN HEALTHCARE LEASING
February 11, 2018
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| Lease Advice

  The following are success factors for playing in the Nigerian healthcare system: Design lease products with the following attributes: i. Target a specific market based on well-defined criteria ii. Using credit parameters, defines acceptable prospective lessees within that market. iii. Simultaneously include and exclude prospective customers (credit parameters are used to exclude prospective customers) Establish a target market using the following criteria: i. Type of equipment – You may only be interested in leasing certain types of equipment…

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