Leasing Industry to Expect 30% Growth in Nigeria By 2020
The recent adoption of the lease system by Nigerians indicates a positive spark to leasing companies highlighting prospect as the industry encounters growth from 189,881,130 billion naira in 2006 to about 1.26 trillion naira in 2016 in terms of volume.
Isaac Agenyi, General Manager, Enterprise Asset Leasing Limited stated that, with the rate of awareness and the high cost of asset acquisition, Enterprise Asset Leasing is predicting a 30% growth rate in Nigeria by 2020. In the past, businesses traditionally spoke to the local Bank Manager and arranged for a business loan to purchase equipment. Restricted lending and restrictive lending practices in Banks have made leasing the financing method preferred by all types of small and medium sized enterprises (SMEs) these days.
Purchasing assets for your business can be expensive. But if your business is to grow and succeed, such purchases are a necessity.
Whether it’s purchasing new vehicle, trucks, new plant, office equipment, computers or even furniture, purchasing equipment for a business can have a major impact on cash-flow or credit lines.
Leasing rather than outright purchase of equipment for your business offers many advantages. Leasing is a flexible, cost effective method of financing business equipment with the obvious advantage that the assets capital value is not required up front.
If you have found that you require assets for your business but your bank simply will not lend you the money you need, then asset leasing could solve your problem.
Through leasing, you could get that new business asset and reserve your capital. Leasing allows you to conserve capital and pay for assets over time out of income with fixed monthly / quarterly / annual payments.
Asset leasing is used by a wide range of businesses, from sole traders to large PLCs.
Among the benefits of asset leasing are:
- Working capital is not tied up in depreciating assets
- Cash and credit lines are reserved for other uses
- VAT on the cost of the equipment is not paid up front
- Payments are fixed which means you can budget effectively
- We can match your repayments to the life of the asset, thereby easing cash-flow
- The cost of acquiring the asset can be spread to coincide with the timing of sales generated by your business
- Lease costs are an allowable expense against Corporation Tax
As a world class organization, Enterprise Asset Leasing adopts only international best practices in its business operations. It has a robust yet efficient Risk Management and Internal Control system in place to ensure that all transactions are scrutinized and that all regulatory requirements are met before execution.
Their services include Lease Financing, Personal Loans, Treasury Services, Business Loans, Financial Advisory and Fleet Management.