MOTORHUB MAGAZINE
deal with most of them.
•
No need for collateral. SME’s have
•
largely not been able to access credit
simply because they don’t have any
security to put forward. In the case of
leasing, the financed asset the primary security.
•
Leasing also conserves the cash
flow, for example if you’re a business
and you wanted to have this capital
• In the case of operating leases,
investment, rather than pick out cash
you are able to renew your capital,
from your business to buy a bus, you
machinery, equipment and you won’t
would approach us and we would
suffer any issues of old age with
finance the bus and give it to you.
the machinery. So you can always
This way, you have your cash free to
upgrade as and when you feel you
be able to finance your day to day
should.
operations.
Those are some of the key benefits of the
The other benefit of leasing is the
lease.
tenure. Most of these working facilities are restricted to 12 months. Our Does one need to hold an
tenure spreads up to 60 months, so
account with Stanbic bank to
u can have it it spread over 5 years.
access this product?
This comes with a certain ease and
You may not be a customer of Stanbic
the rentals are so low and affordable. at the time of application but in case the
facility is approved, you will be required
Are there limitations to the
value of assets I can get financing for based on the income I
receive?
As a customer, it is always important for
you to ensure that after meeting your
monthly rental obligations, you are left
with disposable income or funds to run
your operations as a business.
Why should one pick asset
financing over a typical bank
loan that they are probably
more familiar with?
•
Something that we have been consistently talking about is the flexibility
in the structure of repayments, lease
repayments are structured to match
the client’s cash flow; I gave the
example of a school paying termly.
Loans however, are somewhat standardized.
“
The beauty with
leasing is, we will
give you the chance
to source, it’s you
who knows best what
you want, what your
dream car is and which
dealer you would want
to work with.
•
If you are VAT registered as a business, you are able to claim back your
VAT; there’s that tax benefit. We also
encourage our clients to be VAT registered most of our clients to get VAT
registered because they should be
able to benefit from that especially if
they are businesses.
Leasing, buying or both?
Let’s talk business.
Speak to us today
about Vehicle and
Asset Finance.
APOLLO TWINOMUHANGI
HEAD VAF, SBU
ABOUT APOLLO
Full Name: Apollo Tayebwa Twinomuhangi
Experience: 15 years
Previously Worked at: DFCU, Barclays
Currently: Head, VAF, SBU
Leasing Background: 2001 at DFCU
(DFCU LEASING)
ISSUE #3 Jan - Mar
17