Management
Equipment financing in Kenya
Leasing is one of the best ways to obtain equipment finance.
Equipment financing gives your business the construction equipment it needs in order to operate successfully and make a profit.
Leasing is one of the best ways to obtain equipment finance. A lease is good for businesses because it does not tie up money.
Construction equipment finance through a lease is attractive to businesses because they do not need huge amounts of collateral so as to get approved.
RELATED: 7 Top Road Construction Equipment
Here are some of the most common options of equipment financing:
1.) Equipment Loan – This is a loan obtained using the equipment as collateral. Excellent operating history, credit rating, debt ratios are the most important considerations.
2.) Equipment Leasing – This is a contract for a fixed period of time in exchange for payments, usually in the form of rent for equipment. This type of financing has lower credit requirements.
3.) Municipal Equipment Leasing – This is a lease transaction with any government agency, such as a City or County.
4.) Equipment Sale and Leaseback – This is the sale of an asset for cash, with a contract to lease the asset back from the funding source purchasing the asset.