Management

Equipment Financing in Kenya

Leasing is one of the best ways to obtain equipment finance.

Updated on

January 10, 2020

housing loans — Houses in major towns are more likely to be covered by most financiers. PHOTO | FILE

Equipment financing gives your business the construction equipment 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 collateral to get approved.

Equipment financing options

1.) Equipment Loan – This loan is obtained using the equipment as collateral. Excellent operating history, credit rating, and debt ratios are important considerations.

2.) Equipment Leasing – This is a fixed-period lease contract in exchange for periodic lease payments, usually rent, for the use of equipment. This kind of financing has lower credit requirements.

3.) Municipal Equipment Leasing – This is a lease transaction with any governmental agency, like a city or county.

4.) Sale and Leaseback – This is the sale of an asset for cash, but with a contract to lease the asset back from the funding source purchasing the asset.