Asset Finance

This short term solution allows you to expand and modernize your business by acquiring assets for immediate use, without committing valuable capital or savings right away.

Installment sales

Self-securing form of finance that enables clients to acquire movable assets, plant, or machinery. The assets are jointly registered and owned by the client and the Bank.

Benefits

  1. Relatively low initial capital outlay.
  2. For tax purposes, the asset is ‘on-balance sheet’ i.e. it is treated as though it belongs to the customer.
  3. The customer will qualify for interest, wear and tear deductions and any applicable investment allowances.
  4. Ownership of the asset will pass on to the customer after receipt of the final payment.

Qualifying Criteria

  1. Customer should have ability to pay deposit of between 5-50% of cost of asset as is necessary
  2. Present six months’ bank statements, for non-account holders
  3. Provide a copy of your ID card, certificate of registration, a copy of the Memorandum and Articles of Association, a copy of the Incorporation Certificate
  4. Provide pro-forma invoices/sale agreement
  5. And where applicable 3 years’ audited accounts & Cash flow projections  – for financing above Kshs 5m

 

Operating lease

Suitable for customers who want to use but do not wish to own the assets. Serviced through a leasing agreement.

Benefits

  1. Lessor owns the asset.
  2. Is an off balance sheet for the lessor
  3. Lease rentals include interest, capital and VAT
  4. The client will claim VAT input credits based on the lessor’s invoice subject to normal VAT rules. VAT is charged on each lease rental (including capital & interest)
  5. Residual Value (RV)-This depends on the asset financed and is generally between 15% and 30% RV with a guaranteed RPU (Repurchase Agreement) with the Supplier or third party.

Note: Leasing terms and conditions may vary subject to compliance to specific statutory regulations

Qualifying Criteria

  1. Present six months’ bank statements, for non-account holders
  2. Provide a copy of your ID card, certificate of registration, a copy of the Memorandum and Articles of Association, a copy of the Incorporation Certificate
  3. Provide leasing agreement
  4. And where applicable 3 years’ audited accounts & Cash flow projections  – for financing above Kshs 5m

 

Finance lease

KCB & Dealers partner to offer corporate clients options for acquisition and leasing of fleets for effective cost management.

Benefits

  1. A full capital  pay out lease
  2. On balance sheet for the lessor but lessor owns the assets.
  3. Income tax deduction for Wear & tear and interest cost for lessee.
  4. The client will claim VAT input credits based on the Financier’s invoice subject to normal VAT rules
  5. VAT is charged on each lease rental

Qualifying Criteria

  1. Present six months’ bank statements, for non-account holders
  2. Provide a copy of your ID card, certificate of registration, a copy of the Memorandum and Articles of Association, a copy of the Incorporation Certificate
  3. Provide leasing agreement
  4. And where applicable 3 years’ audited accounts & Cash flow projections  – for financing above Kshs 5m


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