NIC Leasing LLP was registered in March 2015 and is a partnership between NIC Bank Limited and Mercantile Finance Company Limited.
Our leasing services in Kenya are currently available for Small and Medium Size Enterprises (SME’s), Corporates and Government both County and Central Government. With an operating lease, the lessee is allowed to use an asset over a specific period of time in return for periodic payments based on partial payout of the capital cost of the asset. It does not convey the right of ownership of the asset.
Lease may be offered as a packaged through structuring the lease with maintenance and insurance thus one predetermined rental (Wet Lease)
Execution of one Master Rental Agreement from the onset to cater for lease of various asset categories under one contract
Leases can be multi-currency based on your income streams
Flexible end of term options i.e. either renewal of the lease, return of the asset with no further obligations or sale of the same to third parties
Motor vehicles e.g. saloon , trucks, school buses
IT equipment ranging from computers, servers, laptops, pabx systems, point of sale terminals etc
Supermarket equipment ranging from shelves, coolers, chillers, check out counters, trolleys etc
Construction equipment e.g graders, rollers, earth movers etc
Furniture, fixtures and fittings
Medical equipment e.g. MRI, CT Scan
Industrial equipment like air conditioners, generators
No large initial capital required either for deposit contribution or outright purchase
No risks of obsolescence as you only pay for usage of the asset.
Flexibility in lease structuring where maintenance and insurance packaged as part of the lease thus one predetermined payment.
Cash flow management as predetermined rentals established in advance mainly payable on quarterly basis.
Full lease rental is an operating expense thus providing a tax shield for the full lease duration.
Allows flexibility at the end of the lease term such as extension on the lease or replacement of old assets for new
No involvement in disposal of the asset at the end of the lease term
VAT on the asset leased is spread over the lease term of the asset and can be offset against input VAT.
Rental payments are not based on 100% cost of the asset. This means that the lessee pays for a portion of the capital cost based on the period the asset is in use and doesn’t pay for the estimated value of the asset assessed at the end of the lease term.
For technological upgrades, leases allow a much faster mode of change through return and upgrade of the assets leased
Financial ratio benefits as assets are off balance sheet thus improving ratios such as return on capital and current ratios.
No large asset registers required as assets not owned
Last 2 years audited accounts
Latest management accounts if last audited accounts are more than 6 months old
6 months bank statements from all your active accounts
Copy of certificate of incorporation
Copy of company pin and memarts
Copy of all directors pin and id’s
Comprehensive company profile with details about company, branch networks, key management staff (Format: Name & Position, Education Background, Work experience)
Aged debtors and creditors listing for the last 6 months
Application letter indicating nature of assets to be leased, duration of lease, and expected action at the end of the lease