Regional leasing firm, Vehicle and Equipment Leasing Limited (Vaell) has launched a flexible plan that seeks to cut costs for small and medium enterprises (SMEs).
The Zero Early Return Cost Lease programme will enable SMEs to have an exit plan when the business is not doing well, hence cutting leasing costs.
Under the existing plan, clients are locked throughout the lease period without an exit plan. This makes leasing costly as businesses have to pay for the assets even when they are not using them.
Vaell Managing Director Bertha Mvati said the programme, also known as Time Share, will provide “break options” for their clients.
“We have not attached legal demands when a client decides to take a break before the lease maturity. If your business is seasonal, why should we lock you in?” she said.
The programme, she nodded, is “very flexible” as it allows clients to end their leases early without penalties.
“We understand the fluctuating business environment and we would like to help our clients. With Time Share, customers get to match their machinery requirement with not only their long-term needs but also their short-term needs and pay absolutely zero rest lease fees,” she added.
When business is low, she acknowledge that idle equipment becomes a liability rather than an asset hence lowering profit margins.
Vaell is placing vehicles worth more than Sh300 million under the programme that will benefit the firm’s clients in various African countries including Kenya, Uganda, Tanzania, Rwanda and Southern Africa.
Time Share is designed for firms and individuals to free their leases from financial commitment should their personal circumstances change unexpectedly. It enables the lessee to hand the asset back, without the worry of funding the difference between the market value of the vehicle and the outstanding finance settlement amount.