Bank introduces leasing finance facility
The Bank of Africa Tanzania’s enterprise banking head, Ms Davikarani Williams, speaks about the new facility on lease financing in Dar es Salaam. With her is the bank’s marketing and public relations manager, Mr Muganyizi Bisheko. PHOTO| BOSHA NYANJE
What you need to know:
- Lease is an agreement that enables one party to use another’s property for a stated period of time in exchange for consideration.
- BoA enterprise banking head Davikarani Williams said the facility targets either company’s dealing with construction, transport, information technology, tourism and oil and gas to acquire assets financed 100 per cent by the bank.
Dar es Salaam. Bank of Africa (BoA) Tanzania has introduced a leasing finance facility that will enable companies to acquire assets without having large capital.
Lease is an agreement that enables one party to use another’s property for a stated period of time in exchange for consideration. BoA enterprise banking head Davikarani Williams said the facility targets either company’s dealing with construction, transport, information technology, tourism and oil and gas to acquire assets financed 100 per cent by the bank.
“The facility provides an alternative source of credit that is specifically designed to accommodate acquisition of different assets.” According to her, the customer is expected to pay a series of instalments or rentals as agreed on the contract for the use of the asset while the bank remains the legal owner of the asset during the lease period. The leasing does not draw large amounts of cash in equity, customer’s working capital.
The facility offers much more benefits than traditional asset financing methods as it helps to maximise the cash flow of the company. She urged companies to take advantage of the facility to maximise productivity and profits.
