We have been involved both in finance and Operating Leases over the years covering a wide range of items such as Motor Vehicles. Trucks, Generator, Office Furniture & Fittings, Heavy Duty & Office Equipment etc. The Company also provides both Finance and operating lease services of armored vehicles and Cash/Assets in Transit services. The Company has been a long-standing member of the Equipment Leasing Association of Nigeria.

What Exactly Is Leasing?
An equipment lease is a contract for the use of a specific piece, (or multiple pieces of), equipment or furnishings for a specific period of time and for specific lease (rental) payments agreed upon in advance.

The lessor (STC) is the owner of the leased equipment and makes the initial cash investment for its purchase. The lessee is the user of the equipment and gets all the benefits of its use, just as if they owned it. Leasing lets you finance the use, without having to finance the purchase.

Why Businesses Lease Equipment
There are as many reasons for leasing equipment as there are business who do, but some of the most often cited by those businesses are:

 Make Money Using; Not Owning; New Equipment
Remember, your business makes money by using your equipment, not by owning it; you don't have to own the electric company to benefit from electricity. A plan which lets you defray, delay or diminish costs by using someone else's equipment may be more practical than buying your own.
 

Spreading Cost to Future Owners
As a business owner or partner, anything you buy, you pay for. Anything you lease, future partners or owners will help you pay for. Law firms, medical practices and other businesses that expect to grow and add additional owners or partners in the regular course of their business find equipment leasing is an ideal way to pass on an appropriate portion of the cost of new assets to those who will benefit from their use in the future.
 

Use Cash for Other Reasons
Fast growing, successful businesses recognize the need to move quickly on income opportunities. They want their cash and bank credit lines available and not tied up in depreciating assets.
 

Faster Write Off
A properly written lease may offer you the fastest possible way to write off the costs of using new equipment. This lets you use money you would have paid in taxes to help keep your business modern and competitive.
 

Hedge against Obsolescence
Also, by writing it off faster, you avoid making long term commitments to rapidly changing technology. Under the current MACRS, (Modified Accelerated Cost Recovery System), depreciation schedules, it may take you 6 or 8 years to fully depreciate the purchase of technology you may only use for 3 years. Computers, telecommunication systems, and medical equipment are all good examples.
 

Cash Flow
Equipment Leasing generally requires the least amount of up-front cash to get new equipment in place and working for you. Just as you wouldn't pay a new employee their lifetime wages in advance, it's not necessary to pay up front for all the expected utility and benefit of new equipment or furnishings. Leasing them lets you pay for them as they work for your business.

What We Be Lease?
An amazing variety of things can be leased. Basically, anything that can be considered personal property, not permanently attached to real estate, can be leased. A good rule of thumb is; if it can have the same use somewhere else and can be moved there, it can be leased. Some of the most frequently leased items are:
 

Computers

Telephone Systems

Furniture

Medical Equipment

Generator

Photocopiers

Lab Equipment

Printing Equipment

Work Stations

Vehicles

Trucks

Production Machinery

Shop Equipment

Shelving & Storage

And much more...

     

 

HOW THE LEASE PROCESS WORKS


Applications through approval
The equipment leasing process is pretty simple and straightforward. You select the equipment or furnishing you need from the supplier of your choice, and then make an application to the leasing company describing what you want and where and how it will be used. The leasing company wants to know that you are able and willing to make your lease payments and so they do a standard credit check much like a bank would do.

Like a bank, they'll generally require the personal guarantees of the owners for newer businesses and closely held corporations.

Documentation and ordering equipment
Once the lease is approved, they'll ask the owner or president of the business to sign the lease agreement. Depending on the type of lease and the amount of leased equipment, the lease agreement may include one or more schedules listing the leased equipment and the terms.

Acceptance and lease beginning
Once the lease is signed and received by the leasing company with the appropriate initial payment and security deposit, the leasing company issues a purchase order to the equipment supplier you've chosen. When the equipment is acceptably delivered to you, they'll ask for a delivery and acceptance form to be signed. The equipment supplier is paid and your lease actually begins at that point.