Asset finance in Kenya- Mwananchi Credit

Asset finance is the ultimate solution for people with big dreams but who have no money. This service is available for investors with active business accounts with banks or credit companies such as Mwananchi.

If you want to buy assets such as lorries, buses, cars, or other movable assets, asset finance should be your ideal option. You are not only limited to these few assets; you can discuss your service providers for other properties, including heavy industrial equipment, motorcycles, and different types of machinery.

Asset Finance Kenya

What is asset finance, and how does it work?

Asset financing is borrowing money or a loan using your business balance sheet asset. This includes accounts receivable, inventory, and short-term investments represented as the security for asset finance Kenya. The product is designed to fund only movable assets.

It is different from only ways used by banks to finance investors when buying properties. The business gives its assets to enable quick lending. Asset finance loans are processed within a short time. When looking for similar assistance in a traditional lending setting, the loan takes longer to process and has to go through numerous steps, including projection and business planning.

If you are looking for a fast way to get working capital, asset finance companies in Kenya should be on your list. They provide you a reliable and quick solution. The best thing is that you can pledge your business receivable accounts or inventory assets.

Types of Asset Financing

Hire purchase

When getting an asset using a hire purchase, the lender will buy it on your behalf. In Kenya, asset finance companies like Mwananchi credit are given enough time to pay off the loan over an agreed period. When you make the last payment, you get a chance to buy the asset at a nominal rate.

Equipment lease

Equipment leases are flexible and give you freedom. In the past few years, this option has gained popularity as it is simple to start. You start by getting in a contractual agreement with your lender. The contract states the period you are allowed to use the equipment, and you have to make payments as agreed until the end. A business can choose to return the rented equipment or renew the contract once the lease comes to an end. You also have a chance to upgrade the equipment or purchase it.

Finance lease or capital leases

The finance lease states that the borrower takes all obligations and rights of ownership during the lease period. Asset finance lenders expect you to take care and maintain the asset as required until the lease duration is up.

Asset refinance

Asset refinance refers to a situation where a company wants to get a loan by pledging its current assets as collateral. You use assets such as vehicles, accounts receivables, property, and equipment to access such asset finance solutions. It becomes easy because Mwananchi credit will not judge your business based on its creditworthiness. They value the assets you are willing to pledge and let you know how much money you can get based on the value of your assets.

Finding asset financing services

Loans based on assets are common in Kenya. They come with many benefits for both small and large businesses. Asset finance providers are lenient compared to traditional loan lenders. They make it possible for investors to get money quickly without charging them exaggerated interest rates.

Why might you choose asset finance?

Here are several reasons to consider asset finance services:

  • Improved liquidity- When your company gets financing based on assets, it enjoys increased liquidity. With enough cash flow, you can stabilize your business operations and allow rapid growth.
  • Easier access- It is easy for businesses to qualify for asset finance in Kenya than a business loan. All you need is a track record of profits and reasonable financial controls. Having assets such as accounts receivable and invoices from reputable clients that a credit company can leverage increases your chances of getting a quick loan.
  • Flexibility- Asset finance options give you flexibility though you will encounter several restrictions. The money borrowed can only be spent on business purposes. Since the loan is based on the value of your company’s asset, it is approved quickly. You are not required to complete the whole underwriting process.
  • Stepping stone- Asset finance loans in Kenya help a business grow more. Most business companies cannot qualify for traditional bank loans. With time, you build a track record, and you can get cheaper loan solutions

Annual investment allowance for asset finance

Annual investment allowance is also known as AIA. It is a way used by companies to claim tax relief on their assets. For example, when you buy machinery or plant equipment, you can deduct the asset cost from your annual profit for a particular year before calculating the amount of tax to pay for the profit.

Fund Your Next Business Asset

Mwananchi Credit is a reputable asset finance provider in Kenya. They provide you with a solution to keep your business growing. The road to success is long and requires enough cash flow. Whether it’s asset finance for cars or any asset, you can fund your next business and get off the ground within a short time.

FAQs

How does asset financing work?

Asset financing is a loan borrowed by a business using short-term investments, assets on balance sheets, and accounts receivables. As a borrower, you must give the lender collateral for the loan.

What are asset finance companies?

It is an easy financing method that enables investors to buy an asset of their choice. You make monthly repayments and keep the asset forever once you have finished repaying as stated in the contract.

What type of asset is a loan?

Your asset becomes a loan once you give it to a lender as security. This means you may lose it if you fail to repay the loan as agreed with the lender.

What are 2 types of assets?

The 2 types of assets that you can use to get asset finance Kenya are tangible and intangible assets. Tangible assets include cars, equipment, and many others, while intangible assets are copyrights, patents, trademarks, and patents.

Is asset finance a loan?

Yes, asset finance is a loan that must be repaid as agree with the lender. This type of loan enables you to buy assets, including machinery, vehicles, and equipment.

If you are looking for asset finance, you can talk to Mwananchi Credit in Kenya. They have an asset finance calculator that helps you know how much you can get and how much it will cost you. Apply now and fund your business for consistent growth.

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