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Do I need security? |
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No. The leased asset is our "security". |
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Why not borrow from the bank? |
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Banks usually require a collateral security in the form of a charge over your other assets, which reduces your future borrowing potential. |
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As opposed to a bank loan at a comparable nominal interest rate, a lease finance may result in an effective
tax-saving, the quantum of which depends on the following factors: nature of equipment, income tax rate applicable to the Lessee, status of the Lessee, timing of investment, availability of taxable profits, etc |
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Banks usually lend at variable interest rates, meaning that future instalments are not ascertainable; as opposed to lease payment, which are most of the time fixed over the duration of the lease. |
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Why not pay cash? |
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If you purchase on a cash basis, you are effectively tying up your funds, possibly for a long period of time. At Mauritius Leasing, we know that cash is a scarce and valuable resource which needs to be utilised judiciously to further develop your business. Alternatively, your excess cash resources may be invested in our attractive deposit plans. |
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How does leasing help my business? |
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Leasing allows you to use the asset productively, generate revenue and pay for the asset in the form of lease rentals with or without a view to owning the asset in due course. In other words, we help you develop your business and make you wealthier! |
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What happens if I cannot service the lease contract? |
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As a last resort, we will have no other alternative than to proceed with repossession of the leased asset. |
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How do I qualify for a lease? |
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As we have the "security", we will be concerned only that you are financially healthy and capable of servicing your rental commitments with us. |
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Can I Lease and Deposit at the same time? |
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Both Leasing and Deposit plans have certain tax advantages. Contact one of our specialist advisers for more information.
However, if you have a deposit plan with Mauritius Leasing and also apply for lease facilities, this definitely increases your credit rating with us. |
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| Leasing Contract |
The commercial agreement which governs the relationship between Lessor and Lessee. The contract usually specifies type of asset, the interest rate, the lease period, the type of lease, the residual value, the amount of rent payable, and maintenance and insurance responsibility. |
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| Lessor |
| The Mauritius Leasing Company Limited. |
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| Lessee |
| The Client. |
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| Residual Value |
The future value of the equipment at the end of the lease period. Under a Finance Lease arrangement, the Lessee may exercise his/her option to purchase the leased asset, subject to payment of this amount at the end of the lease period. |
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| Leased Asset |
The actual equipment, plant and machinery or vehicle which is the subject of the lease contract. |
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| Insurance |
This usually refers to appropriate insurance cover, depending on the nature of the equipment. |
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| Normal Wear and Tear |
Depreciation of the leased assets through normal use and passage of time. This does not include damage due to misuse or accidents. |
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