By Jared Oundo,
In the midst of the worsening economic crisis every business is looking for solutions to keep them afloat. Every organization is cutting cost as experienced or read by the many layoffs. Vehicle and Leasing Limited (VAELL) offers an equal solution through leasing. This is the use and possession of assets during a specified period in exchange for a specified rent.
Mogire John Mogire, the Commercial Manager VAELL Leasing said, “if we can rewind the events in the past three months, the budget was read and it did not please many investors and business owners because of the high tax imposed and as stated by the president it would help fund the big four agenda.”
“Leasing helps businesses to stay afloat in hard economic times like the ones we are currently experiencing with fuel taxes. Leasing frees up the capital by managing the assets and letting them concentrate on their core business,” said the Commercial Manager VAELL Leasing.
The implementation of interest rate cap has enabled leasing companies to access loan facilities at affordable rates hence availing enough funds to support leasing activities.
The logic behind it is that in the economy, the costs associated with acquisition is usually transferred to the consumer and when the cost of borrowing is low, the leasing cost subsequently goes down putting more clients in a position to afford paying reduced lease rentals. This goes a long way in improving business incomes via leased assets and a nation’s GDP growth subsequently.
Companies are experiencing unfavorable increment of tax obligations which increases business financing expenses and operating costs, therefore, one efficient way of ensuring reduced costs is to capitalize on tax allowance provided for the organizations that use leased assets.
Benefits of leasing:
- Leasing gives you the option of spread out monthly payments
- Tax deductible
- Flexible terms
- Equipment upgrade
VAELL is an independent asset leasing maintenance and consulting company established in 2006.We are an expert in asset and plant lease acquisition and maintenance, providing services in an array of sectors across the country. Headquartered in Kenya, VAELL’S presence is felt in other African countries like Uganda Tanzania, Rwanda, Burundi Zambia, Malawi and Congo.
CONTACT: MWEU REGINA NGUNA, CORPORATE AFFAIRS