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Equipment Leasing
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The leasing of new and used equipment for your business growth
An economical approach that enhances liquidity
2 services are offered by
K-Equipment Leasing
Leasing
Minimum leasing term is 3 years, with 3 options possible: Ownership, lease extension or return of equipment
Financial Lease
Lessees can extend the lease, purchase the asset, or return it at the end of term
Operating Lease
Equipment leasing only, ownership not an option At the end of the lease
Sale and Lease Back
Customers sell their unencumbered equipment and lease it back. With the ownership option at the end of the lease
Product Details
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Lease term3 - 5 years | Lease limit70-100% of the asset value (at KBank’s discretion) |
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Leasing installment rateFixed throughout the lease term | CollateralA guarantor is needed and a lien is placed on the equipment as collateral |
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Payment of leasing installmentsFixed monthly payments | EligibilityLLCs / limited partnerships / natural persons operating business |
Hire Purchase
A minimum 1-year term, ownership transferrred to customer at the end of the term
Enhance your liquidity
No need for large upfront capital investment to purchase equipment
Fixed leasing rates
Alleviate risk of interest rate fluctuations
Equipment can be located on any land
Even land that is mortgaged with other financial institutions
Product Details
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Lease term1 - 5 years | Leasing installment rateFixed throughout the lease term |
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Payment of leasing installmentsFixed monthly payments | EligibilityLLCs / limited partnerships / natural person operating business |
Frequently Asked Questions
What is the difference between leasing and hire purchase financing ?
Under a lease, the customer has a choice at the end of the lease to purchase the equipment, extend the lease or return the equipment.
Is imported equipment eligible for leasing and hire purchase financing ?
There are two cases that are eligible:
- Equipment imported by a vendor
- Equipment imported by the customer
Are there tax benefits to leasing ?
Lease payments made to KF&E are tax deductible in the full amount.
What are the qualifications for a natural person and a juristic person ?
- A juristic must have been properly registered and operated the business for at least three years, or has experience in a related business (those not meeting the criteria will be considered on a case-by-case basis).
A juristic person must have at least three years of experience in a related business and have entered into a related hiring contract. - Earning after expenses must be adequate for debt servicing.
- Not having record of default or being in the process of debt restructuring with a financial institution.
What preliminary documents are needed for consideration ?
- National ID card
- House registration of the applicant
- Business Certificate (for a registered business)
- Financial statements for past three years as filed with the Revenue Department (balance sheets, statements of income, notes to financial statements)
In case of a private individual: bank statement(s) for one year past - Latest sales turnover report filed with the Revenue Department (Form PhorPhor. 30).
