Asset finance is a type of loan facility that enables you to purchase business assets such as equipment, machinery as well as movable assets such as vehicles, motorbikes, laptops, computers, printers, photocopiers, saloon cars, pickups, tractors, generators etc. We finance upto 70% of the value of the asset. For assets whose value is below Kshs. 100,000/- you are required to save for at least three months, while assets whose value is more than 100,000/- you are required to save for at least six months. Interest rate is 1% per month.
The asset will be co-owned between you and Rhema. After completion of the loan, the ownership is transferred to you.
In Asset Finance no additional security is required. It is a self securing loan and the asset being financed becomes the security. In most cases we retain ownership documents (eg logbooks) until the loan is paid in full. We finance both new and second hand assets.
See also Project Finance