Leasing for Small and Micro Enterprises

Topic :

This toolkit is designed to help managers of NGOs and microfinance institutions in developing countries who are contemplating starting a leasing scheme. It explains what leasing is, how to design and market a lease product and how to deal with regulatory and fiscal issues. The introductory material is clear and easy to understand, providing an invaluable resource for staff training. General notions on the regulatory aspects of leasing are explained through case studies on legal and fiscal practices from different countries.

The toolkit is divided into eight chapters:

  1. What is leasing? An introduction to the basic principles of lease operation.
  2. The leasing operation. This presents the life cycle of a lease from the moment an entrepreneur selects a piece of equipment to the transfer of ownership at the end of a lease term.
  3. Marketing the lease product. This chapter explores ways of packaging and presenting lease products adapted to the needs of identified client groups.
  4. Pricing the lease product. This topic is examined from both the perspective of the lessor and the lessee.
  5. The legal and regulatory framework – including licensing and prudential requirements.
  6. Taxation.
  7. Accounting. This chapter explains the accounting procedures for the two types of lease and how to manage operational leases with uneven rentals.
  8. Performance monitoring.

The authors have produced a book which shows that it is possible to avoid much of the complexity associated with leases for large enterprises and still design a sound scheme for small and micro enterprises.

  • Resource type
  • Author Deelen, L.; Dupleich, M.; Othieno, L.; Wakelin , O.
  • Organisation
  • Year of Publication2003
  • Region
  • LanguageEnglish
  • Number of pages122 pp.

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