LEASAFRIC GHANA LIMITED: Providing financial security through fleet and equipment acquisition.

For about 20 years now, Leasafric Ghana Limited has been carrying out the business of leasing and provision of ancillary services. It has remained for years one of the most profitable leasing companies in Ghana.

The company, previously 100 percent Ghanaian-owned, is now controlled by a combination of Ghanaian individuals and C&I Leasing Plc – the only leasing company listed on the Nigerian Stock Exchange.

Leasafric commenced business in June 1994. The Bank of Ghana subsequently licensed it in August 1994 as a non-bank financial institution to carry out the business of finance leasing as its principal business.

Leasafric also has the franchise to operate Hertz Car Rental in Ghana (Hertz is one of the biggest car rental companies in the world). Hertz has its presence in over 153 countries around the world and Ghana through Leasafric happens to be one of them.

Leasing is a financial process by which a firm/individual can obtain the use of a certain asset for which it must pay a series of contractual, periodic, tax-deductible payments.

In leasing, the property of the leased asset remains with the leasing company while the lessee obtains the right to use the asset by paying lease rentals for the lifetime of the leasing contract. At the maturity of the leasing contract, the ownership of the leased asset can be transferred to the lessee at a symbolic cost.

The lessee is the receiver of the service or the assets under the lease contract and the lessor is the owner of the assets. The consideration for the lease is called rent. The lessee enjoys the service without necessarily owning the asset.

Leasafric’s Services
 Since its inception, the company has focused on delivering services such as operating lease /fleet management services. The service cut across various sectors of the economy. Leasafric provides service for the oil & gas sector, both upstream and downstream; telecommunications; financial organizations; FMCGs; staff busing and school bus schemes.

 Also, finance leases for corporate clients, SMEs are available.

 The company also undertakes rental of heavy equipment like cranes and forklifts.

 Car rental on short- and long-term basis: Through the acquisition of the Hertz franchise, Leasafric is able to cater for customers who require vehicles on a need basis. It has saloon cars, SUVs, 4X4/pickups for off-road movements, luxury cars, and buses for weddings and church programs.

 Other ancillary services
The company offers finance options ranging from 24- 48 months depending on three main factors which include perceived risk, customer preference and funding structures.

• Perceived risk – If it is perceived that the vehicle’s utilization has a high risk, then the tenor will be short, but if it is perceived that its risk is low, the tenor can run up to 48 months.
Customer preference – Leasafric provides services in a customized approach to meet the peculiar and diverse needs of the customers.

• Funding structure – Financing option is also a function of funding for Leasafric. If long- term funding is gotten, then long-term financing is apparent.

Leasafric believes that one major benefit of leasing is cash-flow relief. The negligible initial capital outlay required from a lessee and the fixed repayments tied to cash-flow patterns help to ease cash-flow constraints on the capital budget. Capital can then be employed for other profitable purposes.

Leasing also enhances Return on Capital Employed (ROCE) – that is, increases profitability. Operating lease is usually referred to as “the off-balance sheet financing method”; leasing enables a lessee to use productive assets without increasing its asset base.

Furthermore, it increases productivity as leasing will enable the lessee to focus on their area of core competence. In addition, all rentals paid on operating lease are tax- allowable expenses. This helps for better tax management

There is also a reduction in downtime because with operating lease, there will always be a replacement vehicle to hold the fort. The cost of maintenance is reduced in operating lease while there is a transfer of the risk of loss.

Finally, in finance lease, your cash savings can yield a return which fights inflationary pressures. You lease and pay when you use the equipment. Through leasing, you can have fixed costs in your budget. This means that the lessee is not affected by the fluctuations on the cost of the vehicle or interest rates in the market during the period of the lease.

Apart from the above-mentioned services, Leasafric offers other services including school runs; the provision of school shuttle services; and provision of cross-border rental – so we can take you from Ghana to neighboring countries if required.

Leasafric provides Airside Meet and Greet, and arrival and departure assistance for companies who do not want their staff to go through the immigration hassles. We have partnerships to provide you with escorts, both armed and unarmed, for those who require extra security.

As a one stop global transport solution provider, Leasafric is positioned to offer you and your organization a world class, seamless and efficient services throughout Ghana. This is made possible through the strong pool of expertise that has vast experience & knowledge in leasing.

Leasafric is outstanding among service industries because of the diversity of its services and focus on excellent service delivery. This can be seen through the feedback gotten from customers through the years. With the acquisition of the Hertz franchise, there is now a wider coverage with extensive domestic and international operations aimed at bringing satisfaction to the customers.

It also has partnerships with auto dealers and workshops all around Ghana. This enables efficient service delivery. All the company’s vehicles are also fitted with GPS tracking to ensure safety and security at all times.