This is a contract between an owner of equipment(the Lessor) and another party(the Lessee) giving the Lessee possession and use of a specific asset in return for payment of specified rentals over an agreed period. Basically, there are two major types which are: (i) Finance or Capital Lease (ii) Operating Lease In Bancorp Finance Limited, the finance lease involves: • the lessee (customer or borrower) selecting an asset e.g. vehicle, equipment etc; • the lessor (BFL) finances the purchase of that asset; • the lessee uses the asset during the lease tenor; • the lessee pays a series of rentals/installments for the use of that asset; • the lessee has the option to acquire ownership of the asset by payment of the residual value, or purchase option price (applicable only in Finance Lease) Sale and Leaseback Here an asset is to be refinanced and the tenor should not be more than eighteen (18) months. Inspection of the asset and change of ownership into the name of Bancorp Finance Limited will be arranged once the request is approved. Advantages of using Bancorp Finance • Lower initial expenses which preserves working capital for your business. • Highly competitive rates. • Flexible terms. • Easier to upgrade equipment to keep up to date with technology. • Wider range of leasable assets. • An association of dependable partnering vendors offering guarantee and after sales services. • Structured payments to suit clients’ cash flow; and • Ownership of the asset(s) will be transferred to the client at the end of the lease period(for a Finance Lease).