Summary
- Small and medium companies have been advised to consider leasing equipment to free up cash tied in capital investments.
- Daniel Mutiso, an account manager at Rentworks, a leasing firm, said Covid-19 has adversely affected many businesses making it hard to meet operational needs
Small and medium companies have been advised to consider leasing equipment to free up cash tied in capital investments.
Daniel
Mutiso, an account manager at Rentworks, a leasing firm, said Covid-19
has adversely affected many businesses making it hard to meet
operational needs.
“The best solution is to lease the
equipment or service as the need arises while using excess cash to meet
other necessary expenses that enable you to meet market demands,” he
said in Nairobi yesterday. Mr Mutisya said many companies make major
mistakes when they spend large sums of cash or borrow money to buy
equipment that end up being under-utilised due to the current Covid-19
situation.
“Just like a house, one should lease an
equipment or a service based on their ability to pay and that service is
now available in Kenya where private and public entities lease
equipment for specific uses under different models,” he said.
Mr
Mutiso said the public sector leasing of motor vehicles and medical
equipment has helped to improve service delivery, adding that there is
need to create awareness on the benefits of leasing.
He said leasing provided Kenyans with flexibility of acquiring
equipment needed at different times where one could change their kits
upon realisation it was unfit for the set task. “Say you imported a
manufacturing line and realised it was the wrong equipment. You will
remain with it and count losses but in leasing you have a window to
change the equipment,” he observed.
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