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    VAELL unveils Sharing Economy to ease manufacturers’ inventory headaches

    Manufacturers are set to benefit from dry storage and warehouses to be unveiled countrywide by regional leasing firm, Vehicle and Equipment Leasing Limited (VAELL), in what pundits termed as a sharing economy. The model dubbed ‘space share’ will ease manufacturers’ logistics headaches since they don’t need to own warehouses and storage and therefore not incurring the cost of building and even renting the entire space that they are not using. Businesses will only be required to pay for the space they are using as they share the other space with others in trucks or in the warehouses. This will enhance the traditional warehouse market, from temporary trailers to Airbnb-style matchmakers that provides warehouse space and logistics together.

    Space Share is expected to revive the distribution model that has collapsed countrywide and revamp supply chain networks to embrace e-commerce expectations. The Naivasha based asset leasing firm’s new strategy to ease cost of storage for manufactures indicates a growing shift by companies in a bid to slice cost of doing business in these challenging economic times. The regional lessor becomes the first company in the region to come up with a space leasing scheme for manufacturers, suppliers and hauling companies. Such consumer’ oriented innovations for the mass market have made the firm bag various awards. The lessor was recently ranked by various award organizers as the preferred leasing firm in the region.

    According to VAELL Kenya’s MD, Bertha Mvati, the country has a cute shortage of warehouses and dry storage where manufacturers can store their goods as they wait for customers to buy. This has contributed to a low manufacturing due to fear of goods going bad.  

     “This invention is demand driven. We are responding to the market needs. Manufactures have been asking us if we can have this model in Kenya. We are happy that finally we have been able to come up with a product that suits their needs. It is being practiced in developed countries and we believe it will be a success here too,” added Bertha.

    With the dry storage and warehouses businesses can store their merchandises in strategic locations where supplies can be made proportion to the market demand. The warehouses will also act as distribution centers and hence enhancing service delivery and customer satisfaction.

    By providing enough space to store products closer to the consumers, space share will reduce trips made by manufactures’ daily from Nairobi, Mombasa, Thika, Nakuru and other industrial areas to make deliveries in the rural areas,” said Bertha Mvati, Vaell Managing Director for Kenya.

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    VAELL SHINES IN TANZANIA

    VAELL has once again been featured in the prestigious list of Tanzania’s Top 100 Mid-Sized companies for the year 2019/20 in an event held at Serena Hotel in Dar Es Salaam. This time round we were ranked position 29, being an improvement from number 45 in last year’s survey. This is the fourth appearance on the same survey for our Tanzanian branch. The annual ranking is organized by Citizen newspaper in conjunction with KPMG Tanzania. The annual award winners are normally selected from a competitive pool of applicants through a rigorous scrutiny. A panel of independent judges classify the winners based on their reach, uniqueness and innovation, effectiveness and impact.

    Vaell Tanzania team receiving the award

    VAELL Tanzania was the only leasing firm that made it to the list this year. This is our third major award this year having scooped two other honors in Kenya where we were recognized as the leading lessor and lessor of choice by other such acknowledgement organizers.

    VAELL Kenya did not participate in the KPMG award this year since we already passed this category.  In 2014, VAELL Kenya was ranked the first runner-up in the survey and rose to Club 101 in 2015.

    We owe the success to your contribution and the dedication of our Tanzania team.

    It is worth noting that in 2018 we were also recognized as the best East African Company in service sector by East African Business council Tanzania

    It is an honor to be recognized at a regional level for our efforts in supporting the growth of SMEs. The award organizers said that our improvement in the ranking came as a result of good and sustainable profitability supported by ability to innovate products and adapt to the market. They also said that since inception we have been at the fore front in supporting and empowering Small and Medium Enterprises through offering customized leasing services for our clients.

    In the recent months, the Tanzanian team has tremendously improved and led by example. This is a challenge to other teams to benchmark with this improvement and post better results.

    We thank all staff, clients and stakeholders for your continuous support!

    By VAELL Tanzania Management 

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    VAELL Logo

    Way back in time, different symbols represented different ideologies. You might be wondering what VAELL logo means? Have you asked yourself what the star in our logo means? The four pointed star represented true justice and righteousness. It was also a symbol of “Utu” believed to be ubuntu (People of Utu) is sourced I am because we are.

    We are proud of a symbol of justice and righteousness. It balances and defines our own products. It also represents our ultimate objective for every action we undertake. For every peril overcame, a quality is developed in gifts; clarity, discernment, radiance, energy, warmth,equality.

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    VAELL ROLLS ZERO EARLY RETURN COST LEASE

    Regional leasing firm, Vehicle and Equipment Leasing Limited (VAELL), has launched Zero Early Return Cost lease program dubbed ‘Time Share’ to help businesses and individuals withstand fluctuating business environment. The lessor becomes the first firm to implement lease break program for SME’s and the broader market in the region and is expected to bring new development to the ordinary lease. The existing lease locks clients throughout the lease period without an exit plan. Many people feel the lease is cost-demanding because you have to pay for the asset even when not using it. The idle equipment turns to be a liability rather than an asset, lowering profit margins. In finance lease you cannot take a break while servicing a loan. When loanee fails to pay the banks the agreed amount they face the risk of their assets being repossessed.

    Individuals and institutions which only require assets services during peak seasons fear incurring losses while paying for the asset once the demand goes down. Hence, the new lease will gives them an opportunity to lease the asset at a time of demand and return to the lessor after the use.  This comes as a sigh of relief to businesses that are seasonal as the product allows clients to return assets until such a time a contract is renewed.  

    Bertha Mvati, lessor’s MD for Kenya said, “This will provide break options for our clients and is in compliance with the new IFRS rules. We have not attached legal demands when a client decides to take a break before the lease maturity. If your business is seasonal, why should we lock you in?”

     “This lease program is very flexible and allows clients to end their leases early without penalties. This offer may create substantial equity for our customers,” said Bertha Mvati.

    Time Share is designed for companies and individuals to free their leases from financial commitment should their personal circumstances change unexpectedly, for instance if their contract or tender is cancelled suddenly. It enables the lessee to hand the asset back, without the worry of funding the difference between the market value of the vehicle and the outstanding finance settlement amount. Life is full of changes. The chances are that some unforeseen event and challenges resulting in a change to financial situations may happen at some stage during the term of a lease agreement.

    “We understand fluctuating business environment and we would like to help our clients. With Time Share, customers get to match their machinery requirement with not only their long term needs but also their short term needs and pay absolutely zero rest lease fees,” she added.

    The company is placing vehicles worth more than Kes. 300 million into the program. This program will benefit lessor’s clients in various African countries including Kenya, Uganda, Tanzania, Rwanda and Southern Africa Market.

    For further details and updates, please

    Contact;

    Jared Oundo,

    Corporate Communications

    VAELL,

    Email: jared.oundo@vaell.com,

    Cell: +254 719408244/0780408244

    ABOUT VAELL

    Vehicle and Equipment Leasing Limited (VAELL) is the market leader in asset leasing, maintenance and consulting in Eastern and Central Africa region. It has presence in the auto mobile, healthcare, mining, agricultural, telecommunication, construction, gas and oil sector. It has managed to diversify and expand its portfolio by offering customized solutions to suit every client’s requirement and need. VAELL, the leading provider of integrated leasing services for a broad range of moveable assets and machinery across the region, has geographical coverage with fully fledged subsidiaries in Uganda, Rwanda, Tanzania and Zambia. The leasing firm has a correspondent relationship with other leasing companies in South Africa and India. It facilitates clients with vehicles and machinery throughout the region from any one country office across its network.

    In 2014 VAELL won the award for the Best in Transport, in the Top 100 KPMG/Business Daily survey, and 2015 shot into Club 101 in the same survey. It has scooped 14 awards in the last 5 years. The leasing market leader was named in 2018 by East African Business Council Tanzania as the best East African Company in The Service Sector. The lessor has also been named in the South Africa’s Titan Building Nation awards in the outstanding achievement category.

    VAELL was recently hosted by Nairobi Securities Exchange (NSE) onto its premium incubation and acceleration programme, Ibuka. VAELL also owns Quipbank Trust Limited, equipment sharing platform and TingA, East Africa’s largest tractor share platform.

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    VAELL unveils Sharing Economy to ease manufacturers’ inventory headaches

    Answers to some of your questions regarding our services.

    Do I have to lease a new car (s)?
    It’s recommended that you do, since maintenance costs are low and performance is at its optimum, there’s also an option of leasing a second hand (used) car(s) that’s not 5 years past its manufacture date.
    Who is VAELL?
    Vehicle and Equipment Leasing Limited ( VAELL ) is  the leading  independent asset leasing,  maintenance and consulting  company  in Eastern and Central African region offering operating lease on all moveable assets. Started over a decade ago in Nairobi , Kenya , we have grown in leaps and bounds into a comprehensive network with fully fledged subsidiaries  in five countries : VAELL Kenya , VAELL Uganda, VAELL Tanzania, VAELL Rwanda and VAELL Zambia.

    Our extensive client list bears testimony to our ability to provide organizations of all sizes with invaluable leasing solutions that help them successfully compete and grow. Over the years, we have developed extensive experience across a wide range of industries such as manufacturing, mining, Construction & energy, IT, telecommunications, retail, health, medical and pharmaceutical, education, banking, insurance, hospitality, entertainment, Governments and regulatory bodies.
    I want to lease a vehicle (s). Where do I start?
    Just send an email to ilease@vaell.com or call 0786 982 479 requesting a lease for a Vehicle (s) or Equipment and we shall set you up with a leasing expert to discuss your leasing needs.
    What documents are needed for one to lease?
    Some of the documents we require include your audited accounts for the past 3 years, Director’s PIN, a Certificate of Incorporation, a Tax Compliance Certificate, a Memorandum of Association and an Article of Association.
    How long is the process of leasing a vehicle (s)?
    After having all the documents necessary it may only take 3 to 4 weeks.
    How soon do my payments start once the equipment is delivered?
    Normally your monthly lease payments will not start approximately 30 days after we have made a verbal verification of acceptance of the equipment. We also let you pick your own due date without any extra cost to you because no one knows your monthly cash flow better than you.
    What are my options at the end of the lease?
    Within Thirty (30) days after your lease has been paid in full all rentals owing, you shall then have three(3) option upon giving written notice:
    • To purchase the equipment outright.
    • To renew the lease.
    • To return the equipment. 
    Can I pay the lease off early?
    Yes, VAELL Leasing will offer your company the option of buying your lease out early without penalties. . This is done by calculating the net balance at the time of your request, adding your F.M.V. purchase option, current lease taxes on that amount and any uncollected property taxes due for that year. This will discount all remaining lease charges and tax obligations of your lease.
    Can I return the equipment and stop payments?
    No, the lease is non-cancelable. You may return the equipment after all the lease payments have been made or pay your lease out early as we talked about above.
    How long can I lease for?
    A minimum of 3 years and a maximum 0f  4 years with options of renewal.
    Can I Lease soft costs or software?
    Yes, the general rule of thumb is:Soft costs for software, training and installation is limited to approximately 25% of the hardware cost and is taken into consideration on a case by case basis.
    Is the lease transferable?
    Yes, assuming that the new lessee is will credit qualify.
    Can I purchase my lease vehicle(s) or equipment at the end of the lease term?
    Sure you can, through a 3rd party we give you first hand right of disposal.
    Do i have to purchase all my furniture or equipment from the same dealer?
    No, knock yourself out, shop till you drop! Any combination of equipment type or number of vendors can be put on any one lease.
    What about licensing and warranties for this equipment?
    The licensing and warranties offered by the dealer and the manufacturer are passed directly to you.
    Can I put money down on the lease?
    Yes, if you wish to put money down as a cost reduction over and above your advanced rentals.
    What if i already own the equipment? Can I lease it?
    Yes, as long as the equipment or furniture was purchased from the original vendor within the last 90 days and we can verify a clean title.
    How do I benefit from leasing than buying?
    You save 30% corporate tax as a result of leasing.You concentrate on the core business of your organization.No heavy assets on your balance sheet among other many more benefits here.
    Other than leasing what other services do you offer?
    Other services we offer include: fleet management, asset tracking, we insure your vehicle(s) or equipment on your behalf, vehicle and equipment maintenance and service and lease consultations.
    Does my lease payment include maintenance?
    Vehicle and equipment maintenance is optional.

    Do you have additional questions not answered above?

    If so, feel free to give our leasing representatives a call at 0786 982 479 or email us on ilease@vaell.com and we will get back to you as soon as possible.

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