Vehicle and Equipment Leasing Ltd (Vaell) has announced Kes. 960 million Deal with PTA Bank. The PTA BANK, East and Southern Africa Trade and Development Bank has given VAELL US$ 9,500,000 to aid her in asset acquisition. The funds will finance heavy Komatsu equipment that will be instrumental in spearheading the development in the mining sector within the East African region. This partnership is seen as a boost economic development in the region as PTA bank and VAELL, a Kenyan firm, aim to strengthen their positions in the Tanzanian Market.
Devalingum Gopalla, Head of Legal- PTA Bank, described leasing as a very attractive asset financing model. “This is the beginning of a long-term association with the East Africa’s vehicle leasing market leader and we will seek to expand this partnership for the good of the region.” Gopalla added, “This strategic relationship will aid the tailored solution to cater for various business needs. We are very delighted to be part of an initiative that will help create employment for East African community residents.”
Leasing assist companies to pass on other services such as insurance, remote tracking and maintenance to lessors like VAELL which is its area of expertise at a fixed monthly cost during the rental period. This kind of business arrangement boosts value creation and clients’ business overall growth with less stress on fleet maintenance. This initiative ensures that clients derive as maximum value as possible as well as aiding them to concentrate in their key businesses with less interruption. This optimizes commercial and operational processes.
Speaking while signing the deal, the VAELL Regional Managing, Paul Njeru said, “Different forms of leases exist. Each has its benefits and weaknesses, but a lease can be tailored to a particular client, product or sector. Every single day we get different clients with different needs. We take time with each client that walks in our offices and explains to them what suits them as per their unique needs.”
Leasing as kind of business model is cost effective and it is the hassle free way of acquiring heavy equipment that are very expensive for both starters and growing companies. Business is all about becoming more productive and profitable. This is why this model is preferred. Because you only pay for the use of the equipment, you can reduce up-front payments to conserve capital. Plus, you gain the advantage of working with the latest technology.