Why Leasing

There has been Significant economic development in the Ugandan market over the last decade presenting opportunities for leasing Private and public entities have now the opportunity to lease from CONTINENTAL ASSET MANAGEMENT LIMITED all vehicles, earth movers, any other types of equipment including those for the health sector and farming equipment without a percentage contribution with the following;

  • Operating Lease & Sale and Lease back
  • Management of equipment presents a three pronged challenge to organizations
  • Cost of acquisition
  • Actual management time
  • Loading of the balance sheet hence limiting organization access to further funds

Advantages of Leasing

  • Leasing is less capital intensive than purchasing
  • Capital assets may fluctuate in value . Leasing shifts risks to the lessor, but if the property market has shown steady growth over time.
  • Depreciation of capital assets has a different tax and financial reporting treatment from ordinary business expenses. Lease payments are considered expenses rather than assets, which can be set off against revenue when calculating taxable profits at the end of the relevant accounting period.
  • Leasing may provide more flexibility to a business which expects to grow or move in the relatively short term, because a lessee is not usually obliged to renew a lease at the end of its term.