World Leasing News today reported various reasons for which leasing is popular in commercial contexts around the world. For Nuevva’s Afrilease project, the article’s support for captive financing generated the most excitement.
“Manufacturers and vendors offer financing to support the sale of their products for numerous reasons. Establishing a finance capability (also known as a “captive finance entity”) can help a manufacturer increase sales revenue, gain market share and improve their customer relationships. However, establishing a captive finance entity can be a complex process. A manufacturer must weigh a variety of factors to create a strategy that will help its business both today and into the future.”
In essence, the paragraph above explains the reasoning behind Afrilease. Nuevva’s Afrilease not only fits perfectly into Nuevva’s remit of helping business activity grow in Africa, but it also makes doing business a lot easier for the entities that benefit from it. As a turnkey kit, Afrilease is designed as a complete solution for vendors and operators working on the African continent.
Another aspect of Afrilease excites Nuevva: “If businesses conducting operations in Africa find it easier to get equipment, more work will get done. It’s as simple as that.” Nuevva Director Matthew Bader notes that simply by making productive inputs available and accessible to operators on the continent, leasing can encourage development. ”We see it as the perfect type of project for Nuevva”, says Bader. ”It allows us to engage in a profitable business activity that really opens doors to the continent and supports opportunities for development. It’s a definite win-win.”
Nuevva is currently marketing its Afrilease Kit to various vendors, including heavy equipment manufacturers and passenger car makers, that do business on the African continent but want to expand their market share. ”From motors to backhoe loaders, if we can create financing opportunities to put these new productive machines in African countries, the continent will benefit from their production. That is why Afrilease is a project we’re backing wholeheartedly”, ends Bader.