Aquila introduced the finance lease product at the origination of the company in 2005 and has since then developed tailor-made solutions for its diverse customer segments. The product is offered to retail clients (both individually and via associations and cooperatives schemes), small and medium- sized enterprises and small corporate.
The finance leases are generally structured as follows:
- The lessee selects an asset (equipment, vehicles, IT hardware, motorcycles, trucks, cranes, power generators etc.);
- Aquila Leasing purchases the asset;
- The lessee is granted use of the asset during the period of the lease in exchange for a series of rentals for the use of the asset;
- Asset ownership resides with Aquila;
- The lessee has the option to acquire ownership of the asset at the end of the lease.
Another innovative lease product is the Cooperatives and Rural Empowerment Scheme. Under these schemes, Aquila collaborates with Federal and State Governments, Agencies, Cooperatives and Employee Trade Unions to assist civil servants in the acquisition of assets.
An active collaboration of the agency is required to structure the transaction and ensure prevention of over-indebtedness by implementing checks on the client’s disposable income. To facilitate repayments, these are made directly from source.
This innovative scheme has so far provided access to equipment finance to close to 25,000 Nigerians. Typical assets which Aquila finances under this scheme are motorcycles, tricycles, laptops, refrigerators, freezers, and generators which support the generation of additional income to supplement the incomes of lower-ranking Nigerian civil servants.