Under Vehicle Asset Finance we finance moveable assets that are clearly identifiable, removable, insurable and which can be leased or sold in the event of default. For example:
• Vehicles – passenger and commercial
• Plant and machinery – mining equipment etc.
• Equipment – printing machines, factory plants, mining equipment, office equipment, professional equipment etc.
• Yellow metal – Bulldozers, Front end loaders, graders, etc.
• Aircraft – Aero planes and Helicopters.
Financial Leasing
Financial leasing is a contractual arrangement that allows one party (the lessee) to use an asset owned by the leasing company (the lesser) in exchange for specified periodic payments.
• Financial Lease – All risks and benefits of ownership vests with the customer while the Bank retains title to the asset, which may or may not be transferred once all lease payments have been made by the customer.
• Operating Lease – No risk and benefit of ownership are transferred to the customer. The Bank retains full title to the asset but give the customer use of the asset in return for a series of payments. No intention of ownership.
Benefits of leasing
• Alternative source of finance - free other borrowings for working capital
• No or minimal collateral required
• Lower cost structure
• Minimal capital outlay required
• Matched maturity where terms = asset life
• Flexibility and shorter processing times
• Access to equipment and production assets
• Increased flexibility and investment in equipment
• Lower maintenance and upfront cost
• Easy cash flow budgeting
• Rentals can be tailored to meet the lessee’s cash flow pattern
Insurance Premium Finance
Most businesses have to pay their insurance premiums annually in advance. Some insurance companies and/or brokers allow the premium to be paid monthly or quarterly, but they will charge an administration fee to the client.
This product is a financing product which allows the customer to finance their annual insurance premium, rather than outlay the lump sum upfront.
In repaying VAF fixed monthly amounts, clients can avoid premium increases during the year and it allows them to manage their cash flow more effectively. You may think that cash flush corporates will not have a need for this product, however indications and history tells us that it is a product in demand and where customers can allocate funds to alternative income generating projects they view the interest charged as an acceptable opportunity cost.
• An unsecured loan (dependent on the type of insurance cover)
• The customer pays the traditional annually or quarterly paid premium cost over a period of 10 months.
• Structured deals specific to client’s needs can be offered.
• The customer can reinvest the cash flow savings back into working capital.
• The premium underwriting rate is fixed for the year in advance.
• All insurance policies can be combined into one monthly payment plan.
Vehicle Loan
We want to make owning a vehicle less complicated for private individuals and other professional people. We now offer a simple vehicle specific product that is easy to manage and more cost effective repayment terms. We will even take care of the comprehensive insurance and other insurance products at preferential rates. We need the following information:
• We will assist you with the completion of an application form and income and expenditure statement
• Proof of income
• Identification document
Insurance Products
Comprehensive insurance
This cover is required by all banking institutions that finance motor vehicles on credit. Our comprehensive policy provides cover against theft, loss, accidental damage, malicious, damage, and liability to third parties and riot.
Top Up Insurance
Top up cover is a cover that provides protection when you inadvertently violate your policy conditions, a claim is repudiated because a payment has been missed. Included in your Top Up cover is an excess protector which pays your underlying excess or a maximum of 15 % of the Market Value of The Vehicle, or a maximum of Ugx 15,000,000 which ever is the lesser. Also in your TopUp cover is Shortfall. If a shortfall remains on your account after a total loss (when the vehicle has been stolen or written off) has been paid by the insurer. TopUp will pay for the shortfall, excluding arrears and the interest thereon.
Automatic Settlement Benefit
Vehicle Asset and Finance offers an Automatic Settlement Benefit policy which will settle your financial agreement in the event of you becoming totally disabled or passing away, there are NO medical examinations for this Life cover.
* do not use any commas when entering the Car Loan Amount
