Tanzanian bank launches leasing facility
BOA said leasing offers much more benefits than traditional financing methods.Bank of Africa (BOA) has announced the launch of a leasing facility in Tanzania offering a range of products tailored to a number of industries such as transport, mining, construction, information technology, oil and gas and tourism.
Leasing is considered an efficient financing tool for small and medium-sized enterprises (SMEs), which often have difficulties accessing credit through banks.
BOA said leasing offers much more benefits than traditional asset financing methods, as it helps to maximise cash flow while allowing the company to benefit from quality assets. It also shifts the risk of technology obsolescence towards the bank.
"The bank has considered lease financing as an important product for companies, large and small, to finance business operations while managing assets effectively and maximising productivity and profits," the bank's Head of Enterprise Banking, Davikarani Williams, told Tanzania Daily News.
BOA started operations in Tanzania in June 2007 after acquiring Eurafrican Bank, which had been operating in the country since September 1995.