How does Flexi Rent work?

Flexi Rent allows you to lease an asset on favourable terms, minimising the risks associated with the purchase. The entire risk and rewards incidental to ownership remain with the lessee.

  • You rent the asset for an agreed term and make regular repayments that include proportions of capital, interest charges and VAT residual value not less than 25% of original cost excl. VAT.
  • You deduct the lease rentals through income tax treatment.
  • VAT treatment means  the lessor charges VAT on each rental amount and you can claim VAT input where the asset allows
  • Accounting treatment means the asset is recorded as an "off-balance sheet" item (subject to independent auditor approval). The outstanding debt is shown as a note on the balance sheet and you deduct rentals as an operating expense.
What assets can be financed with Flexi Rent?
  • Personal motor cars
  • IT and office equipment
How does Flexi Lease work?
  • Deduct your rentals from tax and structure payment schedules according to your needs.
  • Enjoy the flexibility and structuring of rentals, interest rates and term.
  • You have the choice of monthly, quarterly or annual rentals structured to suit your cash flow.
  • It eliminates the need to pay VAT up-front. You only pay VAT on each rental when it is due.
  • You can structure rentals with a final balloon payment to match your cash flow.
  • Enjoy flexibility that allows for early termination.
  • The lease deducts interest cost as well as any capital allowances (wear and tear).
What assets can be financed with Flexi Lease?
  • Motor vehicles including trucks and delivery vans, buses and other passenger vehicles
  • Tractor heads and trailers
  • Agricultural equipment (such as combine harvesters, tractors and accessories)
  • Construction and earthmoving vehicles (such as forklift trucks)
  • Industrial and manufacturing plant equipment
  • IT and office equipment
  • Aircrafts
  • Cranes and hydraulic self-propelled equipment

 

How does Flexi Buy work?

Flexi Buy allows you to purchase assets over a term without having to pay an option-to-buy fee.  

  • You repay the capital plus interest charges over the agreed finance term. The ownership of the asset automatically passes to you upon final payment (unlike hire purchase, there is no option fee to acquire ownership).
  • Income tax treatment means you deduct the interest cost, as well as any capital allowances (wear and tear), as if you own the asset outright.
  • VAT treatment: The seller charges the full VAT on the cost price, including interest. You are able to claim the full VAT input.
  • Accounting treatment means the asset is recorded as an "on-balance sheet" item. The outstanding debt is shown as a liability and you deduct depreciation and the interest cost.
What assets can be financed with Flexi Rent?
  • Personal motor cars
  • IT and office equipment

 

Documents required to apply for asset finance:
  • Application (registered resolution to obtain facility)
  • Business plan or company profile
  • 3 years’ audited financial statements and most recent management accounts
  • Cash flow projections, projected income statements and balance sheet for the finance period
  • 12 months’ bank statements
  • Pro-forma invoice of equipment or vehicle to be financed addressed to Absa
  • Certified memorandum and articles of association
  • Particulars of directors and secretaries (for non-Absa clients)
  • Annual returns and tax clearance
  • VAT registration certificate
  • Company profile
  • Valid trading license
  • Proof of equity contribution
  • Copy of financial card for the company and signatories/directors
  • Certified certificate of incorporation
  • Tax identity number (TIN) document for the company
  • Proof of income
  • CVs of directors
Need more help?

Call us on:
+260 (211) 366100 (available Monday to Friday from 08:00-16:45)
5950 (Toll free on Airtel and MTN only)

Email us:
customerservice.zm@absa.africa