HOW TO START EQUIPMENT LEASING BUSINESS
Friend, are you here because you are looking for a profitable business in Nigeria that will earn you a steady income with little or no startup capital?
If yes then I will implore you to continue reading because in this article I will show how to start a profitable Equipment leasing business in Nigeria even if you don’t have equipment of your own.
HOW TO START AN EQUIPMENT LEASING BUSINESS
With the current harsh economic condition in Nigeria, Equipment used in Manufacturing, Agriculture, construction, electrical, Event management, Maritime, music, Movie, oil, and Gas industries has become very expensive to purchase and to replace when faulty.
That’s why most companies and individuals now prefer to rent or lease such equipment for use periodically instead of spending hard-earned money to purchase a new one.
I will like to let you know that the equipment leasing business in Nigeria is a money-spinning venture, this is due to the fact that most companies in the country are trying hard to reduce costs thus they go for the equipment lease options to maximize profit.
BENEFITS OF EQUIPMENT LEASING IN NIGERIA
- The equipment leasing business in Nigeria is one profitable way of generating a steady income.
- It can provide employment for more unemployed Nigerians.
- Equipment leasing is one great way that helps companies save money by reducing costs.
- Leasing equipment is by far easier business in Nigeria than going for a bank loan to purchase new equipment.
- It’s also easier for companies to upgrade with equipment leasing without having to purchase new equipment.
- With Equipment leasing, you can avoid the usual risks and costs associated with owning equipment.
Do you currently have the following equipment listed below?
: Farm tractors, Heavy duty electricity Generators, building and construction equipment, Oil tanker vessels, Oil Drilling Rigs, music/sound equipment, movie cameras, etc.
If yes then, the challenge involved in starting your own Equipment leasing Business in Nigeria is halfway solved because you have already met 90% of the requirement for setup.
With the equipment listed above, you can make a huge profit anytime you lease them out to companies and individuals.
* If you have an excavator or Crane, you can lease it to construction companies in Nigeria and they will pay you nothing less than N160, 000/day and over 1 million daily respectively.
*If you have a 100kva generator and above, you could get paid about N140, 000/day when you lease it out to event management companies in Nigeria to use as an alternative to the public power supply.
*If you have for example a 5000kmt Oil tanker vessel, you could make more than $10,000/day and $300,000/ when you lease out it to oil companies in Nigeria.
* Also, if you have a Land drilling oil rig or Swamp oil drilling rig, you can make nothing less than $35,000/day and $85,000/day ( Possible millions of Dollars/ month) respectively when you lease these oil rigs to big oil companies like Mobil, Chevron, Shell, and Agip, etc.
* If you own a farm tractor you are sure to make at least N10, 000/day when you lease it out to farmers to cultivate their farmland.
Also, below is how to Start Equipment Leasing Business in Nigeria with zero startup capital and equipment.
To make a profit from Equipment Leasing Business in Nigeria, if you lack capital, is to become a broker by that you connect owners to companies that want to hire/lease equipment and get paid a commission for a job well done.
And as a broker, if you stay focused, work hard, and patiently increase your market value, I can assure you that in a short while you will be able to raise enough money to buy the needed equipment you can lease out and make maximum profit.
To start and make a huge profit from the Equipment leasing business in Nigeria, below are the requirement and steps to follow to achieve your objectives.
SET UP REQUIREMENTS FOR EQUIPMENT LEASING BUSINESS IN NIGERIA.
Chose Equipment Leasing Business type you want to start
There are different branches of Equipment leasing business you can go into in Nigeria, it ranges from Farming equipment leasing to construction equipment, so it’s advisable you decide and chose the particular type of industrial equipment you would want to start leasing out.
Get your Equipment Leasing Business Registered.
To do business freely in Nigeria you must register your business with the Corporate Affairs Commission (CAC). Failure to register means that government agencies and potential clients will tag your company as Illegal and may be afraid to transact business with you.
So please try and get your Equipment leasing business registered in Nigeria with the Corporate Affairs Commission (CAC) and preferably register a Limited liability company.
Open a Business Bank Account
After registering your business, I will advise you to open a business account with any bank of your choice in Nigeria. Having a bank account for your business will make it very easier for you to keep track of cash flow in and out of your business.
Startup Capital Needed
Starting an equipment leasing business in Nigeria is capital intensive but one is sure to make a high return on investment over time. The initial capital required for setting up an equipment leasing company varies depending on the types of equipment and the cost of purchasing them.
You can start with equipment that is less expensive e.g. 100kva generator will require less capital while if you want to start leasing heavy-duty equipment like Tractors, excavators, oil vessels, and oil Rigs this will cost you hundreds of millions of Naira, if not billions.
However, if you lack startup capital, I will advise you to become a broker and gradually raise the funds needed to do it big or alternatively approach your bank for a loan.
Purchase The Required Equipment:
After registering your business with CAC and also opened a bank account for your business, the next step to take is to visit any reputable equipment dealer and purchase the equipment needed to start your leasing business.
NOTE: You will need to buy the equipment that is frequently in demand so that your hard-earned money is used in the most cost-effective manner.
Secure a Suitable Location to Site your business
For smooth operation, you will need to choose a suitable location and buy/rent a piece of land there to site your Equipment leasing business. The place must be spacious enough to accommodate an office for you and your staff and also provide a space to keep your equipment.
Employ skilled workers:
To get a high return on your investment you will need to employ skilled engineers and effective salesmen and women.
The duty of these engineers will be to ensure that your equipment is well maintained for peak performance and that the salesmen and women are to market and bring in more clients to hire your equipment.
Market Your Equipment Leasing Business:
Marketing is very important if you want to succeed in the business, it will be of no benefit if people are not aware the equipment you purchased is for hire or lease.
There are many ways to market your business; you can do that by placing advertisements on radio, Television, newspapers, social media, and through your company website.
You can also create awareness for your equipment through business-to-business marketing.
For example, your sales personnel can reach out to event planners for generator rentals and reach out to contractors, construction, and mining companies for construction equipment rentals.
From all the vital points stated in the article above, I believe you now know why the equipment leasing business in Nigeria is very profitable. To make millions from the business, I will advise you to take quick action before the idea gets cold.