Product Overview
Asset Financing helps you acquire essential business assets (equipment, vehicles, machinery, technology) without depleting your working capital. We finance the purchase of business-critical assets, and you repay over time through manageable installments. The asset itself serves as collateral for the loan.
⚠️ Eligibility Requirements
Before applying, ensure your business meets these minimum requirements:
✅ Location: Operating in Lagos State (mandatory)
✅ Monthly Turnover: Between ₦1 million and ₦100 million
✅ Operating History: At least 2 years in business
✅ Business Registration: Legally registered business entity (Sole Proprietorship, Partnership, or Corporation)
✅ Business Banking: Dedicated business account with 6+ months history
✅ Industry: Operating in an approved industry sector (see below)
✅ Financial Separation: Personal and business finances must be separate
⚠️ Important: Kuda Business loans are only available to businesses operating in Lagos State. If your business operates outside Lagos State, you are not eligible for our business loan products at this time.
Approved Industries
We provide Asset Financing to businesses in the following sectors:
Primary Target Markets:
- Accommodation and Food Service Activities
- Hotels and accommodation services
- Restaurants and food services
- Cafes and bars
- Wholesale and Retail Trade
- Wholesale trade (except motor vehicles)
- Retail trade (stores, mini-marts, convenience stores)
Secondary Target Markets:
- Information and Communication
- Agriculture, Forestry and Fishing
- Administrative and Support Service Activities
- Manufacturing (ISIC Section 3) - Food, beverages, textiles, and apparel
Note: If your industry is not listed above, please contact [email protected] to discuss eligibility.
How It Works
1. Identify Your Asset Need - Determine the equipment, vehicle, or machinery your business needs
2. Get Vendor Quotes - Obtain quotes from reputable vendors/suppliers for the asset
3. Apply for Financing - Email [email protected] with asset details, vendor quotes, and your business information
4. We Assess Your Application - We review your business financials, the asset value, and your repayment capacity
5. Asset Evaluation - We may evaluate the asset to confirm its value and suitability
6. If Approved, We Provide Financing - We finance a percentage of the asset value (you may need to provide a down payment)
7. You Acquire the Asset - Purchase the asset from the vendor (we may pay directly to the vendor)
8. Repay Over Time - Make monthly installments over the agreed tenor (typically 12-60 months)
9. Ownership Transfer - Once fully repaid, ownership of the asset transfers to you
Who's It For?
Asset Financing is ideal for:
- Manufacturers needing production equipment, machinery, or manufacturing tools
- Transport and Logistics businesses requiring commercial vehicles, delivery vans, or trucks
- Retailers expanding with new store fixtures, POS systems, or inventory management equipment
- Hospitality Businesses upgrading with kitchen equipment, furniture, or technology infrastructure
- Service Providers investing in technology, IT infrastructure, or specialized equipment
- Growing Businesses scaling operations with essential business assets
Key Requirements:
- Business must operate in Lagos State
- Monthly turnover between ₦1m - ₦100m
- Clear business need for the asset
- Ability to make regular monthly repayments
- Asset must be business-critical and verifiable
The Nitty-Gritty
Eligible Assets
We can finance the following types of business assets:
✅ Manufacturing Equipment and Machinery
- Production equipment
- Manufacturing machinery
- Industrial tools and equipment
- Quality control and testing equipment
✅ Commercial Vehicles
- Delivery vans and trucks
- Commercial vehicles for transport
- Specialized vehicles for business operations
- Fleet vehicles (subject to approval)
✅ Technology Equipment and IT Infrastructure
- Computer systems and servers
- POS systems and payment terminals
- Network infrastructure
- Software and technology licenses (subject to approval)
✅ Office Furniture and Fixtures
- Office furniture and fittings
- Store fixtures and displays
- Signage and branding equipment
✅ Other Business-Critical Assets
- Specialized equipment for your industry
- Tools and equipment essential to operations
- Other assets (subject to individual assessment)
Note:
Assets must be:
- New or used (condition and value will be assessed)
- Verifiable and legitimate
- Essential to your business operations
- Properly documented with ownership/registration
Financing Structure
Financing Amount:
- Up to a percentage of asset value (contact [email protected] for current limits)
- Percentage depends on:
- Asset type and value
- Your business financial strength
- Asset condition (new vs. used)
- Industry risk factors
Down Payment:
- Minimum down payment required (contact [email protected] for current requirements)
- Down payment percentage varies based on:
- Asset type
- Asset value
- Your business credit profile
- Risk assessment
Tenor (Repayment Period):
- Typically 12-60 months, depending on:
- Asset type and expected useful life
- Asset value
- Your cash flow capacity
- Business needs and preferences
Repayment:
- Monthly installments
- Fixed or variable rates (terms provided upon approval)
- Automatic deduction from your Kuda Business account (preferred)
Ownership:
- Asset serves as collateral during the financing period
- Ownership transfers to you upon full repayment
- You have use of the asset during the financing period
- Insurance may be required (discuss with sales team)
Interest Rates and Fees
Interest Rates:
- Competitive rates based on:
- Asset type and value
- Financing amount and tenor
- Your business risk profile
- Market conditions
*Contact [email protected] for current interest rates*
Other Fees:
- Processing Fee: May apply (details provided upon application)
- Asset Evaluation Fee: May apply for certain asset types
- Insurance: May be required (discuss with sales team)
- Late Payment Fees: Apply if installments are missed
- Early Repayment: Terms vary (discuss with sales team)
Note: All fees and interest rates will be clearly disclosed before you accept the financing offer.
Things to Know
Benefits
✅ Preserve Working Capital: Keep cash flow available for daily operations
✅ Tax Benefits: Interest payments may be tax-deductible (consult your tax advisor)
✅ Flexible Repayment: Choose repayment terms that match your cash flow
✅ Build Business Assets: Acquire essential assets to grow your business
✅ Competitive Rates: Attractive financing terms for qualified businesses
Important Considerations
⚠️ Asset as Collateral: The asset serves as security; default may result in asset repossession
⚠️ Down Payment Required: You'll need to provide a down payment upfront
⚠️ Insurance Requirements: Asset insurance may be mandatory
⚠️ Maintenance Responsibility: You're responsible for asset maintenance and insurance
⚠️ Ownership Transfer: Full ownership only after complete repayment
Frequently Asked Questions
Q: What percentage of the asset value can I finance?
A: Contact [email protected] for current financing limits. The percentage depends on asset type, value, and your business profile.
Q: Do I need to provide a down payment?
A: Yes, a down payment is typically required. The amount depends on asset type, value, and your business credit profile.
Q: Can I finance used assets?
A: Yes, we can finance both new and used assets. The condition and value will be assessed.
Q: How long is the repayment period?
A: Typically 12-60 months, depending on asset type, value, and your cash flow capacity.
Q: What happens if I can't make a payment?
A: Contact us immediately. Late payment fees may apply, and we'll work with you to find a solution.
Q: Can I pay off the loan early?
A: Yes, early repayment terms vary. Discuss with [email protected] for specific terms.
Q: Do I need insurance for the asset?
A: Insurance may be required depending on asset type and value. This will be discussed during the application process.
Q: Can I finance multiple assets?
A: Yes, multiple assets can be financed. Contact [email protected] to discuss your needs.