Asset Finance FAQs

What is Asset Finance?
Asset Finance is a product available to all dfcu Bank customers for the financing of movable
assets.

What Asset can be Financed?
Any good quality brand new or used assets including cars, trucks, buses, tractors,
manufacturing equipment, printing machines, earth moving equipment, solar equipment,
medical equipment, generators and many more.

What products are offered under Asset Finance?
• Finance Leases
• Consumer Asset Finance
• Insurance Premium Finance

Who qualifies for Asset Financing?
• Individuals who can practically demonstrate a steady source of regular income.
• Properly established businesses, soleprietors companies, partnerships, investments clubs with
steady cashflows to meet the installment payments.

What is the minimum Value of equipment that can be financed?
The financed amounts vary from UGX 50M to over UGX 15BN or USD equivalent.
However, amounts outside this range can be considered under special circumstances.

What is the minimum and Maximum finance tenor?
Minimum period is 12 months.
Maximum period is 60 months.

Who identifies the asset and the supplier?
The customer identifies the asset that meets their personal and business requirements.
The bank will however verify that :-
• It is of good and marketable quality
• It has a secondary market
• Supplier is reputable
• It is not overpriced

What is expected of the customer once takes on the financed asset?
The customer uses the asset and keeps it in a good working condition.

Can one have more than one asset financed?
Yes, one can have more than one asset financed provided they have adequate cashflows to
maintain the repayments.

What repayment options are available?
Repayments are structured to match the cashflow of your business for instance.
monthly, quarterly, termly, semiannually, and annually.

Does one have to be a dfcu customer to qualify for Asset Finance?
No, one does not have to be a customer to qualify for Asset Financing. However,
you will be required to open an account with dfcu on approval of the facility.

What security should one provide to secure an Asset Finance Facility?
The primary security for Asset Finance is the asset that is financed for which we provide
up to 90% depending on the age and type of the asset.

Does the Bank give the customer cash to purchase the asset?
No, the Asset Finance facility proceeds are paid directly to the supplier’s account.

What happens when the financed asset develops a mechanical problem?
From the start the client is responsible for choosing the asset from the supplier so you have
to be cautious of the quality.
You will be responsible for maintaining the asset in good mechanical condition. We will
carry out routine inspections to make sure the asset is maintained properly. The client is
expected to meet the full cost of repair should there be a mechanical breakdown.

When does the customer start making the repayments for overseas purchases?
The customer starts making repayments after receiving the financed asset from the supplier.
However, over the period the asset is be delivered, the customer will be charged pre-delivery
Interest which may be paid on receipt of the asset of capitalized as part of the principal facility
amount.

What happens if the customer can not afford to pay for comprehensive Insurance?
The bank can grant the customer an Insurance Premium Finance (IPF) facility to cater for the
upfront Insurance premium payment. This facility revolves for the duration of the Asset Finance
Facility and is payable within a period of 10months at very attractive fixed interest rates.