The verdict in three sentences
Leasing lets you use equipment for a monthly rent, without pulling the purchase price out of your cash. The effective rate is around 9 to 14%, the deposit often 10 to 20%, over 24 to 60 months, with a final purchase option at a low residual value. Key benefit: rents are generally deductible, easing the tax bill compared with an outright purchase.
Leasing, credit or cash: the 20 M FCFA showdown
For the same equipment, the financing mode radically changes the cash impact. Example on a 20,000,000 FCFA asset, 2026 order of magnitude:
| Criterion | Cash purchase | Classic credit | Leasing |
|---|---|---|---|
| Upfront outlay | 20 M FCFA | deposit ~20% (4 M) | deposit ~15% (3 M) |
| Monthly payment | 0 | ~360,000 FCFA / 60 mo | ~395,000 FCFA / 60 mo |
| Owner | you, day 1 | you (pledged asset) | lessor until option |
| Tax benefit | depreciation | deductible interest | deductible rents |
| Cash impact | very heavy | medium | light |
| Final option | - | - | residual-value buyback |
Leasing costs slightly more in total, but it preserves your cash and borrowing capacity for other needs.
Understanding the total cost
Beyond the monthly payment, the real cost reads over the full term and the purchase option. Indicative breakdown:
| Element | 2026 range | Note |
|---|---|---|
| Effective rate | 9 - 14% | by profile and asset |
| Deposit / security | 10 - 20% | sometimes 0 on strong files |
| Term | 24 - 60 months | matched to asset life |
| Residual value (option) | 1 - 5% | final buyback price |
| Arrangement fee | 1 - 2% | once at start |
| Asset insurance | variable | often required |
A fast-depreciating asset (IT, vehicles) suits leasing especially well; a durable asset may justify buying.
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Mini case study
Fatou, who runs a print shop in Dakar, finances a digital press at 20,000,000 FCFA via a 48-month lease. Deposit of 3,000,000 FCFA (15%), monthly rent of about 460,000 FCFA, final purchase option at 600,000 FCFA. With deductible rents, she cuts her taxable profit by about 5,520,000 FCFA a year, while keeping cash to buy paper and pay wages.
FAQ
What's the difference between leasing and classic credit? With leasing, the lessor stays owner until the final purchase option; with credit you own from day one, the asset serving as collateral. Leasing preserves cash better.
What effective rate in 2026? Order of magnitude 9 to 14% depending on the company profile and asset type. Vehicles and IT are often the best financed.
Do I need a deposit? Often 10 to 20%, sometimes none for very strong files. A higher deposit lowers monthly rents.
Are rents deductible? Yes, that's one of leasing's strengths: rents generally count as deductible expenses, easing corporate tax.
Leasing or cash purchase? If your cash is tight or the asset depreciates fast, leasing often wins despite a slightly higher total cost. For a durable asset and ample cash, paying upfront can do.
Let's talk about your project. We equip your business with a website and online tools while leasing finances your hardware. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
