The verdict in three sentences
Leasing finances equipment against a monthly rental and a reduced down payment of 10 to 30%, while keeping your cash for operations. You do not own the asset during the contract, but a final purchase option (often nominal) transfers it to you. It is the ideal tool when the equipment generates revenue from month one: it partly repays itself.
Cash purchase, leasing or credit: the comparison
Three ways to get hold of equipment, three very different impacts on your cash and balance sheet.
| Criterion | Cash purchase | Leasing | Classic credit |
|---|---|---|---|
| Initial outlay | 100% | 10 to 30% | 20 to 30% |
| Term | Immediate | 12 to 48 months | 12 to 60 months |
| Ownership during contract | You | The lessor | You |
| Cash impact | Very heavy | Light and smoothed | Medium |
| Final purchase option | N/A | Yes (residual value) | N/A |
| Tax benefit | Depreciation | Deductible rentals | Deductible interest |
| Best for | Plenty of cash | Preserving cash | Asset to keep long term |
Calculation on a 5,000,000 FCFA asset
Take the same oven/vehicle/server at 5,000,000 FCFA, financed over 36 months, to compare the real effort.
| Scenario | Immediate outlay | Monthly payment (estimate) | Total paid (order of magnitude) |
|---|---|---|---|
| Cash purchase | 5,000,000 FCFA | 0 | 5,000,000 FCFA |
| Leasing (20% down) | 1,000,000 FCFA | ~135,000 FCFA | ~5,860,000 FCFA + option |
| Credit (25% down, 11%/year) | 1,250,000 FCFA | ~123,000 FCFA | ~5,680,000 FCFA |
Leasing costs a bit more overall, but frees up 4,000,000 FCFA of cash on day one, money the SME can invest in stock or marketing.
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Mini case study
Khady, who runs a delivery SME in Dakar, wants to buy a van for 5,000,000 FCFA. In cash, she would drain her treasury. With leasing, she puts down 1,000,000 FCFA and pays 135,000 FCFA/month over 36 months. The van earns her about 400,000 FCFA/month in revenue: the payment is amply covered. She keeps 4,000,000 FCFA to hire a second driver and exercises the purchase option at the end. The equipment financed its own rental.
FAQ
What down payment for leasing in 2026? Generally 10 to 30% of the asset value (2026 order of magnitude), far less than a cash purchase and often less than a classic loan.
Do I own the equipment? Not during the contract: the lessor stays the owner until you exercise the purchase option, usually for a low residual value.
Is leasing more expensive than a loan? Often slightly, but it preserves cash and rentals are tax-deductible, which lowers the real net cost.
Can I lease digital equipment? Yes: servers, IT fleets, payment terminals and professional gear are eligible for leasing at several institutions.
Leasing or FONGIP? FONGIP guarantees a purchase loan; leasing avoids the purchase. For a high-use, low-obsolescence asset, a FONGIP-guaranteed loan can be more advantageous long term.
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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.
