LFC‘s product range fulfills our customers’ needs across many industry sectors in Malawi.  We adopt a flexible approach and seek to design and tailor our products and services to meet the requirements of our customers. 

Although the company provides a wide range of products, asset finance remains its core business.  The following are the main products and/or services offered by LFC in Malawi.

• Leasing Schemes – though usually confused with Hire Purchase, a rule of thumb to observe is that in leasing, ownership of the asset being financed is vested in the lender or lessor (i.e LFC) and the right of use of the same is vested in the borrower or lessee.  This financing in LFC takes form of:

• Straight Financial Lease – this is where the customer would like to buy a brand new vehicle, equipment or machinery from an authorized/franchised dealer.  LFC will pay directly to the dealer on sight of an invoice from such a dealer.

• Lease Back – this is where there is need by the customer to release funds tied up in existing assets.  The customer sells the asset to LFC who in turn leases it back to the customer for a specified period. It is also known as Sale-and-Leaseback.

• Discounted Leases – this is similar to a straight finance lease.  The only difference is that the equipment or vehicle or machinery being financed is not new and the supplier is not necessarily an authorized/franchised dealer.

• Block Discount Lease – this facility enables the dealers or suppliers of assets to offer installment payment arrangements to their customers without adverse implication for the supplier’s cash flow.  LFC enters into financial leases with the customer acquiring the asset but with recourse to the dealer/supplier in case of default.

• Operating Lease – the intention on this type of financing is to provide usage and not ownership.  This type of financing can come with full maintenance or without it.  Unlike the other types of leases offered, ownership of the asset remains vested in LFC at the end of the lease period.

• Master Finance Lease – This is where the customer intends to purchase merchandise outside Malawi.  This could be a vehicle, machinery, equipment etc.  LFC will open a Letter of Credit in favour of the foreign supplier and pay directly to the foreign supplier.  The disbursal is temporarily secured by existing assets.  The agreement is then converted into a finance lease upon receipt, registration and commissioning of the merchandise.

• Business Loans – usually monies advanced for a fixed loan period secured over fixed property or fixed deposits, treasury bill certificates, share certificates or other similar security instruments.

• House Ownership Scheme – these are mortgage loans aimed at providing finance to our customers to enable them acquire residential or commercial property.

• Insurance Premium Financing – Financing of insurance premiums for clients thereby allowing such clients to spread payment of their annual insurance premiums over the period of time.

• Factoring – also known as Invoice Discounting.  LFC is able to advance cash against the security of customers’ debtors book thereby allowing the customers to free cash that is tied up in the debtors to more productive sectors of their business.

• Investments – accepting Fixed Deposits from clients at very competitive rates.

We also remain open on Saturdays from 8:30a.m to 11.30a.m.

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