Abstract: . . .  brought further specialization to leasing. Today, thousands of businesses that are long on ideas and short on cash are using leasing as a simple and flexible financing solution to increase productivity and generate profits. Innovations in Microfinance Leasing: A New Option for Microfinance Institutions TECHNICAL NOTE NO. 6 Released 10/2000 This series showcases innovative microfinance programs from the February 2000 “Advancing Microfinance in Rural West Africa” conference held in Bamako, Mali. The . . .
. . .  financing technique that MFIs can use to reach those enterprises with financial needs that cannot be satisfied by traditional microfinance approaches. X. G LOSSARY Acquisition price: An asset's purchase price, with the ownership rights passing to the new owner. Amortization: A breakdown of periodic loan payments into principal and interest portions. Bargain purchase option: An option to purchase the equipment at a price significantly below market value at the end of the lease. Page 11 11 Bamako 2000: . . .
. . .  microfinance approaches. X. G LOSSARY Acquisition price: An asset's purchase price, with the ownership rights passing to the new owner. Amortization: A breakdown of periodic loan payments into principal and interest portions. Bargain purchase option: An option to purchase the equipment at a price significantly below market value at the end of the lease. Page 11 11 Bamako 2000: Innovations in Microfinance Depreciation: Allocating the asset's purchase cost over its useful economic life. Estimated useful . . .
. . .  Microenterprise Best Practices Project. ACCOUNTING AND FINANCE Amembal, Sudhir and Shawn Halladay. A Guide to Accounting for Leases. Salt Lake City: Amembal, Halladay & Isom, 1992. Amembal, Sudhir, Shawn Halladay, and Lynn Leary Meyers. Leasing Applications for the HP-12C. Salt Lake City: Amembal, Halladay & Isom, 1991.  . . .
. . .  Microfinance Jacqueline Bass and Katrena Henderson, Weidemann Associates, Inc., wrote this article based on a seminar by Asif Dowla, St. Mary's College of Maryland, and Jean Herve, FERT Association in Madagascar, at the February 2000 conference on “Advancing Microfinance in Rural West Africa” in Mali. The U.S. Agency for International Development's Office of Microenterprise Development made substantial contributions to this article. Dina Towbin, Weidemann Associates, Inc., provided editing support. This publication . . .
. . .  an additional cost that is then factored into each lease payment. 8. Market competition: Competition plays an important role in determining lease payments. Entry into the leasing market is relatively easy for independent leasing firms and financial institutions such as MFIs. However, independent leasing firms face the threat that a bank, which supplies the leasing company with funds, will, in turn, enter the market as a competitor. MFIs need to consider the likelihood of this situation as a risk . . .
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