BUSINESS CASE

OLAF-GINA Logistics Ltd, being a company registered in Nigeria, is desirous of setting up a hire purchase
services with the following business model:

1. OLAF-GINA bears the full cost of the vehicle in question

2. The asset purchased will be in the name of OLAF-GINA Logistics
3. Total cost includes: the cost of purchase, registration, and other incidental cost to make the
vehicle business worthy
4. The client will pay an upfront security deposit equivalent to 10% of the total cost
5. The client is expected to make weekly rentals to liquidate both principal and interest element
6. OLAF-GINA reserves the right to recover the asset if the client fails to make 3 straight weekly
instalments
7. OLAF-GINA will deduct the weekly instalment from the security deposit incase of any weekly
default.
8. The client is expected to top the security deposit incase item 7 occurs
9. In case of recovery OLAF-GINA reserves the right to sell of the assets and recover its full cost
from the sales value
10. The asset will revert to the client upon the full payment of both principal and interest
11. Client can pay down earlier than the scheduled date (no interest waiver)
12. Maintenance of the asset is by the client-However the client can apply to the company for major
repairs (the cost will be capitalised as loan to the client)
13. OLAF-GINA can request for inspection of the asset to ascertain its existence.

CONTRACT TERMINATION

1. The contract will be terminated upon the full payment of both the principal and interest
2. Upon the recovery of the asset due to non-payment of three straight weekly instalment
3. If the client is using the assets for illegal activities