What is leasing? Leasing means an agreement between the leasing company (called lessor) and the user (called lessee), under which the former undertakes to buy the capital equipment for use by the latter. The lessor remains owner of the asset during the specified period. The lessee has to pay rentals to the lessor.
Financial Lease: This lease is for a basic term during which the agreement cannot be cancelled or changed. The length of this basic term depends on fiscal, regulatory and banking regimes from country to other country.
Why we should go for Leasing? Leasing offers the following advantages: Liquidity:
The lessee can use the asset to earn without investing money in the asset. He can employ his funds for working capital needs.
Convenience: Leasing is the easiest method of financing fixed assets. No mortgage or hypothecation is required. Restrictions involved in long-term borrowing from financial institutions are avoided. Formalities involved in leasing are much less than in case of borrowing from financial institutions.
Hidden Liability: Lease obligations are not reported as a liability in the companys balance sheet. On the other hand, loans raised to buy assets are reported as liability. Thus, leasing helps the lessee to report a better debt-equity ratio.
Cost Saving: Lease rentals are deductible from taxable income. The lessee has lower obligation in bankruptcy than under debt financing.
Flexibility: Leasing arrangement is more flexible. The rental schedule can be adjusted to accommodate genuine needs and problems of the lessee.
Targeted Segments We provide a unique and flexible medium term asset financing (Financial Lease) to all productive and effective sectors which enhances the overall local economy cycle.
We can lease all kind of assets which can enhance the economic cycle of our customers and business operations.
Industrial sector (e.g.General Machinery, forklifts, generators, compressors, equipment, production lines)
Trading and commercial sector (e.g.Pick-ups and Forklifts, equipment, vehicles)
Transportation and logistics Sector (Commercial Vehicles: e.g. Trucks and Busses)
Construction sector (e.g.Cranes, Excavators, Forklifts, commercial vehicles)