Financial leasing is one of the sources of Capital Expenditure Financing through a relationship between the Lessor and the Lessee, where the Lessee is granted the right to utilize a particular asset owned by the Lessor within a specified period of time while paying periodic rental values to the Lessor, and the Lessee is entitled to own the leased asset at the end of the period.

1. An effective financing tool where liquidity is provided through a financing ratio up to 100% of the asset value.
2. Providing flexible repayment methods where rental instalments are designed according to the Lessee’s cash flows, whether increasing, decreasing or equal, as well as flexibility in payment frequency, whether monthly, quarterly, semi-annual. etc.
3. Execute Project/Business expansion through paying a fixed-term periodic rental instalments to end up owning the asset.
4. Financial Leasing provides innovative and easy-to-process products than regular banking products.

Yes, used assets can be leased and their value is determined according to the status of the asset as reported in the asset valuation report, which is conducted by external valuation offices accredited by the Egyptian Financial Regulatory Authority and/or the Central Bank of Egypt.

Inventory cannot be leased; moreover, Financial Leasing cannot be applied to current assets.

Financial Leasing Contract is a document regulating the relationship between the Lessee and the Lessor, who has agreed to lease specified owned asset(s) to the applicable Lessee, who in turn acknowledges usage of the leased asset as per the pre-approved purposes and activities and that the Lessee’s possession of the leased asset is temporary until the end of this contract or Lessee’s choice to purchase the leased asset at the end of the lease contract as per the related laws and regulations.

Operational Lease is the lease of the asset for a certain period during which the Lessee takes advantage of the asset, and the use of it, and the Lessee is not responsible for any damage or maintenance that occur to the asset, which is the responsibility of the Lessor (the Leasing Company), and therefore the contractual relationship between the Lessee and the Lessor is related to the Lessee’s ability to use the asset and pay the rental instalments with no purchase option at the end of the leasing contract.

The sale and Leaseback product is one of the financial leasing products, namely, the sale of equipment(s) or real estate assets (generally fixed assets) by the “Lessee” to the “Lessor”, whereby the Lessee re-utilize said asset through a lease contract. This helps Lessees to use the value of the asset in business expansion either cash flow, capital expenditure or both, and the Lessee pays the rental instalments over specific future interval of time as per their contractual agreement.

1. All types of machinery, equipment and production lines.
2. All types of heavy and light transport vehicles
3. All types of passenger and commercial vehicles.
4. Medical equipment / machines.
5. Real estate assets including administrative and commercial buildings.

The lease contract may be terminated by early settlement payment prior to the contract maturity. In case of partial payment, the remaining value shall be re-scheduled as per the terms of the contract, and the Lessee bearing all the costs of total or partial payment.

If the asset is new, the value is determined according to the value specified by the authorized agent / dealer’s quotation.
In case of used assets or real estate assets, the value of the asset is determined by external valuation accredited by both the Egyptian Financial Regulatory Authority and/or the Central Bank of Egypt.

Basic documents required:

• Recent Commercial Register (3 months)
• Copy of valid Tax Card.
• Copy of Company Establishment Documents.
• Copy of Corporate Gazette.
• 3 years Financial Statements.
• 5 years Business Plan.

Copy of Signatory(s) National ID/ Passport.