Product Description
Purpose: To finance the purchase of machinery to Corporations.
Lease Amount: Minimum amount of LE 500,000.
Tenor: Up to 7 years.
Payment: Can be Monthly or Quarterly in advance.
Percent of Financing: 90 % (subject to credit analysis)
Types of Lease Finance
Purchase of New machinery.
Sale and Leaseback of existing machinery.
General Terms and Conditions
Title of asset must be in the name of Corplease.
Leased asset must be free and clear of any liens or mortgages, pledges, encumbrances, deeds of trust or similar.
If the assets are new then Lessor will undertake the purchase (local or foreign) process based on the written instructions and the specifications provided by the Lessee and after completion of all documentation required.
Lessee will ensure that leased assets are maintained in excellent operating condition consistent with prudent industry practice and manufacturer’s instructions.
Lessee has the option to purchase the leased assets for LE 1.00 at the end of the lease term.
Lessee has the right to purchase the asset at any point of time during the leased period by paying the net present value of the remaining rents.
All leases are registered with GAFI.
According to Egyptian Accounting Standards all leases are recorded as off balance sheet for the Lessee.
Lessee must maintain an all risk insurance policy in favor of the Lessor stating the following conditions:
Download Leasing Application
F A Q
Q. Can the assets be imported through leasing?
A. Yes.
Q. For a sale and leaseback transaction how do we determine the value of the leased assets?
A. Usually the asset is valued according to its net book value in order to avoid any capital gain or loss. However, in some cases we can determine the market value of the asset by hiring specialized evaluation firms.
Q. What are the leasing documents required to close a leasing transaction?
A. The basic leasing documents are the following:
1. Lease Contract.
2. Transfer of title (Invoice).
3. Acceptance certificate.
4. Irrevocable debit instruction for the lease rent.
5. Other documents as maybe required or on a case by case basis.
Q. What are the corporate documents required?
A. The standard corporate documents are:
- Commercial Register (not older than 3 months).
- Copy of Tax Card.
- Copy of Authorized signatories ID or valid passport.
- Articles of Incorporation.
- Relevant Business licenses.
- Audited financial statements for the past 3 years and latest modified interims .
Q. What are the Lessee’s options at the end of the lease term?
A. In a finance lease the Lessee can exercise one of the following options:
1. Acquire the asset by paying a nominal value of LE 1
2. Return the asset to the Lessor.
3. To renew the contract (based on Lessor’s approval)
Q. Can the lease contract be terminated?
A. Yes the Lessee must pay the net present value of the future lease payments.
Q. Can there be a grace period in leasing?
A. Yes based on the company's cashflow.
Q. What is the payment method?
A. The usual payment method is through an irrevocable standing order instruction on the Lessee's bank account to transfer lease rents to CORPLEASE.
Q. Who bears the insurance and maintenance costs?
A. The Lessee. These costs can be included in the Lessee’s rental payments.
Q. In a sale and leaseback transaction how is the equipment title transferred?
A. The Lessee will issue an invoice transferring the title of the asset to CORPLEASE.
|
