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Financial Leasing

Leasing Services

Finance leasing is an important source of medium and long-term financing, where it plays an effective economic role by supporting the development of the productive asset base of tenants in general, which increases the ability of local economic enterprises to compete globally and keep pace with development.

A finance lease is a means of financing under a contractual agreement between the lessor and the lessee. One of them grants the right to use the asset owned by the other party against periodic installments for a specified period of time and the ownership of the leased property at the end of the contract period is transferred to the lessee automatically or for an agreed amount with the possibility of purchasing the asset leased during the contract period.

In the finance lease, the leased company purchases the asset or equipment required to be purchased and registered in its name, and then transfers its possession to the lessee who uses it against specific payments. Thus, the financial lease enables the enterprises to acquire the necessary assets for their activity without the need to invest a large amount of capital. Owing to the ownership of the lessee's leased asset, there is less need for a large volume of collateral, as is the case with bank financing.

The existence of a clear and effective legal framework that would regulate the relationship between the parties of financial leasing is one of the most important advantages of this type of financing.

The growth rate of leasing activity increased by 26% over the previous year

Advantages of Leasing:

The leasing activity offers several advantages, the most important of which are:

  • Taking into consideration the customer's cash flows when calculating the finance lease installments.
  • Provide financing alternatives for the customer (providing the raw materials needed for customer projects).
  • The possibility of making use of early repayment. Expedited "early purchase" payment.
  • The lessee may, with the consent of the lessor, assign the contract to another lessee.
  • Gives an opportunity to diversify the funding sources available to the project.
  • Provides additional advantages for project cash flows.
  • Companies can acquire the necessary capital assets for their business without having to freeze a large part of their funds if they buy them, providing the necessary funding, allowing them greater liquidity that can be used in other areas of activity, especially the financing of the working capital cycle.
  • Allows the company to choose between owning the asset or not.
  • Leasing financing terms are very flexible and are based on customer cash flows.
  • Speed decision and grant-making, saving time and effort for business owners.
  • Is a means of taking advantage of rental values paid in leased assets where the acquisition of assets at rental values at the end of the lease term is an alternative to the (traditional) operating lease, in which the lessee does not benefit from rental values paid.
  • Leasehold expenses and expenses for maintenance and repair of leases of the costs to be deducted from the profits of the lessee.
  • The lease amounts shall not be taxed on the services provided for under the General Sales Taxes Law.
  • Contracts for the ownership of the money transferred to the lessor from the lessee are waived from the registration fees of the Real Estate Office.

Technolease acquires market share of 14%

Financial Leasing Options:

  • Computers (Systems and Operating Software).
  • Production lines.
  • Real estate (commercial and administrative) with special terms for companies different from the nature of mortgage legally authorized for individuals.
  • Machinery and equipment.
  • Other assets.

Laws regulating financial leasing: