It's about efficiency and adequate cash cycles

Leasing allows you to meet your goal of growing tomorrow without overstretching your cash position today - regardless of whether your growth hinges on a new factory, machinery, vehicles, information technology or medical equipment.

There are plenty of benefits to leasing rather than buying something outright, including:

  • Reducing your up-front cash outlay by spreading an expense over a longer period of time
  • Flexibility: We'll help you tailor your payments to accommodate your company's cash flows. Payments could be tailored to be monthly, quarterly, semi-annually or annually in addition to having a flexible structure as step-up, step-down, fixed, balloon or seasonal instalments
  • Working with a single financing house (that's us) to arrange a package of assets and minimize the administrative burden of dealing with multiple suppliers
  • High-quality advisory: Odds are good that whatever transaction you're contemplating, we've done one like it before, leaving you ideally positioned to benefit from our base of institutional knowledge and experience.
  • If you're looking to work with one of our Vendor Partners, our relationship may give you better access to maintenance and additional value-added services
  • Peace of mind: All of our leases can include insurance coverage if necessary

What's more is that certain types of leasing allow you to present a healthier balance sheet to banks on those occasions when you have no choice but to seek bank debt; your monthly payments are classified as business expenses, not liabilities or long-term debts. In fact, under Egyptian Accounting Standards, all leasing activities are by definition "Off-Balance-Sheet Transactions".

In addition to being cash flow-friendly and enhancing your borrowing capacity, leasing can:

  • Recognize income tax savings
  • Tackle existing cash flow mis-matches through sale and lease back transactions
  • For new businesses, negotiate a step-up mechanism, so your payments are modest at the beginning and rise in value over time
  • For existing businesses with stronger cash flows, go for a step-down arrangement with higher initial payments
  • Plan for the obsolescence of assets in a disciplined way
  • Save time: The documentary requirements for leasing are substantially less than those required for bank loans.

Did we mention we are a partner?

We're here to help, not bury you in paperwork. We look for reasons to approve your business case, as we believe character counts. We view every new relationship as the start of a long-term journey, whether you're looking to acquire common office equipment or highly specialized machines.

  • We're faster than banks
  • We employ a quantitative and qualitative criteria that is both unique and timely
  • We specialize in working with corporations of all sizes, as well as SMEs
  • Our flexibility helps you avoid cash flow mis-matches

Leasing vs. Bank loans

Lease Bank loan
Simple application Extensive documentation required
Frees up capital Reduces available credit lines
Hedge against inflation Extensive additional collateral
Flexible, can match your cashflow cycle Not flexible
No additional collateral Maybe cancelled by lender
Potential tax advantages
Easy add-ons and trade-ups
Preserve credit lines
No or minimal down payment
Easier budgeting
Lower fees

Why Pay Cash?

Generally speaking, paying cash for an asset rather than seeking external financing:

  • Disregards the time value of money
  • Depletes cash reserves
  • Has a negative impact on the balance sheet
  • Reduces cash position