Leasing Finance

In modern days leasing has now be­come an economic and financial reality of primary importance. It is the originality of the leasing techniques and its economical advantages, which has enabled it to enter the world of industrial investment in Pakistan and on the international scene.

Lease finance provides a significant source of funds for companies to acquire or use assets. Leasing provides additional earning opportunities to acquire assets and to get the inflows simultaneously out of the operations of the same assets. The ownership of the asset is vested with the Bank (lessor) and in return for rental payments, the client (lessee) has full use of the asset. Being a medium to long term mode of financing, it allows the lessee to use the funds for other profitable purposes which otherwise would have been tied up in case of immediate payment for purchase of the asset.