To fulfill the needs and requirements of various segments and groups of clients, Bank of Jordan set up a specialized department that provides financial leasing services, enabling customers to finance all types of assets. A specialized team of experienced and highly qualified banking staff was formed to advise customers on the most ideal financing methods that ensure growth, expansion and better productivity of projects in order to yield higher returns and profits.
What is leasing:
Basically, financial leasing depends on assets. As such, it is a contract that allows a lessee (client) to utilize a fixed asset of his/her choice and one that fits his/her activity (leased object) against installments agreed upon during a certain specific period of time. The installments are paid to the bank (lessor) on the understanding that the ownership of the leased object will be transferred to the lessee automatically at the end of the contract or upon the lessee paying a certain amount of money upon the end of the contract.
Advantages of leasing:
- Finance leasing is a finance tool that allows financing of all fixed assets without a ceiling and with minimum guarantees, as the basic security is the asset and the economic feasibility
- The leasing period corresponds with the productivity life of the leased asset, with flexible leasing installments
- Encourages continued modernization of assets to keep up with technological advancements
- A financing tool that suits clients who do not prefer using traditional financing methods
- Possibility of financing up to 100%
- Selling and then finance leasing whereby the client sells a fixed asset he or she owns (car, truck, production line) to the bank which, in turn, leases the same asset to him or her. This way, the client can collect a sum of cash to finance other assets or other operations like purchasing raw materials or paying rent
- Possibility of adding maintenance costs, comprehensive insurance and any other expenses to the leasing installment
- Transferring the leasing contract by the lessor and the lessee to another party
Beneficiaries from leasing services:
- All institutions, companies and factories of any legal form
- Entrepreneurs of various vocations and owners of established or new industries
- Employees, doctors, lawyers and engineers
- Owners of trucks, forklifts and bulldozers as well as transport and shipping entitie
- All production industries and projects of various types
Parties of financial leasing:
- The lessor: Bank of Jordan/Finance Leasing Department provides the financing to the lessee to buy the asset.
- The lessee: The party that uses the asset and owns it at the end of the period.
- The asset: A propertywhich is meant for utilization and leasing, used by a lessee. Assets are: (cars, buses, trucks, equipment, production lines, machinery, office and medical equipment items and real estate).
- Leasing installment: An amount paid by the lessee in exchange for benefiting from an asset. The sum is determined in advance so as to correspond with the cash flow of the lessee.
For more information please contact us on the following Leasing Department contact details:
- Jordan - Amman - Mecca Street - Al-Hajar Alabyad complex-Building number 164 - first floor
- Phone: (+962 65542697)
- Fax: (+962 65542698)
- ًWebsite: www.jordanleasing.com.jo.