What are the advantages of financing through leasing?
• Facilities can be obtained much faster than traditional forms of financing
• Requires less documents
• Known monthly commitment
• Frees up bank lines
• Repayment plans according to your requirement (Structured and Residual Lease Facilities)
What are the types of equipment are financed?
Motor vehicles, three wheelers, motor cycles, tractors, construction equipment, plant and machinery, computers etc.
Are used vehicles/equipment financed?
Yes, used assets are financed subject to there being an established value for such assets. It is also a necessity for there to be a clearly identifiable owner for such assets.
We finance popular vehicles which are up to 20 years old subject to conditions
Who can obtain a lease facility?
Any individual, partnership or limited liability company could obtain a facility subject to the financier’s assessment of the applicant’s creditworthiness
Does one have to be a tax payer or a current account holder to be eligible to obtain a lease facility?
No. These are no pre requisites.
Do you need to pledge assets as collateral?
No. Leasing facilities are generally extended without additional collateral. However, there could be instances where additional collateral may be requested for especially when it comes to financing of equipment
What documents do I have to submit when applying for a lease facility?
• Invoice from the person selling the vehicle/equipment
• Valuation from a company approved value. Valuations could be obtained through our branch network (Except Brand New Vehicle).
• Proof of income of applicant and guarantors. If documents are not available, we could still consider based income/projected income assessment derived from discussions and onsite inspections
• Documents certifying/confirming sources of projected income.
• Project proposals in the case of equipment financing.
• Copies of NICs of the applicant and the guarantors
Can the payment plan be structured to meet my cash flow?
Yes, if income is seasonal.
How much would I have to pay as pre payments?
This would depend on the age of the asset, marketability of the asset, credit worthiness of the applicant etc.
Can a lease facility be repaid prematurely?
Yes. There would be a rebate for pre termination.
How long would it take to obtain a lease facility?
We are committed to finalizing an application within a day subject to all required information/documents being submitted.
Do I have to insure the asset financed?
Yes, the asset financed has to be insured (Full Insurance). Our fully owned subsidiary HNB Assurance will place the insurance with an insurer of your choice who is acceptable to us
Whom do I contact in order to obtain a lease facility?
Simply call your nearest branch or our customer service hotline on 0112024848 and we will assist you accordingly
Can the rental payments under lease contract be claimed as an allowable expense?
The rental could be claimed subject to the asset leased being used to generate income on a liable activity