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What is Financial Leasing?
Financial leasing is a modern financing method that allows individuals to own and make use of certain assets for medium to long term financing periods in return for previously-set interim payments.
Finance leases typically entail the following:
- The lessee, who is the customer or borrower, identifies a given asset (equipment, vehicle, software, etc.).
- The lessor, who is the finance company, purchases the identified asset and becomes its legal owner.
- The lessee, in turn, will be able to use the asset throughout the determined leasing period, paying a series of rentals or installments for the use of that asset.
- At the conclusion of the leasing period, the lessor would have recovered a large portion (or all) of the initial cost of the identified asset, in addition to interests earned from the rentals or installments paid by the lessee.
- The lessee also has the option to acquire ownership of the identified asset by, for example, paying the final rental or installment, or by bargaining a final purchase price with the lessor.
- Throughout the duration of the leasing period, the lessor (finance company) remains the legal owner of the asset. However, the lessee also has control over the asset, making use of the benefits and assuming the risks of economic (defacto) ownership.
For more information
Address:
Amman - Shmeisani
Credit Management - Ground floor
Tel : +962 6 5684448 , +962 6 5654968
Fax : +962 6 5683247
P.O. Box 940045 Amman 11194 Jordan
ahli.leasing@ahlibank.com.jo
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