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ORIX
Leasing Egypt SAE (OLE), one of the first Lessors in the Arab Republic of
Egypt, was formed as a joint venture between leading international
institutions to provide medium term financing by way of equipment leasing. It
was incorporated as an unlisted joint stock company under the Investment Law
in June 1997 and commenced operations in October 1997. r>
bsp;
OLE'S business and market focus:
OLE focuses on medium and small
ticket leasing. However, it serves large enterprises also. The Company places
emphasis on building long-term relationships in all its dealings. It is a
leading company providing medium term financing to small and medium-sized
enterprises. This segment of the economy is expected to provide 90% of new
employment opportunities and is therefore crucial to the development of the
economy. OLE provides lease financing for up to five years at fixed cost.
Assets leased include passenger cars, buses, commercial vehicles, plant,
machinery, office equipment and real
estate.
A wide range of business sectors are
served including manufacturing, food & beverage, pharmaceutical,
transport, trading, distribution, engineering and services etc.
How does leasing work?
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1.
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The prospective Lessee selects the equipment / vehicle, finds
the supplier and negotiates the price because he knows his own business
better than we do and understands his requirements. He then requests OLE
for a lease facility by submitting the required legal documents and
financial statements etc.
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2.
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On receipt of basic information about the Lessee, OLE will
make an offer covering the main conditions of the proposed contract. A
satisfactory credit evaluation (carried out by OLE) is a main condition of
this offer. The Lessee's acceptance of the offer will enable OLE to proceed
with the evaluation.
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3.
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The credit evaluation is based on information provided by the
prospective Lessee about his financial and business affairs. All such
information is received in strict confidence and will not be disclosed or
released outside OLE. The amount of information needed is dependent on the
value of financing required.
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4.
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On approval of credit, the lease contract and other documents are
signed, asset is insured from an approved insurance company and a security
deposit is paid by the Lessee. On completion of all documentation
formalities, a confirmed purchase order is issued to the selected supplier
for delivery of the equipment to the Lessee on behalf of OLE.
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5.
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Payment for the equipment will be made by OLE directly to the
supplier once the equipment has been delivered to the Lessee and
acknowledged to be in good working order.
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6.
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OLE will normally finance 80 to 90% of the cost of the
equipment, which means that the Lessee finances 10% from his own resources
in the form of security deposit.
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7.
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In return, OLE will charge a monthly/quarterly rent in advance for the period of
contract, which will typically be three to five years.
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8.
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OLE requires the Lessee to be responsible for maintenance and
insurance of the equipment. However, for the convenience of the Lessee, OLE
can arrange the insurance and incorporate it in the rentals. This option is
particularly popular for small and medium-sized contracts.
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9.
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In case of vehicles, OLE staff extends full assistance for registration
and renewal of the vehicle license at the traffic department. During the
tenure of the lease, the title of the vehicle remains with ORIX as owner
and the Lessee as user. After the successful completion of the contract,
title is transferred to the Lessee or its nominee.
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10.
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The equipment is the legal property of OLE when the contract
is in force. However, the Lessee has the legal right to use the equipment
without interference and OLE cannot take possession or control of it unless
the Lessee is in material breach of the contact.
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