Finance Lease

Full payout finance leases, are our main products on offer to the Maldivian entrepreneur. We give preference for revenue generating movable assets. Lease periods vary from 18 months to 54 months and are generally limited to asset acquisitions of an established business with a track record of revenue generation and impeccable credit references.

There are three parties involved in a lease transaction which include a lessor, lessee and a supplier.

Competitive Advantage

  • Leasing conserves working capital
  • Leasing is tax-advantaged
  • Leasing provides flexible payments (Lease payments can be structured to meet your needs)
  • Leasing provides fixed rate financing
  • Leasing increases purchasing power
  • Leasing does not require additional collateral or mortgage

Under finance lease we have tailored different products to better suit different market segments that may have different needs.

  • Vehicle Lease
  • Vessel Lease
  • Machinery & Equipment Lease
  • Sale & Lease Back

A lease can be structured based on your needs and requirements on the following basis, you may choose to structure your lease selecting any of the following options.

Step leases : A lease agreement that allows the lessee’s payments to either increase (step-up lease) or decrease (step-down lease) over the term of the lease to better meet the lessee’s cash flow constraints.

Cyclical leases : A lease agreement that allows the lessee’s payments to vary seasonally within a 12 month period to better meet the lessee’s cash flow constraints.

Skipped payments leases : A lease agreement that requires the lessee to make payment only during certain months or periods each year. Skipped payment leases are structured to meet the seasonal or other cash flow constraints of a specific lessee . For example, a farmer may prefer a lease with payments required only in the harvest months, when the cash flow from the sale of harvested crops is available to service the lease obligation.

Upgrade lease : An option that allows additions to existing leased equipment to improve its capacity or efficiency; or an exchange during the lease of outmoded equipment with newer model upgraded equipment.

Master lease : An agreement that contains the boilerplate provisions of the lease. It allows a lessee to add equipment to a lease (by schedule) under the same basic terms and conditions, without having to renegotiate a new lease contract. The lease rate generally is set for each equipment schedule as it is placed in service and put on lease.