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Corporate Lease



How Leasing Works
OOLC's Requirement For New Lessees




Leasing has added a new dimension to modern financial management. The basic concept of leasing is that profit is earned through use, not ownership of equipment. Although ownership of the equipment is vested in the leasing company (lessor) and in return for rental payments, the user (lessee) has virtually unrestricted use of the leased equipment, it effectively increases capital available to the lessee freeing resources for other productive uses. The advantages of leasing are given below:


  • Leasing is acceptable within the Islamic modes of financing as fixed rental payments are made and interest is
       not involved.
  • Lease rentals are allowed as deductible expenses for tax purposes.
  • Leasing provides term funding at fixed rates for up to five years in OOLC's case.
  • Leasing arrangements can be flexible and can be structured in accordance with the lessee's cash flow.
  • Leasing facilitates capital budgeting as lease rents are fixed for the entire term of the lease.
  • How Leasing Works
    Ownership of the Equipment: 
    Lessees choose the equipment that the lessors buy and leases to them. Legal ownership of the equipment remains with the lessors while the lessee enjoys the right of using it.

    Equipment Selection & Price:
    It is the lessee's responsibility to select the equipment and negotiate the price. On approving the lease facility, the lessor purchases the equipment and pays the vendor when the equipment has been delivered and accepted by the lessee.
    Types of Lease Arrangements:

    There are two ways to obtain lease finance, i.e., direct lease and sale & lease back. In the case of direct financing leases, the lessor buys the equipment to be leased directly from the vendor and then leases it to the lessee. While in the case of sale and lease back, the lessee having bought the equipment with his own funds may decide to refinance the equipment by selling it to the lessor, and the equipment is then leased back to the lessee.


    Rental Payment:
    Lease rent is usually payable monthly in advance. A deposit of 10% is normally required at the inception of the contract, but may vary.

    Length of Lease:
    The lease term can be 1-5 years depending upon the nature of the equipment being leased and agreement between the parties.
    OOLC's Requirement For New Lessees:

    1. OOLC will entertain enquiries from all business entities.
    2. OOLC normally deals only with organizations, which have been in business for at     least two years.
    3. For a detailed credit assessment, the following documents are required:

  • Three years audited financial statements
  • Last six months of bank statements.
  • Copy of computer papers, CR certificate and OCCI certificate.
  • Authorised signatory list.
  • NID card copies of the sponsors.
  • Completed application form
  • For further information please contact

    Sohar Branch:

    Hamza Rashid Al Balushi
    Branch Manager
    orixsohar@omanorix.com 


    Salalah Branch:

    Saleh Mohammed Saleh
    Branch Manager
    orixsalalah@omanorix.com


    Nizwa Branch:


    Ishaq Abdullah Al Amri 
    Branch Manager
    orixnizwa@omanorix.com


    Ibra Branch:


    Hussain Abdelkhalek Mohammed
    Branch Manager
    orixibra@omanorix.com 



    Barka Branch:

    Ahmed Mohammed Al Mawali
    Branch Manager
    orixbarka@omanorix.com 


    Seeb Branch:

    Abhilash Ravindran
    Branch Manager
    orixseeb@omanorix.com 

     

     
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