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  Lease  Finance
 
IPDC has pioneered the concept of lease financing in Bangladesh through the creation of Industrial Development Leasing Company Ltd. (IDLC). Later on IPDC itself started direct lease financing to enrich its product portfolio. The leasing provides financial flexibility to enterprises for procurement of capital assets without blocking their own funds. IPDC procures the necessary machinery and equipment used by the clients under leasing arrangement. Lease rentals which include both interest and principal payments are tax deductible expenditure. The documentation requirement also is simple, convenient and less time consuming.
 
  Advantages of Leasing
 
  • Cash Management
    • Financing upto 100% of the equipment cost:

      • Leasing facility finances upto 100% of the equipment cost. This way your participation in the leasing is not needed at all.*
    • Conservation of Working Capital:

      • Since no big chunk of disbursement is made from the client side, leasing actually does not have any impact on the working capital of the client.

    • Lease Tailored to meet the cash flow needs of Lessee:

      • The project might not commence as early as completion of setup of the equipment. Keeping that in mind the cash flow or the lease rental can be tailored according to the need of the client. The cash flow can take the step up, step down, seasonality factor and the traditional constant payment approach. Clients can also enjoy a grace period depending on the inception date of their project.

      * Condition apply.

 
  • Financial
    • The lessee (the client) can diversify their financial position through leasing. In most cases leasing does not adopt the asset based lending as the leased asset is owned by the lessor (the leasing company).
    • Leasing allows the lessee to mobilize the fund of the acquired machine in other investments which will produce higher profit and it will reduce the cash outflow.
    • By leasing the client can preserve their existing bank credit lines as they are building up a new relationship with the leasing company.
 
  • Tax Benefits
    Lease equipment is shown in the balance sheet of the lessee (the client). This is why the client can claim the depreciation of the asset. Since depreciation is a tax deductible expense client will be able to enjoy tax benefit
 
  • Convenience
    Compared to bank loans the appraisal and documentation processes are simple and less time consuming, this is why the project can be implemented quicker than the other financing options
 
  • Issuance of Equity is Not Essential
    Raising new equity or debt for capital expenditure has many constraints which can be avoided when choose leasing as your mode of finance.
 
  • Lesser Emphasis on Extra Security
    In most of the cases Leased assets acts as the security of the financing. This is why Extra collateral might not be needed if you choose leasing as your financing option over Term Loan.
 
    Why IPDC ?
 
  • Competitive Interest Rate
    IPDC offers competitive interest rates compared to the rates available from other financial institutions in the market. No hidden cost.
 
  • Repayment Terms
    IPDC offers an attractive repayment package matching the convenience of the entrepreneurs. The lease financing can be extended up to five years depending upon realistic appraisal of circumstance and the payment pattern can be monthly, quarterly or half-yearly.
 
  • Long Term Relationship
    IPDC just does not provide the leasing facility, it also builds a long term relationships with the clients so that IPDC can satisfy the future financing needs of the client
 
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