National Bank of Abu Dhabi formed 'Abu Dhabi National Leasing (ADNL)' as a fully owned subsidiary to assist companies to free up their capital resources and cashflows.
The new service is set to benefit a number of major UAE, foreign companies and Government organizations, and presents an alternative to traditional bank financing.
ADNL General Manager Mr Yousef Abdulla Yousef said: 'Leasing is an important and smart option to borrowing funds for a number of companies, Its key benefit is that leasing allows the financing and refinancing of major assets through a pay-back period system, freeing up vital capital and operating funds.'
He also said that 'for corporate companies, leasing is an attractive option to the conventional borrowing, particularly in industries such as construction, transportation and real estate'.
Mr. Yousef added that 'Leasing is based on the principle that profits are earned through the use, rather than the ownership of equipment and assets. Whilst conventional banking finance often requires the borrower to provide collateral as security for the loan, leasing has no such requirement'.
Mr Yousef indicated there were a number of reasons why leasing presented added benefits to borrowing money or making cash purchases 'The leasing agreement can be drawn up to the lessee's individual specifications, e.g. as regards term, payment schedule and mode of payment - or as regards further use of the leasing object after the leasing term. From the lessees point of view, leasing can allow new businesses with limited capital and credit history or small businesses without a history of financial statements to quickly boost their operations. Leasing provides more financial leeway as the lessee's debt ratios and equity capital remain intact, thereby making available working capital for more productive operational uses and business opportunities.'
Abu Dhabi National Leasing LLC (ADNL) was established as a limited liability company with a paid up capital of AED 10 million. ADNL, a fully owned subsidiary of NBAD, is entitled to own, manage, sale, rent, lease and invest in all types of movable and fixed assets including any durable asset, plant, equipment, machinery and commercial vehicles.