Top Leasing & Factoring Service Provider in Egypt

 

GlobalCorp- Why Leasing vs. Banking?

18 November 2020by Shahir Elfaramawy

GlobalCorp`s efficiency enabled it to have an excellent transaction turnaround time and known for its flexibility.
Banks are known for their rigid credit/risk techniques and slow TAT. Additionally, Leasing and Factoring have the advantage over the bank in the following:

  1. Leasing Companies can perform a financial restructure to the balance sheet in favor of the client. The repayment schedule is tailored to match the cashflow of the company unlike banks who show no flexibility to their clients. One of the prominent leasing types used is to use MTLS to pay short term loans using sale and lease back.
  2. Vehicle financing is easier in leasing companies than banks (due to slow and difficult process).
  3. Clients favor leasing to traditional banks because banks take security interest in all company assets, including receivables and inventory while leasing is only for the leased asset in question.
  4. Bank funding for real estate developers is restricted by the CBE TO 5% OF their capital base with limitations to the purpose of finance (Project finance only). this is one of the main reasons that leasing companies are very active in funding real estate developers.
  5. Contracting Sector is driven by government mega projects all over Egypt and expected to continue which will require leasing for the different equipment and machinery needed the contracting sector is not favorable for the banks and this clients in this segment tend to rely on leasing and factoring more.

GlobalCorp-Unique Selling PointsProposition

  1. Ability to innovate and design new products provided instant growth and market share. we are known for our innovative product offering and selling techniques. GlobalCorp uses first to market approach when it comes to acquiring business. We believe that our rich asset-based background enabled us to think differently and be more responsive to customer needs.
  2. GlobalCorp enjoys a strong relationship with banks and funding institutions enabling it to secure a very competitive cost of funds. Thus, part of this benefit is transferred to clients and enable management to tailor and customize leasing and factoring products.
  3. GlobalCorp factoring business is the only profit-making player in the market from the first year of operation based on management market intelligence. Management cross selling capabilities between leasing and factoring products is one of the key success points for the new factoring business and same strategy will be applied for future business arms.
  4. GlobalCorp`s strong capital base compared to other leasing and factoring companies enables it to orchestrate and execute large transactions. In addition to that, our creative team with ability to structure deals has led us to become the market leader in syndicated transactions.