How Does Leasing Work? - SAMA Finance SAE

SAMA Finance SAE

How Does Leasing Work?

The prospective lessee selects the asset, finds a supplier and negotiates the price. The lessee then requests SAMA Finance for a lease facility by submitting the required legal company documents, financial statements, etc.

Upon receipt of the documents, SAMA Finance will make an offer highlighting the main terms and conditions of the proposed contract. The lessee's acceptance of the offer will enable SAMA Finance to proceed with the evaluation.

The credit evaluation is based on information provided by the prospective lessee with regards to its financial and business affairs. All such information is received in strict confidence and will not be disclosed or released outside SAMA Finance unless otherwise required by law or a regulatory authority.

On approval of credit, a lease contract and other legal documents are signed, leased asset is insured from a SAMA Finance approved insurance company.

Payment for the equipment is made by SAMA Finance directly to the supplier once the equipment has been delivered and the lessee acknowledges it to be in good working order in writing.

SAMA Finance will normally finance 80% to 90% of the cost of the asset, the remaining to be finance by the lessee from its own resources in the form of a deposit upfront.

Repayment of the financed amount is through monthly rents usually paid in advance for the period of contract, which is typically three to five years

SAMA Finance requires the lessee to be responsible for the maintenance and insurance of the equipment. However, for the convenience of the lessee, the insurance cost can be incorporated within the monthly rent.

In case of vehicles, SAMA Finance staff extends full assistance for the registration and later renewal of the vehicle license at the traffic department. During the tenure of the lease, the title of the vehicle remains with SAMA Finance as owner and the lessee as a user. After the successful completion of the contract, the title is transferred to the lessee.

The leased asset is the legal property of SAMA Finance when the contract is in force. However, the lessee has the legal right to use the leased asset without interference and SAMA Finance will not take possession or control of the leased asset unless the lessee is in material breach of the lease contact.

SAMA Finance is at the forefront providing innovative financial solutions to businesses for the acquisition of productive assets through finance lease which helps them to expand and grow their businesses and propel them to the next level.

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