FAQs

• Lease facility is a product used to fund capital expenditures of the business or in other terms for purchasing fixed assets for a business.
• Whereas, murabah facility is a credit tool to provide working capital for a business.
• In a lease facility the asset title is vested in the name of the leasing company.
• In a murabah facility the asset is pledged as a security.

At YANAL we offer facilities for only commercial entities and do not offer for individuals.

• The applicant should be a registered business entity in the Kingdom of Saudi Arabia and provide copy of certificate of registration along with the company documents.
• Should possess financial statements for 2 سنة.
• Asset details for finance required.
• During the facility approvals YANAL may request additional business related documentation.

At YANAL we offer finance lease options. Finance lease options are lease to own product. During the lease tenure the asset ownership is under the leasing company name (lessee being the user) and upon payment of all dues payments as stipulated in the lease agreement the asset ownership is transferred to the lessee.

YANAL does not offer operating lease options. However, lessee can negotiate with the respective supplier for a maintenance package, and YANAL can finance such costs involved.

YANAL prefers assets purchased from local agents or through an approved supplier for the company. You can contact a YANAL representative for more information about your suppliers whether they are registered or the ability to finance assets sold by such suppliers. Further, your YANAL representative can assist you to procure assets through our registered suppliers at competitive prices.

YANAL does not purchase directly from international suppliers. However, can offer a facility under “Sale & Lease Back” product upon arrival of the asset or structure a suitable facility to fund your requirements against existing assets.

YANAL offers lease facilities for any productive standalone assets from a photocopy machine to large production plants and commercial real estates.

YANAL leases commercial real estates such as commercial buildings, warehouses, factory complexes and properties used for commercial purposes.

YANAL does not offer facilities for residential properties.

Financial services are not applicable for Value Added Tax. Therefore, our rentals or instalments for lease or murabah facilities respectively do not include Value Added Tax. However, other fees related are applicable for Value Added Tax.

• Leasing diversifies funding sources and does not tie up existing working capital or credit lines.
• Leasing offers cash flow benefits. Rentals worked out at the inception of a lease assist expense budgeting and cash flow forecasting.
• Leasing provides certainty. A lease is a fixed term contract during which the rent amount cannot be changed, nor is it cancellable by the lessor (unless breach of contract occurs), while overdrafts or bank loans may be payable on demand and may be reduced during a credit squeeze.
• Leasing arrangements are very flexible and can be designed for up to seven سنة’ lease rentals basis in accordance with the cash flow requirements of the lessee.

You can apply for a Sale & Lease Back facility where YANAL will finance the purchased assets at market price. Contact your YANAL representative to give you more details.

YANAL prides itself on customer focus and speed of response. The time required to successfully consummate a facility could range from a few days to a few weeks depending on the complexity and size of the transaction.