Finance Lease

Companies that either require new equipment to replace an old one or to expand capacity can use JPNB's Financial Leasing package. The client company specifies the equipment and supplier; JPNB acquires the chosen equipment and leases it out to the client. Through Financial Leasing the client enjoys the lowest possible initial cash outlay involving a guaranty deposit of as low as 10%. The client pays very affordable monthly rentals over a period of 24 to 48 months. For big ticket leases, the lease period can be longer.

Advantages

Sale & Leaseback

In some cases, businesses find their capital tied up in production equipment, business machines, or motor vehicles and lack funds to sustain or expand operations. One solution would be to liquify these fixed assets and use the cash for working capital. Through its Sale and Leaseback product, JPNB buys your fixed asset in cash and leases it back to you - at amazing low monthly rentals. You choose your lease period between 24 to 48 months.

Once the equipment is delivered and installed in the Lessee's premises, a Deed of Sale shall be executed, transferring ownership of the equipment to JPNB. Then a Lease Agreement is executed, whereby the Lessee pays JPNB monthly rentals for the duration of the Lease Term.

Forex Leasing

Forex Leases are financial leases denominated and payable in a specified foreign currency (USD or JPY), which allows the client to enjoy the low interest rate of the currency. This facility is made available to exporters earning foreign exchange, able to commit to pay rentals in foreign currency without being exposed to currency risk. Such clients are usually PEZA-and/or BOI-registered entities that enjoy fiscal incentives such as duty-free importation of capital equipment.

Mortgage Loans

Leasing and all its variants have advantages, which is why more and more businesses are turning to leasing for a financial solution. Certain companies however, may prefer a loan over lease owing to some reasons. As example, a bus company has to have a title of ownership over the bus units to get a line/franchise; a start-up may want to book the asset to grow his Balance Sheet; or, a non-profit organization would not have any use for a tax-deductible rental expense under a lease scheme.

In such and similar instances a preferable solution could be a loan against the asset. JPNB Leasing can structure a mortgage loan that can suit the cash flow and other particular needs of a client.

Up to 70% of the value of the asset can be financed under a direct loan with a mortgage on the property. Repayment is normally through monthly amortization of principal and interest. The term may be as short as 12 months to as long as 60 months, depending on the economic life of the asset and the client's circumstances.

Operating Lease

Vendor Financing Program

Dealers in various machine and equipment get big boost in sales when they offer their products for lease or installment. Usually, however, an equipment dealer is neither organized nor capitalized to handle sales financing. That's where JPNB Leasing comes in.

JPNB Leasing can work out with the dealer the desired leasing or financing schemes for that market, conduct orientation seminars for the dealer's sales force, or even help the dealer prepare brochures/selling kits. With the dealer sharing in some of the credit risk the joint undertaking by the dealer and JPNB Leasing becomes a very potent and effective Vendor Financing Program.

JapanPNB Leasing does all the credit valuation, execution of the financing, and collection of the account. The dealer does what he does best – selling. The intrinsic strength of the JPNB organization gets an external boost from its shareholders – established institutions on their own right.

Other Financial Services

While the above may be considered as its lead products, JPNB can provide other financial services as a company operating under the Finance Company Law.

Philippine companies regularly selling to the same customers will find JPNB's receivable financing most ideal.

Different financing problems and differing conditions require special solutions. Expect JPNB Leasing to have the right answer.