DFCC open its doors enduring relationships starting with leasing
DFCC Bank, Sri Lanka's pioneer development bank is offering leasing facilities for registered corporate business entities, industrialists, agriculture sector, professionals and individuals at lowest interest rates through its branch net work countrywide.
The bank provides financial assistance to purchase brand new or reconditioned or used vehicles, machinery and equipment through finance leases and its leasing business is growing rapidly owing to the flexible attitude adopted by the DFCC, said N.Karunasingha Vice president -leasing of the DFCC Bank in Trade Talk with Sunday Times.
He noted that leasing is the best way to finance fixed assets, as it does not need any collateral and cumbersome process of documentation. On the other hand, a leasing facility could be obtained within a very short period of one, two or three days not like loans which will take weeks or months to materialise, he added.
To buy a new machinery or equipment or vehicles can be costly and requires substantial capital outlay and therefore leasing is the best method to purchase such items as it enables businesses to preserve precious cash reserves and allow individuals including professionals and company executives to manage their earnings prudently. Particularly to a start up business, leasing is the best way to finance its fixed assets. The relatively small, regular monthly payments required by a lease agreement enable businesses with limited capital to plan and manage their cash flows more effectively and adapt quickly to changing economic conditions, he disclosed. Leasing also allows businesses to upgrade assets more frequently ensuring they have the latest equipment without having to make substantial capital outlays.
The interest rate of a lease is fixed for the entire period and it offers the flexibility of the repayment period being matched to the useful life of the assets, he said adding that the leasing gives businesses certainty because asset finance agreements cannot be altered by the lenders and repayments are generally fixed. However, they can also be structured to include additional benefits such as servicing of facility on variable monthly payments depending on a business's needs. It is easy to access because it is secured - largely or entirely - on the asset being financed, rather than on other personal or business assets.
Obtaining a leasing facility from the bank will open doors for customers to an entire range of banking services and establish long term relationships with them which will eventually bring benefits for customers as DFCC Bank is fully committed to protect and nurture customers by giving necessary financial advice, even highlighting pitfalls, he revealed.
Its unique at DFCC, the staff mainly with engineering and technical qualifications is fully geared in providing project loan facilities, leasing facilities for machinery and equipment as well as technical knowhow for its clients he disclosed. The DFCC Bank will offer guidance for customers to manage the cash flow properly and overcome problems of their business through the bank's technically qualified and experienced staff.
He added that the bank will go to the extent of rescheduling the repayment of leasing or loan facilities by considering the financial situation of their customers. The DFCC is financially very stable and able to offer the lowest interest rates in the market. DFCC is a specialized licensed bank regulated by the Central Bank and it has 57 years experience in development banking in the island.
We will work towards introducing more finance and leasing products, which will be based heavily on the emerging trends in the market. While designing these products, we will concentrate mainly on satisfying our customers' basic day-to-day banking needs." Mr. Karunasingha said.
Referring to the DFCC Vardhana Bank, a fully owned subsidiary of DFCC Bank, he said that this bank has grown from strength to strength over the past few years, and the achievement of its delivery points across the island makes it one of the fastest growing commercial banks in Sri Lanka. It provides the entire range of commercial banking facilities to the customers.
DFCC Group is a premier financial group of the country at present in the core areas of lending, finance leasing, corporate finance, investment banking, deposit mobilisation, trade finance and treasury operations. It has played a major role in spearheading the growth of the national economy and pioneering many development projects for the private sector.
The Bank provides easy packages for customers in leasing vehicles through their links with major motor traders in the island like United Motors Lanka Plc he said adding that it will bring benefits for businessmen who want to purchase commercial vehicles.
Many of the country's leading industrialists and businessmen acknowledge the support received from DFCC Bank especially during the early stages of their businesses. DFCC has also pioneered and driven the development of many industry sectors, he said.