Financial Lease


Finance Lease is a credit facility where LLFC (lessor) acquires fixed assets based on the requirements/needs of the client (lessee) which are then leased by the client (Lessee) from LLFC (Lessor) through payment of periodic lease amortization. The benefits and risks of ownership of the assets are transferred to the lessee at the end of the term

This facility allows enterprises to acquire equipment, motor vehicle, lot and building and other equipment, to expand, upgrade or modernize their operations. It also enables enterprises to match financing terms with the earning potential of the capital asset, preserve working capital and credit lines and address existing or current budget limitation.

This credit facility allows clients to acquire equipment and other assets to expand, upgrade or modernize their operations.

For Government accounts it can be used for the acquisition of land and building

Direct Lease

A lease arrangement wherein LLFC (Lessor) acquires an asset directly from a third party (usually the supplier or manufacturer) and leases it out to the client (Lessee).

Sale and Leaseback

A lease arrangement wherein the client may sell an asset to LLFC and leases back the same asset over a lease period. The client becomes the Lessee and LLFC becomes the Lessor. The purpose of a sale and leaseback facility is to liquidate client’s fixed asset for working capital.

Sublease Arrangement

A lease arrangement wherein LLFC (Lessor) gives consent to the client (Lessee) to sublease the leased asset to a third party (Sublessee). There is a lease agreement between LLFC (Lessor and owner of the asset or equipment) and the client (Lessee) who transfers the owner’s rights to the possession and use of the asset to the Sublessee over an agreed payment period. The Lessee and the Sublessee has a separate contract or agreement.

Operating Lease


A Rental Agreement granted for selected asset types that have long economic life and well-established secondary markets. This facility is open only for Landbank and its subsidiaries who do not want to be burdened with the acquisition and disposition processes and will rather not have the risks and benefits of ownership on the leased asset.

Leases may be packaged to include in the rentals the operating and maintenance costs of the assets to be leased. These may include, but not limited to, insurance, LTO registration, chauffeuring services, real property taxed. In the negotiation the Account Officer should take into consideration the possible increases in the cost of the operating and maintenance expenses that will be included in the lease package. An escalation cost to ensure that the possible increases in operating and maintenance expenses will be duly covered part of the contract.