As opposed to traditional modes of bank lending or financing, leasing companies offers an asset-based financing model in which a property or asset is rented to another without any kind collateral.
All but especially Small and medium-size enterprises (SMEs) can particularly benefit from this sector, as financing is based on a pay-as-you-earn model of cash flows of the business entity.
There are 9 leasing companies in Pakistan, with total assets amounting to Rs. 40 billion. Their share in the non-banking finance sector was about 5% at the end of the last fiscal year. The asset size of leasing companies went up around 11% or Rs. 4 billion over 2014-15.