Evaluating The Impact of Financing Alternatives on The Financial Balance of The Economic Institution -A Comparative Study Between The Lease financing of Al Baraka Bank of Algeria and The Investment Loan of The Popular Credit of Algeria

Abstract

The lease financing   and investment loans are considered among the most important alternatives and financing formulas available to economic institutions from banks and financial institutions in Algeria. This research paper evaluates and studies the impact of the two financing alternatives on the financial balance of the economic institution,with the same data throughout a period of 6 years (that covers the loan period).One of the most important results reached is that both financing formulas meet the financing needs of the institution. However, there is a clear difference in the impact on the financial balance and the cost of borrowing with the intervention of other factors that affect the decision to compare between the two alternatives, including: conditions, guarantees, as well as factors related to the Islamic Shariah.