Leasing: Advantages

Leasing – the advantages at a glance

1. Precision: your specific requirements are precisely met in relation to the particular investment goods, the time of the procurement and the supplier.
2. Planning security: the leasing instalment payments and the duration of the agreement are fixed at the outset.
3. Flexibility: Wide scope for negotiating parameters such as duration, amount of the fee, maintenance and servicing and realisation following the expiry of the agreement.
4. Liquidity effects: Leasing does not lead to a depletion of liquidity or an increase in debt financing. The costs of the investment are distributed over the period according to the “pay-as-you-earn” principle, with costs covered by earnings.
5. Balance sheet effects: leasing commitments are not added to the balance sheet, the equity ratio is not impacted, your rating will not deteriorate.
6. Tax effects: leasing instalment payments are operating costs that are immediately and fully tax deductible. Extended depreciation times can be bypassed enabling the tax burden to be optimised.
7. Efficiency effects: Services provided by the leasing companies such as maintenance of machinery and appliances or the assumption of the responsibility for fleet or IT management facilitates the increase in efficiency through objective outsourcing.
8. Innovation effects: The flexibility of the agreement period allows optimal changes to be implemented to meet technological changes. The risk of realisation of the investment goods is largely borne by the leasing company.
9. Utilisation effects: Leasing enables economic fluctuations in capacity to be more flexibly managed.
10. Sales effects: leasing is becoming increasingly important as an instrument for sales promotion, because suppliers often have to offer high-value goods and services in combination with a good financing package arranged through a suitable partner.

Leasing is, as a rule of thumb, approximately 15% more cost-efficient than purchasing the particular asset and approximately 5% more cost-efficient than arranging a corresponding credit on standard banking terms.

Talk to us – we will ensure you benefit from your financing!