Leasing – a beneficial component of financing strategies

At Baron Investment, you can choose from over 25 leasing companies, from the market leader to creative niche providers. Because we are not specialised in individual market segments or sectors, we can help you find solutions for SME investments that go beyond mere financing. As a leasing broker, our fees are paid by the leasing companies. As a result, our services come at no charge to you.

Basics

Leasing refers to the medium and long-term rent of business assets. The payment rates and instalments for the entire period of the leasing agreement are defined at the outset. The lessee, as a rule, is not required to input its own equity capital; there is no capital commitment.

Advantages

Leasing – the advantages at a glance:

The leased asset remains the property of the leaser, who will usually reassume the exploitation of the asset at the end of the leasing agreement. This is in contrast to finance leasing: the investment asset is transferred into the ownership of the lessee upon payment of the final instalment.
Forms of investment such as leasing are gaining in importance, due not least to the more rigid criteria imposed with regard to the issue of credit by the banks (Basel II). Balance sheet ratios and equity ratios are the decisive keywords here. Leasing is a balance sheet neutral financing form that helps create the room for manoeuvre to make necessary investments. In this way you will be able to react flexibly to market opportunities.
  • A perfect fit: Your specific needs regarding the capital goods required, the time of acquisition and the supplier are met in full.]
  • Peace of mind: The leasing payment and term of the contract are clear from the start
  • Flexibility: Conditions such as the term, use/service fees, maintenance, repairs and use after the end of the leasing agreement are freely negotiable for the most part
  • Liquidity effects: Leasing does not drain liquidity or lead to an increase in borrowing. The costs of the investment are distributed according to the pay-as-you-earn principle over the time in which the assets are used to generate earnings
  • Balance sheet effects: Leasing liabilities are not recognised in the balance sheet. Your equity ratio remains unaffected, and your rating will not be negatively impacted
  • Tax effects: Leasing payments are operating expenses and are therefore fully tax deductible from the start, helping you avoid extended depreciation periods and optimise your tax burden
  • Efficiency effects: Services provided by the leasing company – such as the maintenance of machines and devices, as well as the complete provision of fleet or IT management – enable efficiency gains through targeted outsourcing
  • Sales and marketing effects: With providers of high-quality goods and services looking to offer their customers optimal financing through an expert partner, leasing is increasingly becoming an important sales promotion tool
  • Leasing is generally around 15% less expensive than buying an asset and roughly 5% less expensive than a loan for the same amount at typical bank rates

Customers

Leasing offers distinct advantages – in all areas of the economy. Our range of customers is correspondingly extensive:

Capital goods

Leasing is a financing model of the future that is suitable for a wide range of capital goods. Turn to us for a personal leasing offer for:

  • manufacturers
  • wholesales and retailers
  • car dealers
  • industry and commerce
  • trades
  • freelancers and the public authorities and its sponsoring companies.
  • Vehicles
  • Manufacturing machinery
  • Construction equipment
  • IT and office equipment
  • Medical and lab equipment
  • Private capital goods such as pleasure craft, horses or aircraft

Leasing: Basics

Leasing refers to the medium and long-term rent of business assets. The payment rates and instalments for the entire period of the leasing agreement are defined at the outset. The lessee, as a rule, is not required to input its own equity capital; there is no capital commitment.

The leased asset remains the property of the leaser, who will usually reassume the exploitation of the asset at the end of the leasing agreement. This is in contrast to finance leasing: the investment asset is transferred into the ownership of the lessee upon payment of the final instalment.
Forms of investment such as leasing are gaining in importance, due not least to the more rigid criteria imposed with regard to the issue of credit by the banks (Basel II). Balance sheet ratios and equity ratios are the decisive keywords here. Leasing is a balance sheet neutral financing form that helps create the room for manoeuvre to make necessary investments. In this way you will be able to react flexibly to market opportunities.

Leasing: Advantages

Leasing – the advantages at a glance:

  • Precision: your specific requirements are precisely met in relation to the particular investment goods, the time of the procurement and the supplier.
  • Planning security: the leasing instalment payments and the duration of the agreement are fixed at the outset.
  • Flexibility: Wide scope for negotiating parameters such as duration, amount of the fee, maintenance and servicing and realisation following the expiry of the agreement.
  • 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.
  • Balance sheet effects: leasing commitments are not added to the balance sheet, the equity ratio is not impacted, your rating will not deteriorate.
  • 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.
  • 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.
  • 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.
  • Utilisation effects: Leasing enables economic fluctuations in capacity to be more flexibly managed.
  • 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!

Leasing: Customers

Leasing offers distinct advantages – in all areas of the economy. Our range of customers is correspondingly extensive:

  • manufacturers
  • wholesales and retailers
  • car dealers
  • industry and commerce
  • trades
  • freelancers and the public authorities and its sponsoring companies.

Leasing: Investment goods

Leasing as a financing model for the future is suitable for a wide variety of the most diverse investment goods. We can draw up your own personal leasing offer for:

  • vehicles
  • production machinery
  • construction machinery
  • IT and office equipment
  • medicine and lab equipment and
  • private investment goods such as speed boats, horses, aeroplanes.

Talk to us – we will show you many alternatives.

53° 33″ 18″ N
9° 59″ 18″ E

Our coordinates

Would you like some more information about our services? We would be delighted to hear from you!

Headquarter


Hamburg
Baron Investmentvertriebsgesellschaft mbH
Gänsemarkt 44

D-20345 Hamburg

Phone: +49(0)40 / 18 04 074-0
Fax: +49(0)40 / 18 04 074-77

Email: info@baron-investment.com

Contact form


Your message