Leasing. What is it?

Leasing is a special form of investment financing. The duration of a leasing contract is comparable with a normal hire. However, there are tax advantages due to a reduction of investment costs. The lessee benefits from the operational use.


Leasing advantages:

  • Calculation basis: Fixed payments simplify your internal calculations.
  • Preservation of liquidity: 100 % external financing, no tied up equity capital.
  • Customised lease payments: You determine the amount of the lease payments. By exact calculation of initial payment and terminal value the leasing period is adjusted to your company's requirements.
  • Costs and benefits: The monthly payments for the asset can be financed by current cash revenues.





  • A hire-purchase is a financing system for mobile investment goods.
  • After contract conclusion the asset will be activated in the lessee‘s balance sheet and depreciated according to the depreciation period.
  • When the last hire-purchase charge is paid, the leased asset will automatically pass to the customer’s ownership.
  • 100% external financing complements conventional sources of capital financing and therefore does not burden the credit line of your company.

Further information

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