Leasing is a financing option where the lease object is procured and financed by the lessor. The object is loaned to the lessee for use subject to the payment of an agreed leasing fee (down payment + monthly installments).
Hire purchase is a financing system for mobile investment goods. After contract conclusion the object will be activated in the lessee‘s balance sheet and depreciated according to the depreciation period. Upon payment of the last instalment, the leased object will automatically pass to the lessee’s ownership. 100% external financing complements conventional sources of capital financing and therefore does not burden your company's credit line.