Leasing - Hire purchase
Invest without equity capital expenditure
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.
- Calculation basis: fixed leasing instalments 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 object can be financed by current cash revenues.