Preservation of corporate liquidity

Leasing spares raise and usage of equity and/or outside capital for capital good purchases. The lessor accounts for the capital asset while granting the lessee usage for a limited period of time against running usage charges. Instead of being bonded to the investor’s fixed assets, available financial resources can be utilized otherwise.

Tax deductibility of lease installments

Lease installments are operating expenses and thus completely deductible to profit and loss account. Taxable profit is lower in comparison to credit purchase.

Strengthening of competitiveness

Leasing gives you the opportunity of always being level to technology. Due to improvement resp. contemporary adjustment of technical infrastructure efficiency of internal procedures will be increased, potentials for savings become evident and competitiveness will be enhanced.

Leasing has no impact on the balance sheet

Your available financial resources are not bonded to your fixed assets. Purchase price of commodity and funding position are not stated in the balance sheet. Therefore important balance key figures like equity ratio and asset cover degree do not get impaired.

Leasing as a necessary financial instrument in the age of Basel II

Equity capital regulations of banks concerning credit granting in the framework of Basel II will cause a rise in credit financing cost for many companies and reduce available credit lines. Leasing will increase your flexibility and avoid liquidity risks caused by implementation of Basel II.