Financing of Software Licenses

Additional costs for customization can also be financed!

Despite the overall economic climate not being excessively positive at the moment, many companies are investing in efficiency improvements through the use of new software, such as ERP or CRM solutions.

Of course, these investments can be financed through cash flow or loans. In our opinion, the possibilities of financing software through leasing or hire purchase are still too little known!

The acquisition of standard licenses is the simplest case, whose financing is offered by many leasing companies.

In practice, however, the additional costs of a software project, such as initial consulting, customization, in-house contributions, and training costs, often exceed the license costs by a multiple! These additional costs can also be pre-financed by leasing providers and then co-financed via sale & lease back of the licenses. Therefore, you do not need to provide liquidity during the creation phase with software leasing; financing only needs to be served after the go-live.

Software leasing is not just reserved for investment grade ratings. Especially for higher leveraged companies like LBOs, this financing variant offers many advantages!

So, save your available revolver and Capex lines for more important issues and finance your software projects through leasing!

By doing so, you also optimize the balance sheet and the covenants!