Leasing - advantages

Leasing is a financing instrument with many advantages:

Leasing

•  is an ideal way to diversify your company's financing mix, so that working capital lines are available undiminished for working capital needs. Because leasing does not count against the possible credit line with your banks.

LeasingPilot note:
This assumes that the leasing company does not refinance with one of your banks.

• preserves your liquidity: higher financing rates, up to 100% of an investment, are often possible and instalment payments begin with the use of the asset ("pay as you earn" effect), i.e. ideally you cover the instalment payments from the income generated by the asset.
   
• offers a fixed calculation basis through fixed interest rates, which can, however, be flexibly adjusted if desired (e.g. degressive, seasonal, etc.): LeasingPilot note: Variable-rate offers are also available on the market.
   
• opens up tax advantages by bringing forward expenses and when the interest barrier applies
   
• avoids a balance sheet extension under HGB ("off balance effect") - this does not negatively affect the equity ratio and the rating. Other financial covenants such as leverage can also be positively influenced.
   
• In the case of operating leases, the possibility of returning the property can be advantageous - if the residual value is calculated fairly.