Companies that have agreed to covenants in their financing contracts are sometimes hesitant about leasing. Because leasing expenses reduce EBITDA...
This is correct under HGB, but already a misconception under IFRS - and overall a too narrow perspective that obscures the view of the advantages!
There are very compelling arguments for leasing that more than compensate for the EBITDA reduction - and there is also the solution via hire purchase!
Use the leasing industry as an alternative source of financing - especially if you have agreed to covenants!
