Could your company be facing the relocation of your leased assets abroad?

Could your company be facing the relocation of your leased assets abroad?
Then you should check the fine print in advance.

Anyone who has financed machines domestically through leasing or hire purchase and later wants to deploy them at a foreign location — for example, at a subsidiary — will quickly encounter a significant problem in practice: this is not so easily possible with the leasing company.

The reason lies in an inconspicuous but unambiguous clause found in virtually every leasing agreement: 𝘁𝗵𝗲 𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 𝗰𝗹𝗮𝘂𝘀𝗲.

Any relocation of the asset must be reported to the leasing company in advance. However, depending on the intended destination, the company's response can vary considerably:

➡️ Domestic relocations are almost always approved without issue, provided timely notice is given.
➡️ Cross-border relocations, on the other hand, regularly fail — unless they have been discussed and explicitly agreed upon with the financing partner in advance.

As is so often the case, the decisive lever lies in the selection of the financier:
Those who select leasing companies according to this criterion from the outset and put appropriate supplementary agreements in place secure the entrepreneurial flexibility they need — without risking costly contract breaches down the line.

International production structures and asset-based financing are by no means mutually exclusive. It all comes down to approaching the matter strategically from the very beginning.

👉 Are you currently planning to relocate production capacities?
👉 Do you have a clear view of the location clauses in your existing contracts?

Don't leave your flexibility to chance!

Let's talk!