Leasing in Procurement? A Costly Misconception.
In most companies, leasing sits exclusively within procurement. It is treated as an operational purchasing matter – for vehicle fleets, forklifts, or laptops.
The problem:
The strategic potential of financing remains completely untapped.
Leasing is not a pure procurement process. It is a financing instrument. And that is precisely why it belongs in Treasury.
Why? Because as finance professionals, we don't ask: "What does the asset cost?" – we ask:
👉 How do we secure the highest and most cost-effective liquidity?
👉 How do we optimise the balance sheet structure?
👉 What tax levers can we utilise?
👉 How does this impact covenants and cash flow?
When we speak with CFOs, many are surprised to discover which assets beyond the "usual suspects" are leasable – and what headroom this creates within working capital.
💡 Conclusion:
Those who view leasing purely as procurement are leaving money on the table.
Those who bring this function into Treasury gain strategic flexibility.
How is this organised in your company:
Does procurement still hold the reins, or is Treasury already taking the lead?
Leasing in Procurement? A Costly Misconception.
